Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the years ended March 31, 2013 and 2014 rests with Copyright Board of Canada management, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements are based on the best information available and assumptions adopted as at December 31, 2012 and reflect the plans described in the Report on Plans and Priorities (RPP).
The paper version was signed by | ||
Claude Majeau | Deputy Head | Ottawa, Canada |
Gilles McDougall | Senior Financial Officer | Ottawa, Canada |
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 |
||
Liabilities | |||
Accounts payable and accrued liabilities (note 6) | $ 124,152 | $ 140,813 | |
Vacation pay and compensatory leave | 155,471 | 155,471 | |
Employee future benefits (note 7) | 219,674 | 220,759 | |
Total liabilities | 499,297 | 517,043 | |
Financial Assets | |||
Due from Consolidated Revenue Fund | 61,240 | 77,901 | |
Accounts receivable and advances (note 10) | 62,912 | 62,912 | |
Total gross financial assets | 124,152 | 140,813 | |
Financial assets held on behalf of Government | |||
Accounts receivable and advances (note 10) | (61,912) | (61,912) | |
Total financial assets held on behalf of Government | (62,912) | (62,912) | |
Total net financial assets | 61,240 | 77,901 | |
Depertmental net debt | 438,057 | 439,142 | |
Non-financial assets | |||
Tangible capital assets (note 8) | 19,961 | 9,981 | |
Total non-financial assets | 19,961 | 9,981 | |
Departmental net financial position | $ (418,096) | $ (429,161) | |
Contractual obligations (note 9) | |||
The accompanying form an integral part of these financial statements. |
The paper version was signed by | ||
Claude Majeau | Deputy Head | Ottawa, Canada |
Gilles McDougall | Senior Financial Officer | Ottawa, Canada |
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 |
||
Expenses | |||
Tarrif Setting and Issuance of Licences | $ 2,827,671 | $ 2,846,489 | |
Internal Services | 663,281 | 667,696 | |
Total expenses | 3,490,952 | 3,514,185 | |
Net cost of operations | $ 3,490,952 | $ 3,514,185 | |
Government funding and transfers | |||
Net cash provided by Government | 3,093,827 | 3,110,249 | |
Change in due from the Consolidated Revenue Fund | 7,080 | 16,661 | |
Services provided without charge by other government departments (note 10) | 361,905 | 376,210 | |
Net cost of operations after government funding and transfers. | 28,140 | 11,065 | |
Departmental net financial position - Beginning of year | (389,956) | (418,096) | |
Departmental net financial position - End of year | $ (418,096) | $ (429,161) | |
Segmented information (Note 11) | |||
The accompanying notes form an integral part of these financial statements. | |||
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 |
||
Net cost of operations after government funding and transfers | $ 28,140 | $ 11,065 | |
Change due to tangible capital assets | |||
Amortization of tangible capital assets | (11,039) | (9,980) | |
Total change due to tangible capital assets | (11,039) | (9,980) | |
Net increase (decrease) in departmental net debt | 17,101 | 1,085 | |
Departmental net debt - Beginning of year | 420,956 | 438,057 | |
Departmental net debt - End of year | $ 438,057 | $ 439,142 | |
The accompanying notes form an integral part of these financial statements. | |||
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 | ||
Operating activities | |||
Net cost of operations | $ 3,490,952 | $ 3,514,185 | |
Non cash items: | |||
Services provided without charge (note 10) | (361,905) | (376,210) | |
Amortization of tangible capital assets | (11,039) | (9,980) | |
Variations in Statement of Financial Position: | |||
Decrease (increase) in accounts payable and accrued liabilities | (7,080) | (16,661) | |
Decrease in future employee benefits | (17,101) | (1,085) | |
Cash used in operating activities | $ 3,093,827 | $ 3,110,249 | |
Net cash provided by Government of Canada | $ 3,093,827 | $ 3,110,249 | |
The accompanying notes form an integral part of these financial statements. | |||
The Copyright Board of Canada is an independent administrative agency which has been conferred department status for purposes of the Financial Administration Act. Its mandate stems from the Copyright Act.
The Copyright Board of Canada plays a major role in the collective administration of copyright, particularly where the public performance and the communication to the public, by telecommunication, of musical works, as well as the retransmission of distant radio and television signals are concerned. The Copyright Board of Canada plays a surveillance role in three ways with respect to collective societies which administer very large repertoires of work created by a multitude of originators both in Canada and in other countries: as an economic regulatory body, by approving tariff proposals by the various copyright collective societies; as an arbitrator in private disputes; and as an arbitrator of the public interest.
The Copyright Board of Canada's principal mandate is to set royalties which are fair and reasonable for both copyright owners and the users of copyright-protected works, as well as issuing non-exclusive licences authorizing the fully legal use of works when the copyright owner cannot be located.
The Copyright Board of Canada reports annually to Parliament through the Minister of Industry.
These future-oriented statements have been prepared on the basis of the government priorities and the plans of the department as described in the RPP.
The main assumptions are as follows:
These assumptions are adopted as at December 31, 2012.
While every attempt has been made to accurately forecast final results for 2012-13 and for 2013-14, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.
In preparing these future-oriented financial statements the Copyright Board of Canada has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:
Once the RPP is presented, the Copyright Board of Canada will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report.
The future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies in effect for the 2012-13 fiscal year. These accounting policies, stated below, are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
Significant accounting policies are as follows:
Asset class | Amortization period | |
Machinery and Equipment | 10 years | |
Computer Hardware | 3 to 5 years |
The Copyright Board of Canada receives most of its funding through annual parliamentary authorities. Items recognized in the Future-oriented Statement of Operations and Departmental Net Financial Position and the Future-oriented Statement of Financial Position in one year may be funded through parliamentary appropriations in prior, current or future years. Accordingly, the Copyright Board of Canada has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
a) Reconciliation of the net cost of operations to requested authorities
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 |
||
Net cost of operations | $ 3,490,952 | $ 3,514,185 | |
Adjustments for items affecting net cost of operations but not affecting appropriations | |||
Add (Less): | |||
Services provided without charge (Note 10) | (361,905) | (376,210) | |
Amortization of tangible capital assets (Note 8) | (11,039) | (9,980) | |
Forecast authorities available | $ 3,118,008 | $ 3,127,995 | |
b) Authorities requested
(in dollars) | |||
Estimated Results 2013 |
Planned Results 2014 |
||
Budgetary authorities | |||
Vote 45 - Operating expenditures | $ 2,815,245 | $ 2,826,682 | |
Statuory Amounts | 302,763 | 301,313 | |
Forecast authorities available | $ 3,118,008 | $ 3,127,995 | |
(in dollars) | Estimated Results 2013 |
Planned Results 2014 |
|
Accounts payable to external parties | $ 107,655 | $ 107,655 | |
Accrued salaries and wages | 16,497 | 33,158 | |
$ 124,152 | $ 140,813 |
(in dollars) | Estimated Results 2013 |
Planned Results 2014 |
|
Accrued benefit obligation - | |||
Beginning of year | $ 202,573 | $ 219,674 | |
Expense for the year | 33,660 | 35,465 | |
Benefits paid during the year | (16,559) | (34,380) | |
Accrued benefit obligation - | $ 219,674 | $ 220,759 | |
End of year | |||
(in dollars) | |||||||
Cost | Accumulated amortization | 2014 | 2013 | ||||
Capital asset class | Opening balance | Closing Balance | Opening balance | Amortization | Closing Balance | Net book value | Net book value |
Machinery and equipment | 43,536 | 43,536 | 43,536 | - | 43,536 | - | - |
Computer Hardware | 115,291 | 115,291 | 95,330 | 9,980 | 105,310 | 9,981 | 19,961 |
Total | $ 158,827 | $ 158,827 | $ 138,866 | $ 9,980 | $ 148,846 | $ 9,981 | $ 19,961 |
The nature of the Copyright Board's activities can result in some large multi-year contracts and obligations whereby the Copyright Board will be committed to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
(in dollars) | 2014 | 2015 | 2016 | 2017 | 2018 and thereafter | Total |
Goods and services | $ 58,526 | $ 6,794 | $ 718 | $ - | $ - | $ 66,038 |
$ 58,526 | $ 6,794 | $ 718 | $ - | $ - | $ 66,038 | |
The Copyright Board of Canada is related as a result of common ownership to all government departments, agencies and Crown corporations. The Copyright Board of Canada enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Copyright Board of Canada is forecasted to receive services, which will be obtained without charge from other government departments as disclosed below.
(in dollars) | Estimated Results 2013 |
Planned Results 2014 |
|
Accommodation | $ 240,246 | $ 253,950 | |
Employer's contribution to the insurance plans | 121,659 | 122,260 | |
Total | $ 361,905 | $ 376,210 |
(in dollars) | Estimated Results 2013 |
Planned Results 2014 |
|
Receivables from other Government departments | $ 62,912 | $ 62,912 | |
Expenses - Other Government departments and agencies | 908,515 | 914,562 | |
Presentation by segment is based on the Copyright Board of Canada's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note four. The following table presents the forecasted expenses incurred and for the main program activities, by major object of expenses. The segment results for the period are as follows:
2014 | ||||
(in dollars) | 2013 Total | Tarrif Setting and Issuance of Licences | Internal Services | Total |
Operating Expenses | ||||
Salaries and employee benefits | $ 2,144,667 | $ 1,745,757 | $ 409,498 | $ 2,155,255 |
Professional and special services | 594,680 | 467,704 | 109,708 | 577,412 |
Accommodation | 240,246 | 205,700 | 48,251 | 253,951 |
Travel | 191,689 | 161,324 | 37,842 | 199,166 |
Information services | 75,255 | 68,676 | 16,109 | 84,785 |
Rental | 90,193 | 67,284 | 15,783 | 83,067 |
Telecommunication services | 49,577 | 44,263 | 10,383 | 54,646 |
utilities, materials and supplies | 49,889 | 42,749 | 10,028 | 52,777 |
Furniture and Furnishings | 9,380 | 3,799 | 891 | 4,690 |
Informatics equipment and software | 13,695 | 14,217 | 3,335 | 17,552 |
Repair and maintenance | 1,851 | 3,688 | 865 | 4,553 |
Amortization | 11,039 | 8,084 | 1,896 | 9,980 |
Postage and freight | 13,282 | 9,730 | 2,282 | 12,012 |
Other | 5,509 | 3,514 | 825 | 4,339 |
Total operating expenses | 3,490,952 | 2,846,489 | 667,696 | 3,514,185 |
Net cost of operations | $ 3,490,952 | $ 2,846,489 | $ 667,696 | $ 3,514,185 |