Crown corporations and other reporting entities' letter of representation for 2018 to 2019
This page allows Crown corporations and other reporting entities to consult the instructions for the letter of representation for 2018 to 2019 to the Deputy Receiver General for Canada and the Auditor General of Canada.
On this page
- 1. Revision history of the Crown corporations and other reporting entities' letter of representation
- 2. About the Crown corporations and other reporting entities' letter of representation
- 3. How to prepare the Crown corporations and other reporting entities' letter of representation
- 4. Dates and important information
- 5. Preparation of the letter of representation
- 6. Enquiries related to the Crown corporations and other reporting entities' letter of representation
- Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation
- Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act
- Appendix C: Excerpts of sections 33 and 34 of the Financial Administration Act
- Appendix D: Definitions
1. Revision history of the Crown corporations and other reporting entities' letter of representation
Revision
When a section is revised, it supersedes the previous one. The revision icon at the beginning of a paragraph is used to identify changes.
Revision number | Issuing date | Significant changes |
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Revision 15 | April 24, 2019 | The following changes have been made:
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Revision 14 | April 20, 2018 | The following changes have been made:
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Amendment 1 to revision 13 | May 10, 2017 | These instructions have been updated to allow more time to Crown corporations and other reporting entities to prepare and submit their letter of representation, following the flood situation in the National Capital Region:
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Revision 13 | April 13, 2017 | The following changes have been made:
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2. About the Crown corporations and other reporting entities' letter of representation
By way of the letter of representation, management confirms in writing to the signatories of the Government of Canada's consolidated financial statements its accountability for the financial information to be included in the audited consolidated financial statements contained in the Public Accounts of Canada. Also, by submitting this letter of representation to the Auditor General, management confirms that it has disclosed all important and relevant information to the external auditor.
2.1 Who should prepare a Crown corporations and other reporting entities' letter of representation
In support to Crown corporation (CC) forms submitted under the Reporting instructions for Crown corporations and other reporting entities, these instructions apply to those Crown corporations and other reporting entities:
- that provide information accounted for or disclosed in the Government of Canada's audited consolidated financial statements, including, but not restricted to:
- Crown corporations listed in Parts I and II of Schedule III of the Financial Administration Act (FAA)
- a number of Crown corporations not listed in the schedules of the FAA as they are exempt from the application of Divisions I to IV of Part X of the Financial Administration Act and other reporting entities. Lists of Crown corporations and other reporting entities are presented in Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation of these instructions
- which have been delegated authority under section 33 of the Financial Administration Act. Refer to Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act for a list of these Crown corporations with authority for a portion of their business
- that administer insurance programs as agents of the Crown and provide data or information to compile the portion of the note on contingent liabilities related to insurance programs presented in the notes to the consolidated financial statements of the Government of Canada
- that, at the Auditor General or the Receiver General for Canada's discretion, are required to provide a letter of representation
The chief executive officer (CEO) of the reporting organization must ensure that management's responsibility is fully disclosed in the letter of representation for:
- the proper recording of financial transactions in the accounts of Canada, if applicable
- the proper reporting of financial transactions to be included in the Public Accounts of Canada
The chief financial officer (CFO) of the reporting organization must:
- report all information required to the Deputy Receiver General (Deputy RG)
- disclose information pertaining to non-compliance with any representation described in section 5. Preparation of the letter of representation
- inform and obtain approval of any proposed wording changes to the pre-drafted letter of representation with the responsible officers at Public Services and Procurement Canada (for the Deputy RG) as described in section 6. Enquiries related to the Crown corporations and other reporting entities' letter of representation
- prepare the letter of representation and ensure that it is dispatched by email in a timely manner to the Deputy RG and the Auditor General
- keep the original letter of representation for the usual retention period of financial documents
2.2 Why prepare a Crown corporations and other reporting entities' letter of representation
The authorities for these instructions are:
- sections 63 and 64 of the Financial Administration Act (FAA) (R.S., c. F-11; 1985). These require the Receiver General to maintain the accounts of Canada and to prepare the Public Accounts of Canada
- section 6 of the Auditor General Act. It requires the Auditor General to examine and report on the audited consolidated financial statements of the Government of Canada contained in the Public Accounts of Canada
The Receiver General and the Auditor General require annual letters of representation to fulfill this responsibility in accordance with:
- section 65 of the Financial Administration Act which allows the Receiver General to request appropriate information
- section 13 of the Auditor General Act which entitles the Auditor General to require and receive appropriate information
Failure or refusal to comply with these instructions therefore constitutes non-compliance with sections 63 and 64 of the FAA.
The audited consolidated financial statements of the Government of Canada with supporting notes and schedules are included in the Public Accounts of Canada which are tabled in Parliament and subsequently released to the general public. As part of the audit process, the Auditor General and the signatories to the consolidated financial statements of the Government of Canada, namely the Secretary of the Treasury Board, the Deputy Minister of Finance, the Deputy Receiver General and the Comptroller General of Canada, obtain representations from the management of reporting organizations; in other words, various Crown corporations and other reporting entities that form part of the Government's reporting entity and that have provided financial and other information to the Receiver General for publication in the Public Accounts of Canada. The representations confirm management's responsibilities with respect to the proper recording of financial transactions in the accounts of Canada and, where applicable, in the accounts of the reporting entity. Other representations cover the proper reporting of information to be included in the Public Accounts of Canada.
Letters of representation are not published in the Public Accounts of Canada. However, the Deputy Receiver General requires a signed LOR and the Auditor General, a signed duplicate of the representations made by each Crown corporation and other reporting entity to the Auditor General to support similar representations made to the Auditor General of Canada by the Deputy Receiver General for Canada, the Secretary of the Treasury Board of Canada, the Comptroller General of Canada and the Deputy Minister of Finance, pertaining to the reporting of financial information to be included in the audited consolidated financial statements of the Government of Canada contained in the Public Accounts of Canada.
Financial information of Crown corporations and other reporting entities (refer to Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation) is used with that of the Government for reporting purposes in the audited consolidated financial statements of the Government. Crown corporations and other reporting entities must submit representations to support the information pertaining to their activities that appear in the Public Accounts of Canada as they form part of the Government's reporting entity.
Several Crown corporations (refer to Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act) are also required to use the Consolidated Revenue Fund (CRF) or have been delegated authority to do so under section 33 of the Financial Administration Act (refer to Appendix C: Excerpts of sections 33 and 34 of the Financial Administration Act). Accordingly, some or all of their financial transactions are recorded in the accounts of Canada, and their financial information is disclosed in the Public Accounts of Canada. It must be stressed that those Crown corporations listed in Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act, which are required to use the CRF or which have been delegated authority under section 33 of the FAA must, whenever appropriate, make representations for those transactions recorded in the accounts of Canada and for those transactions that should have been recorded in the accounts of Canada.
Information regarding insurance programs administered by Crown corporations or other reporting entities also appears in a note to the audited consolidated financial statements of the Government of Canada. The Canada Deposit Insurance Corporation, the Canada Mortgage and Housing Corporation, Export Development Canada, Farm Credit Canada and any other Crown corporation or other reporting entities administering insurance programs are to address the representation concerning insurance programs shown in section 5. Preparation of the letter of representation.
3. How to prepare the Crown corporations and other reporting entities' letter of representation
Crown corporations and other reporting entities within the Government's reporting entity are required to submit a letter of representation to support Crown corporations (CC) forms submitted in accordance with the Reporting instructions for Crown corporations and other reporting entities. They must prepare written representations on its own letterhead using the electronic copy of the pre-drafted letter of representation available in section 5.1 Pre-drafted letter of representation and examples or upon request by sending an email to: tpsgc.cpccontrole-paccontrol.pwgsc@tpsgc-pwgsc.gc.ca.
The pre-drafted letter of representation reflects the current status of the Government audit environment. Wording changes may be required to make a representation applicable to a particular Crown corporation or other reporting entity. Any proposed changes to the wording must be agreed to beforehand with the responsible officers from Public Services and Procurement Canada (for the Deputy Receiver General) as described in section 6. Enquiries related to the Crown corporations and other reporting entities' letter of representation. In addition, the Deputy Receiver General and the Auditor General reserve the right to require amended wording, new inclusions or additional representations. Disclosure of exceptions to the circumstances set forth in the pre-drafted letter of representation is required and the details to be disclosed are described in section 3.2 Disclosure of exceptions.
It is possible that audit staff of the external auditor may not visit or request financial records from a particular Crown corporation or other reporting entity during a fiscal year for the purpose of the Public Accounts of Canada. Consequently, some representations may not be entirely appropriate. In such situations, these cases must be indicated in an appropriate manner. Nonetheless, a letter of representation is required of all Crown corporations and other reporting entities within the Government's reporting entity, whether they were visited by the external auditors or not.
3.1 Special reporting criteria
Crown corporations exercising authority under section 33 of the Financial Administration Act.
Several Crown corporations, including the Canadian Dairy Commission, Telefilm Canada and Export Development Canada have been delegated signing authority under section 33 of the Financial Administration Act (FAA) (refer to Appendix C: Excerpts of sections 33 and 34 of the Financial Administration Act). In addition, the Canada Mortgage and Housing Corporation administers certain programs for the Government. Some activities of these programs are recorded in the Consolidated Revenue Fund (CRF). These corporations must make representations, which are specifically mentioned in the pre-drafted letter of representation, for those activities that are recorded in the CRF.
3.2 Disclosure of exceptions
Where it is necessary to include exceptions to the standard representations contained in the pre-drafted letter of representation, provide the following details, where applicable:
- identification of the account, program or vote affected
- specific authorities not adhered to (legislation, directives, circulars, regulations, etc.)
- impact of the exception on the Crown corporations (CC) forms and supplementary reports required for the Public Accounts of Canada of the current fiscal year. The disclosure of particulars, including dollar amounts where appropriate, applies to each exception. It is not appropriate to net items
- any additional information to further explain the exception
3.3 Security level classification and transmission of the letter of representation
Crown corporations are responsible for establishing the security level classification of their signed letter of representation. In most cases, the information is classified unrestricted. In such cases, the letter can be transmitted by email to the Deputy Receiver General and the Auditor General. Otherwise, the signed letter of representation must be sent by courier to the Deputy Receiver General and a signed duplicate (not a photocopy) must also be sent by courier to the Auditor General within the designated timeframe. Coordinates are provided in section 3.3.1 Transmission of the letter of representation.
In all cases, Crown corporations must ensure to keep the original letter of representation for the usual retention period of financial documents.
3.3.1 Transmission of the letter of representation
The letter of representation must be jointly addressed to the Deputy Receiver General and to the Auditor General with the original sent by email to the addresses provided below. However, if your organization establishes that your document will contain sensitive information, the original must be sent by courier directly to the Deputy Receiver General with a signed duplicate (not a photocopy) sent also by courier to the Auditor General, to the addresses given below.
- Name:
- c/o Josée Fortier
- Title:
- Financial Analyst
- Organization:
- Accounts of Canada and financial reporting
Public Accounts Section
Central and Public Accounts Reporting Directorate
Receiver General and Pension Branch
Public Services and Procurement Canada - Address:
- Portage III floor 13A1
11 Laurier St
Gatineau QC K1A 0S5 - Email:
- tpsgc.cpccontrole-paccontrol.pwgsc@tpsgc-pwgsc.gc.ca
Name:
- c/o Michael Walsh
- Organization:
- The Office of the Auditor General of Canada
Public Accounts Audit Central Team - Address:
- West tower 10th floor
240 Sparks St
Ottawa ON K1A 0G6 - Email:
- ct.ec@oag-bvg.gc.ca
3.4 Signature requirements
The letter of representation must be signed by both appropriate officials of the Crown corporation or other reporting entity:
- the chief executive officer (CEO)
- the chief financial officer (CFO)
The responsibility for signing the letter of representation cannot be delegated for administrative convenience by either of the appropriate officials. If due to illness or some other unavoidable reason, an appropriate officer is unable to certify, the letter of representation should then be signed by an authorized replacement, who has been formally appointed in an acting capacity for the absent official. Particulars of these situations should be entered in the area below the signature panel.
4. Dates and important information
For administrative purposes, the date to be used for the letter of representation is June 7, 2019.
The letter of representation (dated June 7, 2019), jointly addressed to the Deputy Receiver General and to the Auditor General, is due between June 10 and June 14, 2019, for each reporting organization appearing in Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation. The signature date is June 7, 2019 and letters will only be accepted between June 10 and June 14, 2019. In the event of an early submission, the reporting organization will be asked to resubmit the letter in the approved time frame. Letters sent after the due date will be considered as late submissions.
5. Preparation of the letter of representation
Letters of representation are not published in the Public Accounts of Canada, nor are they part of any published report. They are used by the Government and the Auditor General of Canada to support representations made by Crown corporations (CC) and other reporting entities regarding the proper recording and reporting of financial transactions and information in the Public Accounts of Canada.
You must round all amounts to the nearest dollar.
Ensure all representations agree with CC forms, plates and manuscripts containing financial information, on the basis of the Government's year-end, to be included in the Public Accounts of Canada, as submitted to the Receiver General for Canada.
If corrections are necessary to CC forms, plates or manuscripts previously submitted which affect the letter of representation, proceed as follows:
- revise applicable pages of the letter of representation
- clearly mark and date the revised pages as such
- submit these revised pages to the Deputy Receiver General and Auditor General along with a brief letter of explanation
Note
A letter of representation or a similar document issued to an external auditor in support of the auditor's separate opinion on the entity's financial statements will not be accepted as a substitute unless it is in the prescribed format of the pre-drafted letter of representation, and covers the government's fiscal year (April 1 to March 31). In addition, such a document must cover the period of time following the year-end designated as a subsequent event period.
When preparing your letter of representation, use your organization's letterhead for the first page.
All mandatory representations, which apply to you, are specified below. However, representation number 12 applies only to Crown corporations and other reporting entities operating insurance programs. Crown corporations administering insurance programs must make representations for information submitted on form CC-10 for the fiscal year ending March 31.
Any proposed change to the wording of the representations in the pre-drafted letter of representation must be agreed to beforehand with the responsible officers from Public Services and Procurement Canada, for the Deputy Receiver General (refer to section 6. Enquiries related to the Crown corporations and other reporting entities' letter of representation). In addition, the Deputy Receiver General and the Auditor General reserve the right to require amended wording, new inclusions or additional representations.
If a representation that is applicable to your organization has a zero dollar closing balance to report, indicate "Nil" against the representation. Do not use "Not applicable" or "N/A". Do not delete the representation.
If a particular representation does not apply to your organization, indicate "Not applicable" or "N/A" against the representation in question.
The following representations included in the pre-drafted letter of representation are mandatory for those reporting organizations as specified below and, therefore, must not be answered by "Not applicable" or "N/A":
- representations numbered 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 33, 37, 38, 39, 40, 41 and 42 apply to all reporting organizations
- representation 12 applies only to Crown corporations and other reporting entities operating insurance programs
- representation 32 applies only to Consolidated Crown corporations and other entities
- representations 34, 35, and 36 apply only to those Crown corporations exercising authority under section 33 of the Financial Administration Act
Important
Each representation must maintain the corresponding number assigned to it in the pre-drafted letter of representation.
Each reporting Crown corporation and other reporting entity must consider each representation, and all exceptions must be reported, in the manner prescribed in section 3.2 Disclosure of exceptions. In some instances, an example of exceptions for representations is provided in this section; however, they do not form a set of examples based on specific circumstances of a particular reporting organization, but are intended as "stand alone" illustrations of exceptions reported in respect of "individual representations".
Crown corporations and other reporting entities that are required to submit a letter of representation must be identified by their complete legal name. Space is provided in the pre-drafted document's introductory page (page 1).
Representations must be on the basis of the government's fiscal year ending March 31 (from April 1 to March 31). This is the basis of the information required by the CC forms.
5.1 Pre-drafted letter of representation and examples
Print on corporate letterhead and send to both addressees.
June 7, 2019
By email to:
Public Services and Procurement Canada
tpsgc.cpccontrole-paccontrol.pwgsc@tpsgc-pwgsc.gc.ca
or by courier to:
The Deputy Receiver General for Canada
c/o Josée Fortier
Financial Analyst, Accounts of Canada and Financial Reporting
Public Accounts Section
Central and Public Accounts Reporting Directorate
Receiver General and Pension Branch
Public Services and Procurement Canada
Portage III floor 13A1
11 Laurier St
Gatineau QC K1A 0S5
By email to:
The Auditor General of Canada
ct.ec@oag-bvg.gc.ca
or by courier to:
The Office of the Auditor General of Canada
c/o Michael Walsh
Public Accounts Audit Central Team
West tower 10th floor
240 Sparks St
Ottawa ON K1A 0G6
Letter of representation
We are providing this letter to the Deputy Receiver General for Canada and to the Auditor General of Canada in connection with the audit by the Auditor General of Canada of transactions and financial information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada.
We are responsible for the proper recording of financial information, and for the proper reporting of that information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada included therein, for the year ended March 31, 2019.
Certain representations in this letter are described as being limited to matters that are material. An item is considered material, regardless of its monetary value, if it is probable that its omission from or misstatement in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada would influence the decision of a reasonable person relying on the Public Accounts of Canada and on the audited consolidated financial statements of the Government of Canada.
We [enter the complete legal name of your organization in this space], hereinafter referred as "the reporting organization", hereby make the following representations to the best of our knowledge and belief.
Representation number 1 (Reported transactions)
All financial transactions of the reporting organization have been accurately reported to the Deputy Receiver General for recording in the accounts of Canada on forms CC-1 through CC-10Footnote 1 and other plates in accordance with the Public Accounts of Canada instructionsFootnote 2 (page available on Government of Canada network only), if applicable, as per the Reporting instructions for Crown corporations and other reporting entities.
It is the responsibility of Crown corporations and other reporting entities to report details of transactions on CC forms (and other plates if applicable), in a timely and accurate manner for reporting in the Public Accounts of Canada. This includes the assets, liabilities, revenues and expenses of the reporting organization, as well as supplementary schedules or notes which are combined with the Government's balances (or supplementary information) in the accounts of Canada and the Public Accounts of Canada.
Example
All financial transactions of the reporting organization have been accurately reported to the Deputy Receiver General for recording in the accounts of Canada on forms CC-1 through CC-10 (and other plates in accordance with the Public Accounts of Canada instructions) (page available on Government of Canada network only), as per the Reporting instructions for Crown corporations and other reporting entities, except as follows:
Revenues for the year of $64,900,000 could not be accurately split between transactions with the Government and outside sources. It is believed that most of this revenue is generated from the marketplace; however, some Federal department transactions have occurred and are not identifiable or estimable due to the reporting organization's accounting system.
Representation number 2 (Books of accounts and records)
The reporting organization has maintained complete, proper, and accurate books of accounts and records, from which it has prepared complete and accurate financial statements and supplementary reports and CC forms (and other plates if applicable), required for the Public Accounts of Canada. There are no material transactions during the year that have not been properly reflected in the accounts. The organization has appropriately reconciled its books and records (for example, general ledger accounts) underlying the financial results to its related supporting information (for example, sub ledger or third party data). The reporting organization is a corporation with section 33 authority under the Financial Administration Act (FAA), and further declares that all accounts representing transactions recorded in the Consolidated Revenue Fund (CRF) are reflected correctly and have been reconciled to those of the corporationFootnote 2.
All amounts recorded in subsidiary accounts in the reporting organization's accounting system must have been reconciled to the corporation's general ledger. In the case of Crown corporations which have been delegated payment authority under section 33 of the FAA, they further declare that all transactions recorded in the accounts of Canada are reflected correctly and have been reconciled to those of the reporting organization.
Section 131 of the Financial Administration Act requires Crown corporations to keep books, records and management control systems to enable the preparation of accurate financial statements. Any exceptions must be disclosed and detailed including amounts.
Example
The reporting organization has maintained complete, proper, and accurate books of accounts and records, from which complete and accurate financial statements and supplementary reports and CC forms (and other plates if applicable) required for the Public Accounts of Canada, have been prepared. There are no material transactions during the year that have not been properly reflected in the accounts. We have appropriately reconciled our books and records (for example, general ledger accounts) underlying the financial results to their related supporting information (for example, sub ledger or third party data), except as follows:
The accounts receivable sub-ledger does not reconcile with the General Ledger accounts receivable of the organization by $45,000. Our organization's officers are investigating this difference.
Representation number 3 (Disclosure controls and procedures)
The reporting organization has maintained disclosure controls and procedures to provide reasonable assurance that its material information, including its consolidated subsidiaries, is made known to us by others within those entities.
Example
The reporting organization has maintained disclosure controls and procedures to provide reasonable assurance that material information relating to the reporting organization, including its consolidated subsidiaries, is made known to us by others within those entities.
Representation number 4 (Internal control over financial reporting)
The reporting organization has designed, implemented and maintained internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada. In addition, management has designed controls and procedures to provide reasonable assurance that material information relating to the reporting organization included in the CC forms is complete and accurate. The reporting organization has disclosed all known deficiencies in the operations of disclosure controls and procedures and internal control over financial reporting as of March 31, 2019.
Example
The reporting organization has designed, implemented and maintained internal control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada. In addition, management has designed controls and procedures to provide reasonable assurance that material information relating to the reporting organization included in the CC forms is complete and accurate. We have disclosed to you all deficiencies in the operations of disclosure controls and procedures and internal control over financial reporting that we are aware of as of March 31, 2019.
Representation number 5 (Recording and reporting of financial information)
In the recording and reporting of financial information to be included in the accounts of Canada, the Public Accounts of Canada and other monthly and quarterly consolidated financial statements, the reporting organization has complied with:
- the Reporting instructions for Crown corporations and other reporting entities, significant accounting policies of the Government of Canada, if appropriate, as well as any other Treasury Board requirements (in other words, directives, circulars and regulations)
- the Financial Administration Act (FAA)
- all other legislation affecting the reporting organization (and accounts in the CRFFootnote 2)
- in addition, the reporting organization's financial statements have been prepared in accordance with [include your reporting organization's financial reporting framework] (except for those accounts maintained in the CRF, for which all relevant accounting policies of the Government of Canada have been appliedFootnote 2)
- and the consolidated Crown corporations and other entities that have adopted IFRS, have presented the information on the CC forms (and other plates, if applicable) in accordance with PSAS with the exception of those accounts and balances specifically excluded from this requirement, as noted in the Reporting instructions for Crown corporations and other reportingFootnote 5
The reporting organization must have complied with all relevant Receiver General and Treasury Board requirements, the Financial Administration Act (if applicable), and all legislation affecting the recording and reporting of financial information to be included in the accounts of Canada and reflected in the Public Accounts of Canada or other interim Government financial reports.
All Crown corporations must comply with any and all requirements of the Receiver General, the Treasury Board and any relevant legislation, regarding the recording and reporting of their financial transactions. Subsection 131(4) of the Financial Administration Act explains how Treasury Board regulations may be developed to augment the corporation's use of Canadian generally accepted accounting principles (GAAP). Subsection 89(1) of the Financial Administration Act requires the Crown corporation to implement any and all directives from Order in Council.
The reporting organization must have complied with its financial reporting framework in the preparation of its financial statements except for accounts maintained in the Consolidated Revenue Fund (CRF) for which all relevant significant accounting policies of the Government of Canada have been applied.
- The reporting organization must comply with Canadian GAAP as detailed in the Chartered Professional Accountants of Canada Handbook (except for those accounts maintained in the CRF for which the Government's significant accounting policies must apply). Details of non-compliance with Canadian GAAP must be disclosed and detailed in this paragraph. An example of such an exception might be the write-off of major capital assets to expense at the time of purchase
- Crown corporations exercising authority under section 33 of the FAA must comply with the accounting policies related to the financial transactions recorded in the accounts of Canada and the financial information reported to the Deputy Receiver General. Exceptions must be disclosed and detailed in this paragraph. Examples of such exceptions might be unrecorded payables at year-end, reporting of accrued liabilities as contingent liabilities, recording of contingent liabilities as payables, foreign currency transactions recorded at the time of payment in foreign currency and translated only at year-end
The consolidated Crown corporations and other entities which have adopted International Financial Reporting Standards (IFRS) must present the information on the CC forms (and other plates, if applicable) in accordance with Canadian Public Sector Accounting Standards (PSAS), with the exception of those accounts and balances specifically excluded from this requirement, as noted in the Reporting instructions for Crown corporations and other reporting entities.
This latter representation applies only to those other government organizations, as defined within Public Sector Accounting Standards that have chosen to adopt International Financial Reporting Standards for their external reporting. In accordance with the Reporting instructions for Crown corporations and other reporting entities, these reporting organizations are required to prepare and submit their CC forms in accordance with Public Sector Accounting Standards. There are current exceptions to this requirement and these exceptions are detailed in the Reporting instructions for Crown corporations and other reporting entities. Currently, this representation only applies to Canadian Air Transport Security Authority, Canadian Broadcasting Corporation, Canadian Commercial Corporation, Canadian Dairy Commission, Defence Construction (1951) Limited, International Development Research Centre and Via Rail Canada Inc.
Example
In the recording and reporting of financial information to be included in the accounts of Canada, the Public Accounts of Canada and other monthly and quarterly consolidated financial statements, the reporting organization has complied with:
- the Reporting instructions for Crown corporations and other reporting entities, significant accounting policies of the Government of Canada, if appropriate, as well as any other Treasury Board requirements (in other words, directives, circulars and regulations)
- the Financial Administration Act (FAA)
- all other legislation affecting the reporting organization (and accounts in the CRF)
- in addition, the reporting organization's financial statements have been prepared in accordance with [include your reporting organization's financial reporting framework] (except for those accounts maintained in the CRF, for which all relevant accounting policies of the Government of Canada have been applied)
- and the consolidated Crown corporations and other entities that have adopted IFRS, have presented the information on the CC forms (and other plates, if applicable) in accordance with PSAS with the exception of those accounts and balances specifically excluded from this requirement as noted in the Reporting instructions for Crown corporations and other reporting entities
Representation number 6 (Contractual arrangements)
The reporting organization has properly reflected all contractual arrangements entered into by the reporting organization with third parties in the accounting records or, where material (or potentially material), it has provided the agreements for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada. The organization has complied with all aspects of contractual agreements that could have a material effect on the financial information in the event of non-compliance.
The reporting organization must disclose all contractual arrangements entered into with third parties. Crown corporations and other reporting entities must have complied with all aspects of contractual agreements that could have a material effect on the financial information in the event of non-compliance.
Example
All contractual arrangements entered into by the reporting organization with third parties have been properly reflected in the accounting records or/and, where material (or potentially material) for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada, have been disclosed to you. We have complied with all aspects of contractual agreements that could have a material effect on the financial information in the event of non-compliance.
Representation number 7 (Environmental liabilities)
The reporting organization has recognized, measured and disclosed the liabilities, contingencies and commitments related to environmental matters, including remediation of contaminated sites in accordance with [include your reporting organization's financial reporting framework]. It believes that such estimates are reasonable based on the available information. Remediation liabilities have been adequately reported on the appropriate CC forms as required by section 5.1 Assets, liabilities and equity of the Reporting instructions for Crown corporations and other reporting entities which includes forms CC-1, CC-1a, CC-1b, and CC-1c (assets) and forms CC-2, CC-2a, CC-2b-1, CC-2b-2, CC-2b-3, CC-2b-4, CC-2b-5, CC-2c, CC-2d, CC-2d-1, CC-2d-2, CC-2e and CC-2f (liabilities and equity). The reporting organization has estimated and recorded obligations associated with future asset restoration.
All Crown corporations and other reporting entities are required to report on contaminated sites in accordance with the Reporting instructions for Crown corporations and other reporting entities. Enterprise Crown corporations and other government business enterprises should report their environmental liabilities on form CC-2 and related contingent liabilities on form CC-6a, while consolidated Crown corporations and other entities should use form CC-6b.
Example
Liabilities, contingencies and commitments related to environmental matters, including remediation of contaminated sites have been recognized, measured and disclosed in accordance with [include your reporting organization's financial reporting framework]. We believe that such estimates are reasonable based on the available information. Remediation liabilities have been adequately reported on the appropriate CC forms as required in section 5.1 Assets, liabilities and equity of the Reporting instructions for Crown corporations and other reporting entities which includes forms CC-1, CC-1a, CC-1b, and CC-1c (assets) and forms CC-2, CC-2a, CC-2b-1, CC-2b-2, CC-2b-3, CC-2b-4, CC-2b-5, CC-2c, CC-2d, CC-2d-1, CC-2d-2, CC-2e and CC-2f (liabilities and equity).
Obligations associated with future asset restoration have been estimated and recorded.
Representation number 8 (Contingent assets and liabilities)
The reporting organization has disclosed to the Deputy Receiver General, on the appropriate CC forms (and plates I-11 and I-12, if applicableFootnote 2) for disclosure in the Public Accounts of Canada, all known actual or possible litigation and claims, which existed at the (consolidated) statement of financial position date or exist now. It believes that the amounts recorded reflect management's best estimates and that they will likely result in an asset or liability that can be reasonably estimated.
The reporting organization has no knowledge of any other lawsuits, tax claims or pending and threatened litigation, including possible claims, of any consequence or of any other contingent assets or liabilities of whatever nature.
The reporting organization must report all contingent assets and liabilities to the Deputy Receiver General for disclosure in the Public Accounts of Canada.
Crown corporations and other reporting entities are required to report contingent assets and liabilities in accordance with the Reporting instructions for Crown corporations and other reporting entities. Contingent assets and liabilities can include guarantees, lawsuits, tax claims, and pending and threatened litigation. Contingent liabilities can also include contaminated sites (refer to representation number 7 above).
Crown corporations administering accounts for the Government should use plates I-11 and I-12 and consult section Plates I-11 and I-12: Contingent liabilities and contingent assets (page available on Government of Canada network only) of the Public Accounts of Canada instructions, for instructions on how to report contingent assets and liabilities for administered accounts.
Example
All known actual or possible litigation and claims, which existed at the (consolidated) statement of financial position date or exist now, have been disclosed or have been reported to the Deputy Receiver General on the appropriate CC forms (and plates I-11 and I-12, if applicable) for disclosure in the Public Accounts of Canada. We believe that the amounts recorded reflect management's best estimates and that they will likely result in an asset or liability that can be reasonably estimated.
The reporting organization has no knowledge of any other lawsuits, tax claims or pending and threatened litigation, including possible claims, of any consequence or of any other contingent assets or liabilities of whatever nature, except as follows:
The reporting organization has guaranteed loans totaling $9 million. It did not include this amount on its CC forms as the loans were jointly guaranteed by another corporation. Had this amount been included, our contingent liabilities would have increased accordingly.
Representation number 9 (Letters of comfort)
Letters of comfort to financial institutions from the reporting organization have not been issued nor, to the best of their knowledge and belief, has the Minister for the reporting organization issued such letters. Nor have any such letters been in force at any time during the year or during the period up to June 7, 2019.
Letters of comfort must not have been issued nor been in force at any time during the year or subsequent to the period up to June 7, 2019.
A letter of comfort is a guarantee by a Crown corporation or other reporting entity to a financial institution on behalf of another corporation, enterprise, person, association or other entity for a loan that may be issued in the future. The appropriate Government minister may issue a similar letter on behalf of a Crown corporation or other reporting entities.
Example
Letters of comfort to financial institutions from the reporting organization have not been issued nor, to the best of our knowledge and belief, has the Minister for the reporting organization issued such letters. Nor have any such letters been in force at any time during the year or during the period up to June 7, 2019 with the exception of a $200,000 letter of comfort issued on behalf of the Provincial Fishermen's Association to XY Bank on April 12, 2019.
Representation number 10 (Obligations related to capital leases, contractual obligations and details of borrowing transactions)
The reporting organization has reported to the Deputy Receiver General on the appropriate CC forms, all obligations related to capital leases and contractual obligations as well as details of borrowing transactions for disclosure in the Public Accounts of Canada in accordance with the instructions for Crown corporations and other reporting entities.
All obligations related to capital leases and contractual obligations must be reported to the Deputy Receiver General for disclosure in the Public Accounts of Canada in accordance with the Reporting instructions for Crown corporations and other reporting entities.
Information regarding capital lease obligations and contractual obligations is required for disclosure in the Public Accounts of Canada. All Crown corporations and other reporting entities must comply with the requirements of the Reporting instructions for Crown corporations and other reporting entities and report such amounts for disclosure in various notes to the audited consolidated financial statements of the Government. Cases of non-compliance must be reported and detailed.
All Crown corporations and other reporting entities are also required to submit details of borrowing transactions on form CC-6 during the year. Cases of non-compliance must be reported and detailed as per example below.
Example
All obligations related to capital leases and contractual obligations as well as details of borrowing transactions have been reported to the Deputy Receiver General on the appropriate CC forms for disclosure in the Public Accounts of Canada in accordance with the Reporting instructions for Crown corporations and other reporting entities except as follows:
(List any cases of non-compliance giving a description of the item(s) and the outstanding amounts, in dollars.)
Representation number 11 (Contractual rights)
The reporting organization has reported all contractual rights to the Deputy Receiver General on the appropriate CC forms for disclosure in the Public Accounts of Canada in accordance with the Reporting instructions for Crown corporations and other reporting entities.
Information regarding contractual rights is required for disclosure in the Public Accounts of Canada. All Crown corporations and other reporting entities must comply with the requirements of the Reporting instructions for Crown corporations and other reporting entities and report such amounts for disclosure in various notes to the audited consolidated financial statements of the Government. All Crown corporations and other reporting entities are required to submit details of contractual rights on form CC-6b-3 during the year. Cases of non-compliance must be reported and detailed.
Example
All contractual rights have been reported to the Deputy Receiver General on the appropriate CC forms for disclosure in the Public Accounts of Canada in accordance with the Reporting instructions for Crown corporations and other reporting entities.
Representation number 12 (Insurance programs administered by agent Crown corporations)
The reporting organization has submitted to the Deputy Receiver General details of the insurance funds/provisions, including all underwriting statistics, results of operations, and supplementary information as required, on form CC-10.Footnote 1
Note
Representation number 12 is mandatory only for reporting organizations operating insurance programs.
All financial transactions pertaining to insurance funds/provisions administered by Crown corporations and other reporting entities in accordance with the Reporting instructions for Crown corporations and other reporting entities, must have been reported on form CC-10 to the Deputy Receiver General.
Crown corporations and other reporting entities operating insurance programs are required to report, on form CC-10, to the Deputy Receiver General, underwriting statistics (in other words, the amount of insurance in force, the amount of net claims paid in the year, average net claims for the past 60 months (5 years) and the revenues, expenses and net income or loss for the fund/provision). In addition, the reporting organization should describe all facts that provide an assessment of the accuracy of the fund/provision, plus other factors that have a material effect on the fund/provision in notes to the above data.
Example
The reporting organization has submitted to the Deputy Receiver General details of the insurance funds/provisions, including all underwriting statistics, results of operations and supplementary information as required, on form CC-10. All information is complete except as follows:
The bankruptcy of ABC Trustco could result in claims of up to $125.5 million. At March 31, 2019, an amount of $100 million had been provided. The balance has not been reflected on the CC forms.
Representation number 13 (Financial records/minute books)
The reporting organization has made available to the external auditor all financial records and related data, records of decisions of meetings, and minute books which contain complete and authentic minutes of all meetings of the management committee, internal audit committee and [specify other management level committees as appropriate] applicable to the period April 1, 2018 to June 7, 2019 (or date of Separate Opinion Audit report if no external auditor has performed audit work on the CC forms). This(These) committee(s) held its(their) most recent meeting(s) for the said period on and
respectively.
Crown corporations and other reporting entities must have made all financial records and related data, records of decisions of meetings, and minute books available to the organization's external auditor.
Canadian Auditing Standards (CAS) include the practice of reviewing the formal minutes, informal notes or records of decisions of the meetings of management level committees. The requirement to produce minutes of the management-type committee meetings could provide the corporation's auditor with information that could have an effect on their opinion regarding the financial statements. In terms of Crown corporations, subsection 144(1) of the Financial Administration Act details the access to corporation records by the external auditor.
Example
The reporting organization has made available to the external auditor:
All financial records and related data, summations of meetings, and minute books which contain complete and authentic minutes of all meetings of the management committee and internal audit committee applicable to the period April 1, 2018 to June 7, 2019. The most recent meetings of these committees for the said period were held on June 3, 2019 and June 7, 2019 respectively.
Representation number 14 (Cash)
The books and records properly reflect and record all transactions affecting cash funds, and bank accounts of the reporting organization.
All cash and cash equivalents of the reporting entity are included in the CC form.
The reporting organization has properly disclosed arrangements with financial institutions involving compensating balances or other arrangements on cash balances or lines of credit or similar arrangements.
Example
The books and records properly reflect and record all transactions affecting cash funds, and bank accounts of the reporting organization.
All cash and cash equivalents of the reporting entity are included in the CC form.
Arrangements with financial institutions involving compensating balances or other arrangements on cash balances or lines of credit or similar arrangements have been properly disclosed.
Representation number 15 (Receivables)
Receivables represent valid claims against debtors for transactions arising on or before March 31, 2019, and have been appropriately reduced to their estimated net realizable value. The reporting organization has appropriately disclosed all uncollectible accounts and properly authorized all write-offs. It has taken appropriate action to collect all monies owed (and to Her Majesty in Right of Canada, in which latter case the reporting organization has collected and promptly deposited funds to the credit of the Receiver General for CanadaFootnote 2).
Crown corporations and other reporting entities must maintain receivable records and establish rules and procedures to record an appropriate allowance to reflect amounts where collection is in doubt.
Receivables represent valid claims against debtors and exceptions must be disclosed and detailed in this paragraph. In addition, the reporting organization has recorded an appropriate allowance to reflect amounts where collection is in doubt and has properly authorized deletions of receivables.
Example
Receivables represent valid claims against debtors for transactions arising on or before March 31, 2019 and have been appropriately reduced to their estimated net realizable value. All uncollectible accounts properly disclosed and deletions properly authorized with the exception of the deletion of $23,432 which was not authorized by a responsible officer. The reporting organization has taken appropriate action to collect all monies owed to the organization (and to Her Majesty in Right of Canada, in which latter case, monies collected have been promptly deposited to the credit of the Receiver General for Canada).
Representation number 16 (Loans receivable)
Loans receivable represent bona fide claims against debtors as at March 31, 2019. The reporting organization has properly adjusted balances to reflect any concessionary terms of the agreement. These loans are subject to its ordinary terms of credit. The reporting organization has made appropriate allowances for credit losses.
Loans receivable represent valid claims against debtors and these loans are usually subject to the ordinary terms of credit of the reporting organization.
Example
Loans receivable represent bona fide claims against debtors as at March 31, 2019. Balances have been properly adjusted to reflect any concessionary terms of the agreement. These loans are subject to the ordinary terms of credit of the reporting organization. An allowance for credit losses has been made where appropriate.
Representation number 17 (Inventories, tangible capital assets and prepayments)
The reporting organization (and Her Majesty in Right of CanadaFootnote 2) has(have) satisfactory title to all recorded assets, it properly maintains all essential records and the rules and procedures it applies are sufficient to safeguard and control them. In particular, the auxiliary records demonstrate that:
- inventories are valued at cost and cost has been determined on a basis consistent with the prior year. Inventories which are slow moving, obsolete, or unusable, or which otherwise no longer have service potential, are valued at the lower of cost or net realizable value. Taking into account existing information, management has evaluated items for which the costs are not readily available using management's best estimate of original cost
- records respecting tangible capital assets for which the reporting organization is responsible are accurate and complete, and it has properly authorized all acquisitions and disposals of tangible capital assets during the year
- all charges to tangible capital assets and additions under capital leases during the year represent actual additions and the reporting organization has not charged any expenditures of a capital nature to expense during the year
- tangible capital assets are appropriately recorded at cost, based on the best information available
- the reporting organization has eliminated from the accounts the book values of significant tangible capital assets sold, destroyed, abandoned, or otherwise disposed of
- (choose one of the following):
- [No events or changes in circumstances indicate that the carrying values of tangible capital assets are not recoverable.]
- [During the year, the reporting organization has noted conditions indicating that a tangible capital asset no longer contributed to its ability to provide goods and services, or that the value of the future economic benefits associated with the tangible capital asset was less than its net book value. Accordingly, the organization has reduced the cost of the tangible capital asset by $[amount] to reflect the decline in the asset's value, and has recorded the resulting write-down as an expense in the year, in accordance with [include your reporting organization's financial reporting framework].]
- the reporting organization has amortized the tangible capital assets with a limited life over its estimation of their useful lives in a systematic and rational manner or otherwise written off as a charge to expense
- the organization is reviewing and revising if needed its amortization methods and estimates of useful lives of the remaining unamortized portion of tangible capital assets on a regular basis
- prepaid expenses represent amounts paid for services to be rendered in future periods
- the reporting organization has disclosed in the CC forms all lease agreements covering assets leased by the reporting entity and has classified them as capital leases or operating leases
- all unrecognized assets and intangible assets have been appropriately disclosed in the CC forms
Crown corporations and other reporting entities must have legal title to these assets, maintain essential records and establish rules and procedures to safeguard and control these assets.
Example
The reporting organization (and Her Majesty in Right of Canada) has(have) satisfactory title to all recorded assets; essential records have been properly maintained and the rules and procedures applied are sufficient to safeguard and control them. In particular:
- inventories are valued at cost and cost has been determined on a basis consistent with the prior year. Inventories which are slow moving, obsolete, or unusable, or which otherwise no longer have service potential, are valued at the lower of cost or net realizable value. Items for which the costs are not readily available, have been valued using management's best estimate of original cost based on available information
- records respecting tangible capital assets for which the reporting organization is responsible are accurate and complete, and all acquisitions and disposals of tangible capital assets during the year have been properly authorized
- all charges to tangible capital assets and additions under capital leases during the year represent actual additions and no expenditures of a capital nature have been charged to expense during the year
- tangible capital assets are appropriately recorded at cost, based on the best information available
- book values of significant tangible capital assets sold, destroyed, abandoned, or otherwise disposed of, have been eliminated from the accounts
- (choose one of the following):
- [There have been no events or changes in circumstances that indicate that the carrying values of tangible capital assets are not recoverable.]
- [During the year, we noted conditions indicating that a tangible capital asset no longer contributed to [Entity]'s ability to provide goods and services, or that the value of the future economic benefits associated with the tangible capital asset was less than its net book value. Accordingly, the cost of the tangible capital asset was reduced by $[amount] to reflect the decline in the asset's value, and the resulting write-down has been recorded as an expense in the year, in accordance with [include your reporting organization's financial reporting framework].]
- tangible capital assets with a limited life are being amortized over management's estimation of their useful lives in a systematic and rational manner or otherwise written off as a charge to expense
- amortization methods and estimates of useful lives of the remaining unamortized portion of tangible capital assets have been reviewed on a regular basis and revised as appropriate
- prepaid expenses represent amounts paid for services to be rendered in future periods
- all lease agreements covering assets leased by the reporting entity have been disclosed in the CC forms and classified as capital leases or operating leases
- all unrecognized assets and intangible assets have been appropriately disclosed in the CC forms
Representation number 18 (Inventory quantities)
The reporting organization has determined inventory quantities at March 31, 2019, from its perpetual inventory records adjusted on the basis of physical inventories taken by competent employees at various times during the year. The inventory balances do not include goods on consignment from others.
There are no events, conditions, or changes in circumstances indicating that the reporting organization will not use or consume inventory held for consumption in its operations.
Example
Inventory quantities at March 31, 2019 were determined from the reporting organization's perpetual inventory records, which have been adjusted on the basis of physical inventories taken by competent employees at various times during the year. The inventory balances do not include goods on consignment from others.
There have been no events, conditions, or changes in circumstances that indicate inventory held for consumption will no longer be used or consumed in the reporting entity's operations.
Representation number 19 (Liens and encumbrances)
The reporting organization has no liens or encumbrances on its assets or assets pledged as collateral.
Example
There were no liens or encumbrances on the reporting entity's assets or assets pledged as collateral.
Representation number 20 (Liabilities and provisions)
The reporting organization has recorded or disclosed, as appropriate, all liabilities and provisions on the appropriate CC forms.
The reporting organization must record or disclose, as appropriate, all liabilities and provisions on the appropriate CC forms.
Example
We have recorded or disclosed, as appropriate, all liabilities and provisions on the appropriate CC forms.
Representation number 21 (Pension and other employee future benefits)
The reporting organization has measured, accounted for and disclosed on the appropriate CC forms, pension and other employee future benefit costs and obligations and the related assets in accordance with the Reporting instructions for Crown corporations and other reporting entities and represent management's best estimate of the respective liabilities and expenses of the pension and other employee future benefits.
More specifically:
- the reporting organization has disclosed and actuarially valued or estimated all pension and other employee future benefits of the reporting organization and the provisions of each plan as applicable
- the reporting organization has adequately considered the qualifications of the actuary. It did not give or cause any instructions to be given to the actuary with respect to the values or amounts derived in an attempt to bias their work, and the organization is not otherwise aware of any matters that have had an impact on the independence or objectivity of the actuary
- the reporting organization has also identified the details of all plan amendments up to March 31, 2019
- the source data used in the preparation of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019 is complete and accurate
- (choose the representation that applies to your organization):
- for enterprise Crown corporations: The reporting organization has determined in accordance with IFRS the actuarial obligations for pension and other future benefits at March 31, 2019
- for consolidated Crown corporations and other entities that adopted PSAS: The reporting organization has determined in accordance with PSAS the actuarial obligations for pension and other future benefits at March 31, 2019
- for consolidated Crown corporations and other entities that adopted IFRS: The reporting organization has determined in accordance with PSAS the actuarial obligations for funded pension plans reported in the CC forms at March 31, 2019.
- the reporting organization has determined the actuarial obligations for unfunded pension plans and other employee future benefits reported in the CC forms at March 31, 2019 in accordance with [include the appropriate financial reporting framework]
- all assumptions used in the determination of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019 are our best estimate of the most likely set of conditions affecting future events. These assumptions are appropriate, internally consistent, and are consistent with the asset valuation method
- the assumptions included in the actuarial valuation are those that management instructed [name actuary] to use in computing amounts to be used by management in determining benefits costs and obligations and in making required disclosures in the [consolidated] financial statements, in accordance with the Reporting instructions for Crown corporations and other reporting entities
- the actuarial valuations for accounting purposes incorporate management's best estimates. The actuarial assumptions and methods used to measure obligations and costs for pensions and other employee future benefits are appropriate in the circumstances
- in arriving at these assumptions, management has obtained advice of [consulting actuary who assisted in reaching best estimates], but assumes the final responsibility
- the reporting organization has properly prepared the extrapolation of the actuarial present value of accrued pension benefits to March 31, 2019 from the date of the most recent actuarial valuations at March 31, 20XX using source data which is complete and accurate. It has properly reflected in the determination of the accrued benefits, all assumptions used in the preparation of the extrapolation consistent with those used in the preparation of such valuations, and events occurring in the extrapolation period that materially affect the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019
- management certifies that no events have occurred subsequent to March 31, 2019 that materially affect the amount of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019
- the reporting organization has disclosed all plan assets on the appropriate CC forms
- the reporting organization has good title to such assets
- the pension plan assets are valued in accordance with [include the appropriate financial reporting framework]
- (choose the representation that applies to your organization):
- for enterprise Crown corporations: The reporting organization has recognized in accordance with IFRS adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments
- for consolidated Crown corporations and other entities that adopted PSAS: The reporting organization has recognized in accordance with PSAS adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments
- for consolidated Crown corporations and other entities that adopted IFRS: The reporting organization has recognized in accordance with (PSAS or the requirements of the Reporting instructions for Crown corporations and other reporting entities) adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments
Example
Pension and other employee future benefit costs and obligations and the related assets have been measured, accounted for and disclosed on the appropriate CC forms in accordance with the Reporting instructions for Crown corporations and other reporting entities and represent management's best estimate of the respective liabilities and expenses of the pension and other employee future benefits.
More specifically:
- all pension and other employee future benefits of the reporting organization and the provisions of each plan have been fully disclosed to you and have been actuarially valued or estimated, as applicable
- we have adequately considered the qualifications of the actuary. We did not give or cause any instructions to be given to the actuary with respect to the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the independence or objectivity of the actuary
- the details of all plan amendments up to March 31, 2019 have also been identified
- the source data used in the preparation of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019 is complete and accurate
- (choose the representation that applies to your organization):
- for enterprise Crown corporations: The actuarial obligations for pension and other future benefits at March 31, 2019 have been determined in accordance with IFRS
- for consolidated Crown corporations and other entities that adopted PSAS: The actuarial obligations for pension and other future benefits at March 31, 2019 have been determined in accordance with PSAS
- for consolidated Crown corporations and other entities that adopted IFRS: The actuarial obligations for funded pension plans reported in the CC forms at March 31, 2019 have been determined in accordance with PSAS
- [The actuarial obligations for unfunded pension plans and other employee future benefits reported in the CC forms at March 31, 2019 have been determined in accordance with [include the appropriate financial reporting framework].]
- all assumptions used in the determination of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019 are our best estimate of the most likely set of conditions affecting future events. These assumptions are appropriate, internally consistent, and are consistent with the asset valuation method
- the assumptions included in the actuarial valuation are those that management instructed [name actuary] to use in computing amounts to be used by management in determining benefits costs and obligations and in making required disclosures in the [consolidated] financial statements, in accordance with the Reporting instructions for Crown corporations and other reporting entities
- the actuarial valuations for accounting purposes incorporate management's best estimates. The actuarial assumptions and methods used to measure obligations and costs for pensions and other employee future benefits are appropriate in the circumstances
- in arriving at these assumptions, management has obtained the advice of [consulting actuaries who assisted in reaching best estimates], but has retained the final responsibility for them
- the extrapolation of the actuarial present value of accrued pension benefits to March 31, 2019 from the date of the most recent actuarial valuations at (March 31, 20XX) has been properly prepared using source data which is complete and accurate. All assumptions used in the preparation of such valuations, and events occurring in the extrapolation period that materially affect the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019 have been properly reflected in the determination of those accrued benefits
- no events have occurred subsequent to March 31, 2019 that materially affect the amount of the actuarial present value of accrued pension benefits attributed to services rendered up to March 31, 2019
- all plan assets have been disclosed on the appropriate CC forms
- the reporting organization has good title to such assets
- the pension plan assets are valued in accordance with [include the appropriate financial reporting framework]
- (choose the representation that applies to your organization):
- for enterprise Crown corporations: Adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments have been recognized in accordance with IFRS
- for consolidated Crown corporations and other entities that adopted PSAS: Adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments have been recognized in accordance with PSAS
- for consolidated Crown corporations and other entities that adopted IFRS: Adjustments arising from changes in assumptions and experience gains and losses and adjustments arising from plan amendments have been recognized in accordance with PSAS or the requirements of the Reporting instructions for Crown corporations and other reporting entities
Representation number 22 (Deferred revenue)
The reporting organization has appropriately recorded in the books and records all material amounts of deferred revenue which meet the definition of a liability.
Example
All material amounts of deferred revenue meet the definition of a liability and were appropriately recorded in the books and records.
Representation number 23 (Plans and intentions)
The reporting organization has no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reported on the CC forms (for example, to dispose of the business or to cease operations).
Example
We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reported on the CC forms (for example, to dispose of the business or to cease operations).
Representation number 24 (Investments)
The reporting organization has reported in the CC forms all securities and other financial assets that it controls.
The entity has recorded all income earned for the year on investments in the accounts.
The reporting organization is not aware of any objective evidence of impairment that would result in the recognition of an impairment loss on any investment.
Example
All securities and other financial assets that are controlled by the reporting entity were reported in the CC forms.
All income earned for the year on investments has been recorded in the accounts.
We are not aware of any objective evidence of impairment that would result in the recognition of an impairment loss on any investment.
Representation number 25 (Expenses)
The reporting organization has recorded all expenses for the year in the accounts.
Example
All expenses for the year have been recorded in the accounts.
Representation number 26 (Non-monetary transactions)
The reporting organization has recorded and disclosed all non-monetary transactions in the financial information in accordance with [include the appropriate financial reporting framework].
Example
All non-monetary transactions have been recorded and disclosed in the financial information in accordance with [include the appropriate financial reporting framework].
Representation number 27 (Subsequent events)
Since March 31, 2019 (or date of last audit) to the date of this letter, there have not been any events, new or amended legislation, regulations or directives, other than those reflected in the financial statements or notes thereto, which should be reflected or disclosed in the audited consolidated financial statements of the Government of Canada or supplementary reports of the Government of Canada.
In addition, the reporting organization acknowledges its responsibility to refer any subsequent events of substance identified after the date of this letter to Treasury Board Secretariat for guidance and to the Receiver General for submitting an updated letter of representation until the completion of the consolidated financial statements of the Government of Canada expected to occur on September 4, 2019 as well as up to the date they are tabled in the House of Commons.
No events, new or amended legislation, regulations or directives have come into effect since the fiscal year-end other than those described in this representation, which should be reflected or disclosed in the audited consolidated financial statements of the Government of Canada or supplementary reports of the Government of Canada.
Crown corporations and other reporting entities must disclose known events, legislation, regulations or directives, which have come into effect between the fiscal year-end and the effective date (June 14) of the representations. Subsequent events are defined as events providing further evidence of financial conditions which existed at March 31 or events which are indicative of conditions which arose subsequent to March 31. Exceptions must be disclosed and detailed in this paragraph. Examples of exceptions might be: Royal Assent given to legislation since March 31, final payment in respect of breach of contract which was reported as threatened litigation at March 31.
Events of substance ($50 million or more) identified after June 7, 2019, which have a bearing on the fiscal year ending March 31, 2019, should be referred to the Treasury Board Secretariat (TBS) for guidance on how to process and to the Deputy Receiver General for submitting an updated letter of representation.
Example
Since March 31, 2019 to the date of this letter, there have not been any events, new or amended legislation, regulations or directives, other than those reflected in the financial statements or notes thereto, which should be reflected or disclosed in the audited consolidated financial statements of the Government of Canada or supplementary reports of the Government of Canada, except as follows:
- on June 5, 2019, legislation was introduced in the House of Commons to sell off a portion of the corporation's operations. Bill C-XX details the intentions of the Government on this matter
- in addition, we acknowledge our responsibility to refer any subsequent events of substance identified after the date of this letter to Treasury Board Secretariat for guidance and to the Receiver General for submitting an updated letter of representation until the completion of the consolidated financial statements of the Government of Canada expected to occur on September 4, 2019 as well as up to the date they are tabled in the House of Commons
Representation number 28 (Consolidated financial statements of the Government of Canada)
The reporting organization is not aware of any information that was not disclosed to the Deputy Receiver General and to the external auditor, which could affect the consolidated financial statements of the Government of Canada or the Auditor General's opinion on them.
All known information that could have an effect on the Auditor General's opinion on the consolidated financial statements of the Government of Canada must be disclosed in the letter of representation.
Any information pertaining to a subject not specifically covered in a paragraph of the letter of representation, which could affect the consolidated financial statements of the Government of Canada, must be disclosed. Known information that has an effect on the financial information submitted by a Crown corporation or other reporting entity is considered as having an effect on the consolidated financial statements of the Government of Canada.
If there are any exceptions, the following details are required:
- clear and concise description of the item or items
- particulars, including dollar amounts, which may materially affect the consolidated financial statements of the Government of Canada
Example
The reporting organization is not aware of any information that was not disclosed to the Deputy Receiver General and to the external auditor, which could affect the consolidated financial statements of the Government of Canada or the Auditor General's opinion on them.
Representation number 29 (Internal controls)
The reporting organization understands that the prevention and detection of error and fraud are primarily its responsibility and may not necessarily be detected by the external auditor, even if they are material in amount.
The reporting organization also acknowledges its responsibility to design, implement and maintain internal controls that are designed to prevent and detect fraud and error.
Furthermore, the organization has disclosed to the Deputy Receiver General and to the Auditor General the results of its assessment of the risk that the financial records may be materially misstated as a result of fraud, and has determined such risk to be (low, moderate, high).
Choose one of the following:
- [The reporting organization has no knowledge of any frauds or suspected frauds involving management, employees who have significant roles in internal control or others where the fraud could have a non-trivial effect on the financial records of the organization.]
- [The reporting organization is aware of instance(s) of fraud or suspected fraud involving management, employees who have significant roles in internal control or others, where the fraud could have a significant effect on the financial information of the reporting organization (provide details).]
Choose one of the following:
- [The reporting organization has no knowledge of any allegations of fraud or suspected fraud affecting the financial records that was communicated by employees, former employees, analysts, regulators or others.]
- [The reporting organization has disclosed below all information relating to any allegations of fraud or suspected fraud affecting the financial records that was communicated by employees, former employees, analysts, regulators or others (provide details).]
The reporting organization must assess the risk of misstatement due to fraud or error as low, moderate or high. In addition, it must provide representations related to known or suspected fraud as well as any allegations of fraud or suspected fraud.
All significant facts relating to any frauds or suspected frauds must be disclosed to the Receiver General and Office of the Auditor General. Internal controls must be in place and properly followed to prevent and detect any fraud and error.
If there are any exceptions, the following details are required:
- clear and concise details of non-compliance of internal controls
- clear and concise description of any frauds or suspected frauds
- particulars, including dollar amounts, which may materially affect the consolidated financial statements of the Government of Canada
Example
The reporting organization understands that the prevention and detection of error and fraud are primarily its responsibility and may not necessarily be detected by the external auditor, even if they are material in amount.
The reporting organization also acknowledges its responsibility to design, implement and maintain internal controls that are designed to prevent and detect fraud and error.
Furthermore, we have disclosed to the Deputy Receiver General and to the Auditor General the results of our assessment of the risk that the financial records may be materially misstated as a result of fraud, and have determined such risk to be (low, moderate, high).
Choose one of the following:
- [The reporting organization has no knowledge of any frauds or suspected frauds involving management, employees who have significant roles in internal control or others where the fraud could have a non-trivial effect on the financial records of the organization.]
- [We are aware of instance (s) of fraud or suspected fraud and involving management, employees who have significant roles in internal control or others where the fraud could have a significant effect on the financial information of the reporting organization. Details of this fraud are as follows: (provide details).]
Choose one of the following:
- [The reporting organization has no knowledge of any allegations of fraud or suspected fraud affecting the financial records that was communicated by employees, former employers, analysts, regulators or others.]
- [The reporting organization has disclosed below all information relating to any allegations of fraud or suspected fraud affecting the financial records that was communicated by employees, former employees, analysts, regulators or others (provide details).]
Representation number 30 (Compliance with laws and regulations)
The reporting organization has disclosed to the Deputy Receiver General and to the Auditor General all known or suspected instances of non-compliance with laws and regulations whose effect should be considered when preparing financial information.
Example
The reporting organization has disclosed to the Deputy Receiver General and to the Auditor General all known instances of non-compliance or suspected non-compliance with laws and regulations whose effect should be considered when preparing financial information.
Representation number 31 (Legality of transactions)
The reporting organization is not aware of any of the following:
- any illegal or possibly illegal acts, including those committed by directors, officers or employees acting on the reporting organization's behalf (the organization has identified and disclosed all facts related to illegal or possibly illegal acts.)
- any conflicts of interest involving (name of organization) where it has directly or indirectly, entered into any purchase, sale or any other transaction with a member of Parliament, a member of the Board, a member of senior management, a manager, or with an organization in which one of these persons had a direct or indirect interest
- bribes, or improper benefits rendered or accepted
- influences applied improperly
- business inconsistent with the Corporation's charter
- loss of money or property as a result of defalcation, fraudulent acts or omission of corporate officer
- any irregularities involving management or employees who have significant roles in the system of internal accounting controls or any irregularities involving other employees that could have a material effect on the financial statements
- any communications from regulatory agencies concerning non-compliance with laws or regulations which could have a material effect on the information for inclusion in the Public Accounts of Canada
The reporting organization must declare that it is aware of any illegal acts, violations to laws, regulations and contractual agreements, of any conflicts of interest involving (name of organization) or any other actions where it has, directly or indirectly entered into a transaction with a person that has a direct or indirect interest.
Example
The reporting organization is not aware of any of the following:
- any illegal or possibly illegal acts, including those committed by directors, officers or employees acting on the reporting organization's behalf. (We have identified and disclosed to you all facts related to illegal or possibly illegal acts.)
- any conflicts of interest involving (name of organization) where it has, directly or indirectly, entered into any purchase, sale or any other transaction with a member of Parliament, a member of the Board, a member of senior management, a manager, or with an organization in which one of these persons had a direct or indirect interest
- bribes, or improper benefits rendered or accepted
- influences applied improperly
- business inconsistent with the Corporation's charter
- loss of money or property as a result of defalcation, fraudulent acts or omission of corporate officer
- any irregularities involving management or employees who have significant roles in the system of internal accounting controls or any irregularities involving other employees that could have a material effect on the financial statements
- any communications from regulatory agencies concerning non-compliance with laws or regulations which could have a material effect on the information for inclusion in the Public Accounts of Canada
Representation number 32 (Transactions with related parties)
The reporting organization has not identified any related party transactions which require disclosure as per the Chartered Professional Accountants of Canada (CPA) Public Sector Accounting Handbook, section PS 2200, Related party disclosures [except as disclosed on form CC-9: Related party transactions].
The identity and relationship of related parties as well as balances and transactions with related parties are appropriately disclosed in the CC forms.
Example
We have not identified any related party transactions which require disclosure as per the CPA Canada Public Sector Accounting Handbook, section PS 2200, Related party disclosures [except as disclosed on form CC-9: Related party transactions].
Representation number 33 (Guarantees)
All guarantees potentially having a material impact on the financial statements must be recorded and disclosed on the appropriate CC forms.
Choose one of the following:
- [No guarantees have been made by the reporting organization, nor have any guarantees been in force at any time during the year or subsequently.]
- [All guarantees potentially having a material impact on the financial statements have been recorded and disclosed as appropriate on the CC forms as provided to you for audit.]
Example
Choose one of the following:
- [No guarantees have been made by the reporting organization nor have any guarantees been in force at any time during the year or subsequently.]
- [All guarantees potentially having a material impact on the financial statements have been recorded and disclosed as appropriate in the CC forms as provided to you for audit.]
Note
The following representations, numbered 34, 35 and 36, apply only to those Crown corporations exercising authority under section 33 of the Financial Administration Act (FAA) (refer to Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act of the Crown corporations and other reporting entities' letter of representation).
Representation number 34 (Appropriation Acts and other governing statutes)
The reporting organization has adhered to all legislative requirements respecting the entering into of financial transactions, including those pertaining to accounts payable at year-end, and all such transactions have been accurately recorded in accordance with, and as appropriate, within the authorized limits of Appropriation Acts and other governing statutes.
All financial transactions must be in accordance with legislative requirements, including those pertaining to accounts payable at year-end and must have been recorded in accordance with, and as appropriate, within the authorized limits of Appropriation Acts and other governing statutes.
Reporting Crown corporations exercising section 33 of the FAA authority must comply with the FAA, the Interpretation Act and the Criminal Code of Canada. They must specifically comply with the Treasury Board policies and Treasury Board Secretariat publications. Reporting organizations must specifically comply with the Public Accounts of Canada instructions, section 1. Ministry summary (page available on Government of Canada network only), in order to disclose overexpended amounts in the manuscript "Form A: Summary of Source and Disposition of Authorities". Overexpended balances as at fiscal year-end, relating to budgetary and non-budgetary appropriations, must be disclosed and detailed in this paragraph by all reporting organizations.
Example
The reporting organization has adhered to all legislative requirements respecting the entering into of financial transactions, including those pertaining to accounts payable at year-end, and all such transactions have been accurately recorded in accordance with, and as appropriate, within the authorized limits of Appropriation Acts and other governing statutes, except as follows:
As reported in the 2018 to 2019 statement "Form A: Summary of Source and Disposition of Authorities", there has been an over-use of vote 10, in an account maintained in the CRF by the reporting Crown corporation amounting to $5,000,000.
Representation number 35 (Specified purpose accounts, other liabilities and unmatured debt)
All specified purpose accounts, other liabilities and unmatured debt:
- originated under the authority of appropriate legislation
- represent financial obligations to organizations and individuals outside the Government of Canada as an accounting entity
All specified purpose accounts, other liabilities and unmatured debt must have originated under the authority of appropriate legislation.
Those Crown corporations exercising authority under section 33 of the FAA must make representations for the transactions which are recorded as the Government's liabilities in the accounts of Canada. They must also make representations for the financial information submitted to the Deputy Receiver General, not just for the amounts disclosed in their respective financial statements or records. Exceptions must be disclosed and detailed in this paragraph. An exception would be the reporting as payables, of explicit guarantees which are contingent liabilities.
All specified purpose accounts, other liabilities and unmatured debt must represent financial obligations to organizations and individuals outside the Government of Canada as an accounting entity.
Government reporting entities must report the relevant financial information for disclosure in the "Statement of Financial Position" according to the above requirement and to the requirements of the Public Accounts of Canada instructions (page available on Government of Canada network only), section 1. Pre-drafted forms (objects) and texts on financial asset and liability accounts (page available on Government of Canada network only). Exceptions must be disclosed and detailed in this paragraph.
Example
All specified purpose accounts, other liabilities and unmatured debt:
- originated under the authority of appropriate legislation
- represent financial obligations to organizations and individuals outside the Government of Canada as an accounting entity
Representation number 36 (Accounts payable)
All unpaid accounts relating to annually lapsing and non-lapsing budgetary appropriations and annually lapsing non-budgetary appropriations on which Parliament has imposed an annual ceiling have been recorded as payables.
Crown corporations exercising authority under section 33 of the FAA must disclose payables as required by subsection 37.1(1) of the Financial Administration Act and by the Treasury Board's Archived – Directive on Year-End Recording of Payables (PAYE). They must charge against their appropriations those liabilities which meet the criteria established in the policy. They must also comply with the procedures described in the Year-end timetable and procedures, Appendix 1: Old year Departmental financial and materiel management system accrual entries, adjusting entries and closing of old year accounts (page available on Government of Canada network only) and the disclosure instructions of the Public Accounts of Canada instructions (page available on Government of Canada network only), Instructions related to Volume II of the Public Accounts of Canada (page available on Government of Canada network only).
Furthermore, the Canada Mortgage and Housing Corporation administers programs for the Government, which, at least in part, allow use of the CRF. Therefore, it is required to record its liabilities at year-end in accordance with the criteria established above. Exceptions must be disclosed and detailed in this paragraph. Examples of exceptions would be: consultant fees owing but not recorded as accounts payable; amount owing to a Crown corporation pursuant to a contractual agreement not recorded at fiscal year-end.
Example
All unpaid accounts relating to annually lapsing and non-lapsing budgetary appropriations and annually lapsing non-budgetary appropriations on which Parliament has imposed an annual ceiling have been recorded as payables, except as follows:
An accounts payable of $280,000 under the XYZ Program, vote 18, representing goods received prior to the year-end, has not been recorded as a liability. This does not comply with the requirements of subsection 37.1(1) of the FAA, with those of the Treasury Board's Directive on Year-End Recording of Payables, nor with those of the Year-end timetable and procedures, Appendix 1: Old year Departmental financial and materiel management system accrual entries, adjusting entries and closing of old year accounts (page available on Government of Canada network only). Had this amount been included, the accounts payable and the expenditures (acquisition of machinery and equipment) would each have been increased by that amount.
Representation number 37 (Derivative financial instruments)
The reporting organization has engaged in activities involving derivative financial instruments during the year. Management's objectives with respect to derivative financial instruments are: [list management objectives here]. The financial records reflect all transactions involving derivative financial instruments, all embedded derivative financial instruments have been identified and the assumptions and methodologies used in the valuation models applied to derivative financial instruments are reasonable. The terms of transactions involving derivative financial instruments include: [list terms here]. All transactions involving derivative financial instruments have been conducted at arm's length and at fair values. The reporting organization has not entered into any side agreements associated with any derivative financial instruments (except for, [state exceptions, if any]). The reporting organization has not entered into any written options (except for, [state exceptions, if any]). The reporting organization has complied with the documentation requirements required under [include the appropriate financial reporting framework] for hedge accounting, if applicable.
The reporting organization must report all activities involving derivative financial instruments.
Example
The reporting organization has engaged in activities involving derivative financial instruments during the year. Management's objectives with respect to derivative financial instruments are: [list management objectives here]. The financial records reflect all transactions involving derivative financial instruments, all embedded derivative financial instruments have been identified and the assumptions and methodologies used in the valuation models applied to derivative financial instruments are reasonable. The terms of transactions involving derivative financial instruments include: [list terms here]. All transactions involving derivative financial instruments have been conducted at arm's length and at fair values. The reporting organization has not entered into any side agreements associated with any derivative financial instruments. The reporting organization has not entered into any written options. The reporting organization has complied with the documentation requirements required under [include the appropriate financial reporting framework] for hedge accounting, if applicable.
Representation number 38 (Significant assumptions)
The reporting organization is responsible for significant estimates and judgments related to the financial information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada. Significant estimates and judgments and their underlying assumptions, methods, procedures, and the source and reliability of supporting data are reasonable, based on applicable requirements of [include the appropriate financial reporting framework], and appropriately disclosed in the CC forms. The procedures and methods used in developing assumptions, estimates, and judgments are appropriate and have been consistently applied in the periods presented.
Significant assumptions used by the reporting organization in making accounting estimates, including fair value accounting estimates, must be reasonable and consistently applied.
Example
The reporting organization is responsible for significant estimates and judgments related to the financial information for inclusion in the Public Accounts of Canada and in the audited consolidated financial statements of the Government of Canada. Significant estimates and judgments and their underlying assumptions, methods, procedures and the source and reliability of supporting data are reasonable, based on applicable requirements of [include the appropriate financial reporting framework] and appropriately disclosed in the CC forms. The procedures and methods used in developing assumptions, estimates and judgments are appropriate and have been consistently applied in the periods presented.
Representation number 39 (Fair value measurement)
For recorded or disclosed amounts in the financial information that incorporate fair value measurements, the reporting organization confirms that:
- the measurement methods are appropriate and consistently applied
- the significant assumptions used in determining fair value measurements represent the best estimates, are reasonable and have been consistently applied
- no subsequent event requires adjustment to the accounting estimates and disclosures included in the financial information
- the significant assumptions used in determining fair value measurements are consistent with the reporting organization's planned courses of action. All plans or intentions, which may materially affect the recorded or disclosed fair values of assets or liabilities, have been disclosed
- disclosures of significant assumptions are complete and appropriate under the stated accounting policies of the reporting organization. Significant estimates and measurement uncertainties known to management have been appropriately disclosed
For recorded or disclosed amounts in the financial information that incorporate fair value measurements, measurement methods should be appropriate and consistently applied; significant assumptions used in determining fair value measurements must represent your best estimates, be reasonable and be consistently applied; no subsequent event requiring adjustment to the accounting estimates and disclosures should be included in the financial information; and significant assumptions used in determining fair value measurements must be consistent with the reporting organization's planned courses of action. There should be no plans or intentions that have not been disclosed to us, which may materially affect the recorded or disclosed fair values of assets or liabilities; and disclosures of significant assumptions should be complete and appropriate under the stated accounting policies of the reporting organization. Significant estimates and measurement uncertainties known to management must be appropriately disclosed.
Example
For recorded or disclosed amounts in the financial information that incorporate fair value measurements, we confirm that:
- the measurement methods are appropriate and consistently applied
- the significant assumptions used in determining fair value measurements represent our best estimates, are reasonable and have been consistently applied
- no subsequent event requires adjustment to the accounting estimates and disclosures included in the financial information
- the significant assumptions used in determining fair value measurement are consistent with the reporting organization's planned courses of action. We have no plans or intentions that have not been disclosed to you, which may materially affect the recorded or disclosed fair values of assets or liabilities
- disclosures of significant assumptions are complete and appropriate under the stated accounting policies of the reporting organization. Significant estimates and measurement uncertainties known to management have been appropriately disclosed
Representation number 40 (Disclosing fair values)
Complete and appropriate disclosures required related to fair values have been reported to the Deputy Receiver General on the appropriate CC forms.
The reporting organization must disclose the measurement methods related to determining fair values.
Example
Complete and appropriate disclosures required related to fair values have been reported to the Deputy Receiver General on the appropriate CC forms.
Representation number 41 (Accounting principles and policies)
The accounting principles and policies followed throughout the year were consistent with the previous year's practices.
Example
The accounting principles and policies followed throughout the year were consistent with the previous year's practices.
Representation number 42 (Classification)
All amounts have been appropriately classified within the CC forms.
Example
All amounts have been appropriately classified within the CC forms.
On behalf of the reporting organization(s) referred to on the first page.
Note
The responsibility for signing the letter of representation cannot be delegated for administrative convenience by either of the appropriate officials. If, due to illness or some other unavoidable reason, an appropriate officer is unable to certify, the letter of representation should then be signed by an authorized replacement, who has been formally appointed in an acting capacity for the absent official.
The letter cannot be signed earlier than the date of the letter and the letter must be signed by all signatories on the same date.
6. Enquiries related to the Crown corporations and other reporting entities' letter of representation
Contacts within Public Services and Procurement Canada:
- Name:
- Vo Jing Diep
- Title:
- Chief
- Organization:
- Accounts of Canada and financial reporting
Public Accounts Section
Central and Public Accounts Reporting Directorate - Telephone:
- 819-420-5271
- Email:
- vojing.diep@tpsgc-pwgsc.gc.ca
- Name:
- Josée Fortier
- Title:
- Financial Analyst
- Organization:
- Accounts of Canada and financial reporting
Public Accounts Section
Central and Public Accounts Reporting Directorate - Telephone:
- 819-420-5273
- Email:
- josee.fortier@tpsgc-pwgsc.gc.ca
Name:
- Angèle Drolet
- Title:
- Financial Analyst
- Organization:
- Accounts of Canada and financial reporting
Public Accounts Section
Central and Public Accounts Reporting Directorate Telephone:
- 819-420-5267
Email:
- angele.drolet@tpsgc-pwgsc.gc.ca
Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation
List of consolidated Crown corporations
- Atomic Energy of Canada Limited
- Canada Council for the Arts
- Canada Infrastructure Bank
- Canadian Air Transport Security Authority
- Canadian Broadcasting Corporation
- Canadian Commercial Corporation
- Canadian Dairy Commission
- Canadian Museum of History
- Canadian Museum of Immigration at Pier 21
- Canadian Museum of Nature
- Canadian Museum for Human Rights
- Canadian Race Relations Foundation
- Canadian Tourism Commission
- Defence Construction (1951) Limited
- Federal Bridge Corporation Limited, TheFootnote 3
- International Development Research Centre
- Jacques Cartier and Champlain Bridges Incorporated, The
- Marine Atlantic Inc.
- National Arts Centre Corporation
- National Capital Commission
- National Gallery of Canada
- National Museum of Science and Technology
- Standards Council of Canada
- Telefilm Canada
- VIA Rail Canada Inc.
- Windsor-Detroit Bridge Authority
List of enterprise Crown corporations, other consolidated entities and other government business enterprises
Enterprise Crown corporations
- Atlantic Pilotage Authority
- Bank of Canada
- Business Development Bank of Canada
- Canada Deposit Insurance Corporation
- Canada Development Investment Corporation
- Canada Lands Company Limited
- Canada Mortgage and Housing Corporation
- Canada Post Corporation
- Export Development Canada
- Farm Credit Canada
- Freshwater Fish Marketing Corporation
- Great Lakes Pilotage Authority
- Laurentian Pilotage Authority
- Pacific Pilotage Authority
- Ridley Terminals Inc.
- Royal Canadian Mint
Other consolidated entities
- Canada Foundation for Innovation
- Canada Foundation for Sustainable Development Technology
- Canada Pension Plan Investment BoardFootnote 4
- First Nations Market Housing Funds
- Public Sector Pension Investment BoardFootnote 4
- St.-Lawrence Seaway Management Corporation
Other government business enterprises
- Belledune Port Authority
- Halifax Port Authority
- Hamilton Port Authority
- Montreal Port Authority
- Nanaimo Port Authority
- Oshawa Port Authority
- Port Alberni Port Authority
- Prince Rupert Port Authority
- Quebec Port Authority
- Saguenay Port Authority
- Saint John Port Authority
- Sept-Iles Port Authority
- St. John's Port Authority
- Thunder Bay Port Authority
- Toronto Port Authority
- Trois-Rivières Port Authority
- Vancouver Fraser Port Authority
- Windsor Port Authority
Appendix B: List of Crown corporations authorized to exercise section 33 of the Financial Administration Act
- Canada Mortgage and Housing Corporation
- Canadian Dairy Commission
- Export Development Canada
- Telefilm Canada
For those accounts that are administered on behalf of the Government, and the activities of which are at least in part recorded in the Consolidated Revenue Fund.
Appendix C: Excerpts of sections 33 and 34 of the Financial Administration Act
Section 33
- No charge shall be made against an appropriation except on the requisition of the appropriate Minister of the department for which the appropriation was made or of a person authorized in writing by that Minister
- Every requisition for a payment out of the Consolidated Revenue Fund shall be in such form, accompanied by such documents and certified in such manner as the Treasury Board may prescribe by regulation
- No requisition shall be made pursuant to subsection (1) for a payment that:
- would not be a lawful charge against the appropriation
- would result in an expenditure in excess of the appropriation
- would reduce the balance available in the appropriation so that it would not be sufficient to meet the commitments charged against it
- The appropriate Minister may transmit to the Treasury Board any requisition with respect to which that Minister desires the direction of the Board, and the Board may order that payment be made or refused. (R.S., c. F-10, s. 26)
Section 34
- No payment shall be made in respect of any part of the federal public administration unless, in addition to any other voucher or certificate that is required, the deputy of the appropriate Minister, or another person authorized by that Minister, certifies:
- in the case of a payment for the performance of work, the supply of goods or the rendering of services:
- that the work has been performed, the goods supplied or the service rendered, as the case may be, and that the price charged is according to the contract, or if not specified by the contract, is reasonable
- where, pursuant to the contract, a payment is to be made before the completion of the work, delivery of the goods or rendering of the service, as the case may be, that the payment is according to the contract
- where, in accordance with the policies and procedures prescribed under subsection (2), payment is to be made in advance of verification, that the claim for payment is reasonable
- in the case of any other payment, that the payee is eligible for or entitled to the payment
- in the case of a payment for the performance of work, the supply of goods or the rendering of services:
- The Treasury Board may prescribe policies and procedures to be followed to give effect to the certification and verification required under subsection (1). (R.S., 1985, c. F-11, s. 34; 1991, c. 24, s. 13; 2003, c. 22, s. 224 (E)).
Appendix D: Definitions
The following terms, in alphabetical order, are defined for the purposes of these instructions, as follows:
- Audited consolidated financial statements
- Audited consolidated financial statements of the Government of Canada appears in section 2 of Volume 1 of the Public Accounts of Canada and consist of a consolidated statement of operations and accumulated deficit, a consolidated statement of financial position, a consolidated statement of change in net debt, a consolidated statement of cash flow and the notes to the consolidated financial statements of the Government of Canada.
- Chief executive officer
- The senior executive officer responsible for the management of a Crown corporation or other reporting entity.
- Chief financial officer
- The senior officer responsible for the financial affairs of a Crown corporation or other reporting entity.
- Consolidated Crown corporation
- A Crown corporation that relies on Government funding as its principal source of revenue.
- Crown corporation
- A corporation which at March 31, falls within the definition of section 83 or section 85 of the Financial Administration Act (FAA). These include the corporations listed in Parts I and II of Schedule III of the FAA as well as the Bank of Canada, the Canada Council for the Arts, the Canadian Broadcasting Corporation, the Canadian Race Relations Foundation, the International Development Research Centre, the National Arts Centre Corporation and Telefilm Canada. It also includes any unconsolidated wholly-owned subsidiaries.
- Enterprise Crown corporation
- A Crown corporation that is able to raise substantial portions of its revenues through commercial business activities outside of the Government reporting entity and is self-sustaining.
- External auditor
- The Auditor General of Canada and any other independent professional accountant engaged by the Government, a Crown corporation or other reporting entity to examine and report on financial data, records, accounts, systems or statements.
- Government of Canada (Government)
- As a reporting entity, the Government of Canada comprises all organizations that are controlled by the Government.
- Letter of representation
- A certificate which contains representations made by the chief executive officer and the chief financial officer of a Crown corporation or other reporting entity to the signatories of the consolidated financial statements of the Government of Canada and to the Auditor General, confirming management's responsibility for the proper recording of financial transactions in the accounts of Canada, if applicable, and for the proper reporting of financial information to be included in the Public Accounts of Canada.
- Other consolidated entities
- Other reporting entities, as defined below, who rely on government funding as their principal source of revenue.
- Other reporting entities
- Organizations not listed in the FAA that meet the definition of control for financial reporting purposes. These organizations are included in the government reporting entity if their revenues, expenses, assets or liabilities are significant.
- Other government business enterprises
- A corporation that is not considered a Crown corporation, within the meaning of the FAA, but which is controlled by the Government and in most cases accountable to Parliament through a Minister of the Crown for the conduct of its affairs. It is however, not dependent on parliamentary appropriations and is able to raise substantial portions of its revenues through commercial business activities outside of the Government reporting entity and is self-sustaining. Refer to Appendix A: Lists of Crown corporations and other reporting entities that are required to provide a letter of representation for a list of other government business enterprises.