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, 2013, 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, 2013 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.

William F. Pentney
Deputy Minister of Justice and
Deputy Attorney General of Canada

Ottawa, Canada
August 30, 2013

Marie-Josée Thivierge
Assistant Deputy Minister
Management Sector, and
Chief Financial Officer

Statement of Financial Position (unaudited)
As at March 31
(In thousands of dollars)
  2013 2012
Liabilities
Accounts payable and accrued liabilities (Note 4) 68,905 62,966
Family Law account (Note 5) 4,332 3,173
Transfer payments payable 375,184 429,873
Vacation pay and compensatory leave 19,620 19,253
Employee future benefits (Note 6) 83,007 87,076
Total liabilities 551,048 602,341
Financial assets
Due from the Consolidated Revenue Fund 395,336 451,461
Accounts receivable and advances (Note 7) 37,522 23,997
Total gross financial assets 432,858 475,458
Financial assets held on behalf of Government
Accounts receivable and advances (Note 7) (11,432) (10,181)
Total net financial assets 421,426 465,277
Departmental net debt 129,622 137,064
Non-financial assets
Prepaid expenses 88 124
Tangible capital assets (Note 8) 50,298 51,530
Total non-financial assets 50,386 51,654
Departmental net financial position (79,236) (85,410)

Notes:

  • Contingent liabilities (Note 9)
  • Contractual obligations (Note 10)

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

William F. Pentney
Deputy Minister of Justice and
Deputy Attorney General of Canada

Ottawa, Canada
August 30, 2013

Marie-Josée Thivierge
Assistant Deputy Minister
Management Sector, and
Chief Financial Officer

Statement of Operations and Departmental Net Financial Position (unaudited)
For the year ended March 31
(In thousands of dollars)
  2013
Planned Results
2013
Actuals
2012
Expenses

Legal Services to Government Program

516,039 479,148 481,735
Stewardship of the Canadian Legal Framework 455,709 459,432 454,452
The Office of the Federal Ombudsman for Victims of Crime 1,405 1,294 1,346
Internal Services 178,264 169,525 183,668
Total expenses 1,151,417 1,109,399 1,121,201
Revenues
Legal services 354,355 332,753 349,752
Common Services 9,140 8,062 6,145
Family Law fees 9,087 6,764 7,653
Other revenues - 634 620
Revenues earned on behalf of Government (9,087) (7,398) (8,273)
Total revenues 363,495 340,815 355,897
Net cost from continuing operations 787,922 768,584 765,304
Transferred Operations (Note 12)
Expenses - - 7,447
Net cost of transferred operations   - 7,447
Net cost of operations before government funding and transfers 787,922 768,584 772,751
Government Funding and Transfers
Net cash provided by Government 709,879 738,332 663,710
Change in due from the Consolidated Revenue Fund (18,331) (56,125) 27,043
Services provided without charge by other government departments (Note 11) 96,718 92,551 86,419
Transfer of assets to other government departments (Note 12) - - (799)
Net cost or (revenue) of operations after government funding and transfers (344) (6,174) (3,622)
Departmental net financial position - Beginning of year (85,410) (85,410) (89,032)
Departmental net financial position - End of year (85,066) (79,236) (85,410)

Note:

Segmented Information (Note 13)

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)
  2013
Planned Results
2013 2012
Net cost of operations after government funding and transfers (344) (6,174) 3,622
Change due to tangible capital assets
Acquisitions of tangible capital assets (Note 8) 16,722 12,954 20,935
Amortization of tangible capital assets (Note 8) (13,061) (14,186) (12,386)
Proceeds from disposal of tangible capital assets - - (136)
Transfer to other government departments (Note 12) - - (799)
Total change due to tangible capital assets 3,661 (1,232) 7,614
Change due to prepaid expenses (70) (36) 54
Net increase in departmental net debt 3,247 (7,442) 4,046
Departmental net debt - Beginning of year 137,064 137,064 133,018
Departmental net debt - End of year 140,311 129,622 137,064

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)
  2013 2012
Operating activities
Net cost of operations before government funding and transfers 768,584 772,751
Non-cash items
Amortization of tangible capital assets (Note 8) (14,186) (12,386)
Services provided without charge by other government departments (Note 11) (92,551) (86,419)
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and advances 12,274 (382)
(Decrease) increase in prepaid expenses (36) 54
Decrease (increase) in liabilities 51,293 (30,707)
Cash used by operating activities 725,378 642,911
Capital investment activities
Acquisitions of tangible capital assets (Note 8) 12,954 20,935
Proceeds from disposal of tangible capital assets - (136)
Cash used by capital investment activities 12,954 20,799
Net cash provided by Government 738,332 663,710

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

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