Financial Statements

Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2012, and all information contained in these statements rests with the management of the Department of Justice. These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Department of Justice’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Department of Justice’s Departmental Performance Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Department of Justice and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2012 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Department of Justice’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Department of Justice's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the deputy head of the Department of Justice.

The financial statements of the Department of Justice have not been audited.

Daniel Schnob
Chief Financial Officer

Myles J. Kirvan
Deputy Minister of Justice and Deputy Attorney General of Canada

Ottawa, Canada
August 31, 2012

 

Statement of Financial Position (unaudited)
As at March 31
(In thousands of dollars)
  2012 2011
Restated
(note 14)
Liabilities
Accounts payable and accrued liabilities (Note 4) 62,966 63,667
Family Law account (Note 5) 3,173 4,962
Transfer payments payable 429,873 392,331
Vacation pay and compensatory leave 19,253 19,157
Employee future benefits (Note 6) 87,076 91,517
Total liabilities 602,341 571,634
Financial assets
Due from the Consolidated Revenue Fund 451,461 424,418
Accounts receivable and advances (Note 7) 23,997 24,488
Total gross financial assets 475,458 448,906
Financial assets held on behalf of Government
Accounts receivable and advances (Note 7) (10,181) (10,290)
Total net financial assets 465,277 438,616
Departmental net debt 137,064 133,018
Non-financial assets
Prepaid expenses 124 70
Tangible capital assets (Note 8) 51,530 43,916
Total non-financial assets 51,654 43,986
Departmental net financial position (85,410) (89,032)

The accompanying notes form an integral part of these financial statements.

Daniel Schnob
Chief Financial Officer

Myles J. Kirvan
Deputy Minister of Justice and Deputy Attorney General of Canada

Ottawa, Canada
August 31, 2012

 

Statement of Operations and Departmental Net Financial Position (unaudited)
For the year ended March 31
(In thousands of dollars)
2012
Planned Results
2012
Actuals
2011
Restated
note 14)
Expenses
Services to government 513,836 481,735 484,068
Justice policies, laws and programs 475,516 454,452 458,526
The Office of the Federal Ombudsman for Victims of Crime - 1,346 1,394
Internal Services 169,303 183,668 176,495
Total expenses 1,158,655 1,121,201 1,120,483
Revenues
Legal services 334,798 349,752 328,641
Family Law fees 9,156 7,653 8,091
Common Services - 6,145 6,277
Other revenues - 620 914
Revenues earned on behalf of Government (9,156) (8,273) (9,005)
Total revenues 334,798 355,897 334,918
Net cost from continuing operations 823,857 765,304 785,565
Transferred Operations (Note 12)
Expenses - 7,447 12,789
Net cost of transferred operations   7,447 12,789
Net cost of operations before government funding and transfers 823,857 772,751 798,354
Government Funding and Transfers
Net cash provided by Government   663,710 725,345
Change in due from the Consolidated Revenue Fund   27,043 (20,497)
Services provided without charge by other government departments (Note 11)   86,419 85,396
Transfer of assets to other government departments (Note 12)   (799) -
Net cost or (revenue) of operations after government funding and transfers   (3,622) 8,110
Departmental net financial position - Beginning of year   (89,032) (80,922)
Departmental net financial position - End of year   (85,410) (89,032)

The accompanying notes form an integral part of these financial statements.

Statement of Change in Departmental Net Debt (unaudited)
For the year ended March 31
(In thousands of dollars)
  2012 2011
Net cost of operations after government funding and transfers (3,622) 8,110
Change due to tangible capital assets
Acquisitions of tangible capital assets (Note 8) 20,935 15,023
Amortization of tangible capital assets (Note 8) (12,386) (11,389)
Proceeds from disposal of tangible capital assets (136) (11)
Gain on disposal of capital assets - 11
Transfer to other government departments (Note 12) (799) -
Total change due to tangible capital assets 7,614 3,634
Change due to prepaid expenses 54 (15)
Net increase in departmental net debt 4,046 11,729
Departmental net debt - Beginning of year 133,018 121,289
Departmental net debt - End of year 137,064 133,018

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (unaudited)
For the year ended March 31
(In thousands of dollars)
2012 2011
Restated
note 14)
Operating activities
Net cost of operations before government funding and transfers 772,751 798,354
Non-cash items
Amortization of tangible capital assets (Note 8) (12,386) (11,389)
Gain on disposal of capital assets - 11
Services provided without charge by other government departments (Note 11) (86,419) (85,396)
Variations in Statement of Financial Position
Decrease in accounts receivable and advances (382) (4,953)
Increase (decrease) in prepaid expenses 54 (15)
(Increase) decrease in liabilities (30,707) 13,721
Cash used by operating activities 642,911 710,333
Capital investment activities
Acquisitions of tangible capital assets (Note 8) 20,935 15,023
Proceeds from disposal of tangible capital assets (136) (11)
Cash used by capital investment activities 20,799 15,012
Net cash provided by Government 663,710 725,345

The accompanying notes form an integral part of these financial statements.

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