This archived Web page remains online for reference, research or recordkeeping purposes. This page will not be altered or updated. Web pages that are archived on the Internet are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats of this page on the Contact Us page.
Library and Archives Canada is an institution within the Government of Canada and was established on May 24, 2004 as a result of the amalgamation of the former National Library of Canada and National Archives of Canada. Library and Archives Canada's role was confirmed in the 2004 Library and Archives of Canada Act. The Act assigns discretionary power to the Librarian and Archivist of Canada in the attainment of Library and Archives Canada's objects. Under the Act, no record under the control of a government or ministerial institution may be destroyed prior to receiving consent from the Librarian and Archivist of Canada and those records considered to be of historic or archival importance to the Librarian and Archivist of Canada, shall be transferred to the care and control of the Librarian and Archivist of Canada.
Library and Archives Canada is considered a Schedule I.1 organization within the Financial Administration Act and reports to Parliament through the Minister of Canadian Heritage.
The mandate of Library and Archives Canada is to preserve the documentary heritage of Canada for the benefit of present and future generations; to serve as a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society; to facilitate in Canada cooperation among the communities involved in the acquisition, preservation and diffusion of knowledge; and to serve as the continuing memory of the Government of Canada and its institutions.
The future-oriented statement of operations has been prepared on the basis of the government priorities and the plans of Library and Archives Canada as described in the Report on Plans and Priorities.
The main assumptions are as follows:
These assumptions were adopted as at March 15th, 2011.
While every attempt has been made to accurately forecast final results for the remainder of 2010-2011 and for 2011-2012, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.
In preparing these financial statements, Library and Archives Canada has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements 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 Report on Plans and Priorities is presented, Library and Archives 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 information has been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
(a) Parliamentary authorities - Library and Archives Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to Library and Archives Canada do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the bases of reporting.
(b) Net Cash Provided by Government - Library and Archives Canada operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by Library and Archives Canada is deposited to the CRF and all cash disbursements made by Library and Archives Canada are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.
(c) Amounts due from/to the CRF - Amounts due from/to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that Library and Archives Canada is entitled to draw from the CRF without further appropriations to discharge its liabilities.
(d) Revenues are presented on an accrual basis:
(e) Expenses - are presented on an accrual basis:
(f) Employee future benefits
(g) Accounts receivables and advances
Accounts receivables and advances are stated at the lower of cost and net recoverable; a valuation allowance is recorded for receivables where recovery is considered uncertain.
(h) Contingent liabilities
Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
(i) Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Library and Archives Canada does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:
|Asset Class||Amortization Period|
|Machinery and equipment||5-15 years|
|Informatics hardware||3-10 years|
|Informatics purchased and developed software||2-7 years|
|Other equipment, including furniture||5-10 years|
|Motor vehicles||3-15 years|
|Leasehold improvements||Lesser of the remaining term of lease or useful life of the improvement|
Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
The collections of Library and Archives Canada are presented on the Statement of Financial Position at a nominal value of $1,000. Items purchased for the collections are recorded as an expense in the year of acquisition. Items collected from the Federal government are not recorded on the Statement of Financial Position.
The Department receives most of its funding through expenditure authorities provided by Parliament. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Department has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:
|(a) Authorities requested||Forecast
|Vote 55||$ 90,855||$ 105,627|
|Changes in Employee Benefit Plan Expenses||670||-|
|Other forecast changes to Statutory amounts||207||-|
|Forecast authorities available||$ 116,737||$ 130,477|
|(b) Reconciliation of net cost of operations to
|Net cost of operations||$ 151,938||$ 165,476|
|Adjustments for items affecting net cost of operations
but not affecting authorities:
|Services provided without charge by other government departments||(48,053)||(48,363)|
|Amortization of tangible capital assets||(4,154)||(4,654)|
|Decrease in employee future benefits||500||-|
|Decrease in vacation pay and compensatory leave||250||-|
|Refunds of previous years' expenditures||25||36|
|Revenue not available for spending||112||112|
|Loss on disposal and write-down of tangible capital assets||(20)||(4,500)|
|Adjustments for items not affecting net cost of operations
but affecting authorities:
|Add: Acquisitions of tangible capital assets||13,350||6,670|
|Forecast lapse (eg. Operating, Frozen allotments)||2,789||15,700|
|Forecast authorities available||$ 116,737||$ 130,477|
Library and Archives Canada preserves the collective memory of the nation and of the Government of Canada and contributes to the protection of rights and the enhancement of a sense of national identity.
While the nominal valuation attributed to the collection in these Financial Statements is aligned with Canadian Public Sector reporting standards, this is not representative of the historical or market value of the collection. Although not capitalized like other assets such as buildings or equipment, these irreplaceable treasures have inestimable legal, evidentiary, cultural and, indeed, monetary value for Canadians now and for generations to come. These include documentary material transferred at no charge from government departments, publications received through Legal Deposit, materials purchased and donated materials for which receipts for tax purposes may have been issued.
|Accrued benefit obligation, beginning of year||$ 15,990||$ 15,990|
|Expense for the year||1,073||1,062|
|Benefits paid during the year||(1,572)||(1,062)|
|Accrued benefit obligation, end of year||$ 15,491||$ 15,990|
Library and Archives Canada is related as a result of common ownership to all Government departments, agencies, and Crown corporations. Library and Archives Canada enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, during the year, Library and Archives Canada received common services which were obtained without charge from other Government departments as disclosed below.
(a) Services provided without charge to Library and Archives Canada:
During the year Library and Archives Canada received services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded in Library and Archives Canada's Statement of Operations as follows:
|Accommodation||$ 42,227||$ 42,227|
|Employer's contribution to the health and dental insurance plans||5,787||6,095|
|$ 48,053||$ 48,363|
The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of others without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada (PWGSC) and audit services provided by the Office of the Auditor General, are not included as an expense in Library and Archives Canada's Statement of Operations. Similarly, Library and Archives Canada manages records in all media on behalf of more than 90 federal government organizations across the country.
(b) Other transactions with related parties:
|Expenses - Other Government departments and agencies||$ 15,002||$ 14,507|
|Revenues - Other Government departments and agencies||74||73|
The following table presents details of forecast expenses and revenues by category:
|Transfer payments to non profit organizations||$ 1,746||$ 1,744|
|Salary and employee benefits||88,501||90,429|
|Professional and special services||7,040||9,846|
|Amortization of tangible capital assets (note 5)||4,154||4,654|
|Utilities, materials and supplies||1,206||1,806|
|Repair and maintenance||1,365||2,752|
|Acquisition of machinery and equipment||1,623||2,475|
|Loss on disposal and write-down of tangible assets||20||4,500|
|Total operating expenses||150,722||164,240|
|Sales of goods and information products||375||365|
|Gain on disposal of non-capital assets||100||90|
|Net Cost of Operations||$ 151,938||$ 165,476|
Comparative figures have been reclassified to conform to the current year's presentation. In 2011-12, Library and Archives Canada will adopt a new Program Activity Architecture. The information presented in these forecasted financial statements is based on this new architecture. However, since the available historical financial information does not allow for the preparation of forecasted expenses by category for this new architecture, the segmented information is not presented in these financial statements.