Financial Statements 2021-2022

Statement of 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, 2022 and all information contained in these statements rests with the management of Polar Knowledge Canada (POLAR). 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 POLAR’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in POLAR’s Departmental Results 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 POLAR 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.

POLAR will be subject to periodic Core Control Audits performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Financial Management.

During 2021-2022, POLAR has continued to make progress towards ensuring that a risk-based departmental system of internal control over financial management is established, monitored and maintained. A multi-phase risk-based assessment plan is being established. The plan is progressing from the documentation of the key internal control processes, through the design and operating effectiveness testing of controls, to the full ongoing monitoring stage. Additional information regarding POLAR’s progress is presented in the annex as required by the Treasury Board Policy on Financial Management.

The financial statements of POLAR have not been audited.

The original version was signed by:

Statement of Financial Position (Unaudited)

As at March 31

(in dollars)	2022	2021
Liabilities
Accounts payable and accrued liabilities (Note 4)	2,901,600	2,193,756
Vacation pay and compensatory leave	574,587	564,641
Employee future benefits (Note 5)	69,781	100,050
Total liabilities	3,545,968	2,858,447
Financial assets
Due from the Consolidated Revenue Fund	2,305,313	1,357,474
Accounts receivable and advances (Note 6)	752,824	1,032,996
Total financial assets	3,058,137	2,390,470
Departmental net debt	487,831	467,977
Non-financial assets
Prepaid expenses	5,593	11,186
Tangible capital assets (Note 7)	1,734,801	1,447,592
Total non-financial assets	1,740,394	1,458,778
Departmental net financial position	1,252,563	990,801

Contractual obligations (Note 8)

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

The original version was signed by:

Statement of Operations and Departmental Net Financial Position (Unaudited)

For the year ended March 31

(in dollars)	Planned Results 2022	2022	2021
Expenses
Polar Science and Knowledge	16,468,307	13,620,878	9,648,603
Internal Services	16,587,277	13,813,605	13,029,183
Total expenses	33,055,584	27,434,483	22,677,786
Revenues
Lease and use of public property	449,211	276,469	293,872
Revenues earned on behalf of Government	-	-	(1,832)
Total revenues	449,211	276,469	292,040
Net cost of operations before government funding and transfers	32,606,373	27,158,014	22,385,746
Government funding and transfers
Net cash provided by Government of Canada		25,812,672	24,834,690
Change in due from Consolidated Revenue Fund		947,839	(3,018,757)
Services provided without charge by other government departments (Note 9)		660,605	571,338
Transfer of capital assets from other government departments		-	-
Transfer of other assets and liabilities (to) / from other government departments		(1,340)	525
Total government funding and transfers		27,419,776	22,387,796
Net cost of operations after government funding and transfers		(261,762)	(2,050)
Departmental net financial position - Beginning of year		990,801	988,751
Departmental net financial position - End of year		1,252,563	990,801

Segmented information (Note 10)

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 dollars)	2022	2021
Net cost of operations after government funding and transfers	(261,762)	(2,050)
Change due to tangible capital assets
Acquisitions of tangible capital assets	563,284	-
Amortization of tangible capital assets	(276,075)	(268,107)
Total change due to tangible capital assets	287,209	(268,107)
Change due to prepaid expenses	(5,593)	(18,458)
Net increase (decrease) in departmental net debt	19,854	(288,615)
Departmental net debt - Beginning of year	467,977	756,592
Departmental net debt - End of year	487,831	467,977

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

Statement of Cash Flows (Unaudited)

For the year ended March 31

(in dollars)	2022	2021
Operating activities
Net cost of operations before government funding and transfers	27,158,014	22,385,746
Non-cash items:
Amortization of tangible capital assets	(276,075)	(268,107)
Services provided without charge by other government departments (Note 9)	(660,605)	(571,338)
Variations in Statement of Financial Position:
(Decrease) increase in accounts receivable and advances	(280,172)	658,923
Decrease in prepaid expenses	(5,593)	(18,458)
Decrease (increase) in accounts payable and accrued liabilities	(707,844)	2,387,412
Decrease (increase) in vacation pay and compensatory leave	(9,946)	237,834
Decrease in employee future benefits	30,269	23,203
Transfer of salary overpayments to other government departments	1,340	(525)
Cash used in operating activities	25,249,388	24,834,690
Capital investing activities
Acquisitions of tangible capital assets	563,284	-
Cash used in capital investing activities	563,284	-
Net cash provided by Government of Canada	25,812,672	24,834,690

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

Notes to the Financial Statements (Unaudited)

For the year ended March 31, 2022

1. Authority and objectives

Polar Knowledge Canada (POLAR) is a federal agency (departmental corporation) that was established with the coming into force of the Canadian High Arctic Research Station Act on June 1, 2015. POLAR is responsible for advancing Canada’s knowledge of the Arctic, strengthening Canadian leadership in polar science and technology, and promoting the development and distribution of knowledge of other circumpolar regions, including Antarctica. POLAR operates the Canadian High Arctic Research Station (CHARS) campus and conducts world-class cutting edge Arctic research out of this extraordinary facility.

The Statement of Operations and Departmental Net Financial Position presents the Core responsibilities and Internal services :

Polar Science and Knowledge: Polar Knowledge Canada is Canada’s polar science agency operating out of the world-class Canadian High Arctic Research Station campus in Cambridge Bay, Nunavut. Polar Knowledge Canada performs and publishes multi-disciplinary polar research. Through its grants and contributions program, it funds external partners such as academia, northern communities and organizations who conduct research and related projects. Polar Knowledge Canada aims to include Indigenous and local knowledge wherever possible, and increases domestic and international research coordination and collaboration by leveraging resources with partners. Through workshops, conferences, social media, and other tools, Polar Knowledge Canada shares and promotes the exchange of knowledge across polar scientific and policy communities and the general public. Throughout all of its core activities, Polar Knowledge Canada aims to fund and train the next generation of polar research personnel, with a focus on northern youth.

Internal Services: Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities are; Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services and Acquisition Services.

2. Summary of significant accounting policies

These financial statements are prepared using POLAR's accounting policies stated below, which 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:

(a) Parliamentary authorities

POLAR is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to POLAR 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 Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the "Expenses" and "Revenues" section of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2021-2022 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2021-2022 Departmental Plan.

(b) Net cash provided by Government of Canada

POLAR operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by POLAR is deposited to the CRF, and all cash disbursements made by POLAR 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 to the CRF

Amounts due from 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 POLAR is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues

Revenues from the lease and use of public property are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge POLAR's liabilities. While the President and Chief Executive Officer is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

(e) Expenses

Expenses are recorded on the accrual basis:

• Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
• Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
• Services provided without charge by other government departments for employer contributions to the health and dental insurance plans are recorded as operating expenses at their carrying value.

(f) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. POLAR’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. POLAR’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.
• Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(g) Accounts receivable

Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.

(h) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 7. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

(i) Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(j) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

(k) Related party transactions

Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

Inter-entitytransactionsaretransactionsbetweencommonlycontrolledentities.Inter-entitytransactions,otherthanrestructuringtransactions,arerecorded on a gross basis and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

POLAR receives its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, POLAR 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 net cost of operations to current year authorities used

(in dollars)	2022	(Note 11) 2021
Net cost of operations before government funding and transfers	27,158,014	22,385,746
Revenues received pursuant to subsection 6(2) of the Canadian High Arctic Research Station Act	276,469	293,063
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(660,605)	(571,338)
Amortization of tangible capital assets	(276,075)	(268,107)
Decrease (increase) in vacation pay and compensatory leave	(9,946)	237,834
Decrease in employee future benefits	30,269	23,203
Refund of prior years' expenditures	246,719	132,810
Other	-	(1)
Total items affecting net cost of operations but not affecting authorities	(669,638)	(445,599)
Adjustments for items not affecting net cost of operations but affecting authorities:
Variation in prepaid expenses	(5,593)	(18,458)
Acquisition of tangible capital assets	563,284	-
Variation in advances	12,762	60,519
Total items not affecting net cost of operations but affecting authorities	570,453	42,061
Current year authorities used	27,335,298	22,275,271

(b) Authorities provided and used

(in dollars)	2022	2021
Authorities provided:
Vote 1 – Program expenditures	30,846,899	30,758,027
Statutory amounts:
Revenues received pursuant to subsection 6(2) of the Canadian High Arctic Research Station Act	569,532	293,063
Contributions to employee benefits plan	1,199,536	1,113,593
Refunds of amounts credited to revenues in previous years	-	1,023
Total authorities	32,615,967	32,165,706
Less:
Lapsed authorities	(4,711,137)	(9,597,372)
Authorities available in future years	(569,532)	(293,063)
Current year authorities used	27,335,298	22,275,271

4. Accounts payable and accrued liabilities

The following table presents details of POLAR's accounts payable and accrued liabilities:

(in dollars)	2022	2021
Accounts payable - Other government departments and agencies	435,884	501,266
Accounts payable - External parties	1,465,631	712,075
	1,901,515	1,213,341
Accrued liabilities	1,000,085	980,415
Total accounts payable and accrued liabilities	2,901,600	2,193,756

5. Employee future benefits

(a) Pension benefits

POLAR's employees participate in the Public Service Pension Plan (the Plan), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and POLAR contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to the Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2021-2022 expense amounts to $815,313 ($759,916 in 2020-2021). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2020-2021) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2020-2021) the employee contributions.

POLAR's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

(b) Severance benefits

Severance benefits provided to POLAR's employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2022, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities

The changes in the obligations during the year were as follows:

(in dollars)	2022	2021
Accrued benefit obligation - Beginning of year	100,050	123,254
Expense for the year	(30,269)	26,697
Benefits paid during the year	-	(49,901)
Accrued benefit obligation - End of year	69,781	100,050

6. Accounts receivable and advances

The following table presents details of POLAR's accounts receivable and advances:

(in dollars)	2022	2021
Receivables - Other government departments and agencies	595,990	836,348
Receivables - External parties	83,918	115,815
Employee advances	72,916	80,833
	752,824	1,032,996
Allowance for doubtful accounts on receivables from external parties	-	-
Total accounts receivable and advances	752,824	1,032,996

7. Tangible capital assets

Amortization of tangible capital assets is done on a straight line basis over the estimated useful like of the assets as follows:

Asset Class	Amortization Period
Machinery and equipment	5 years
Informatics hardware	5 years
Informatics software	3 years
Other equipment, including furniture	5 to 10 years
Ships and boats	10 years
Motor vehicles (Non-military)	4 to 7 years
Other vehicles	10 years
Leasehold improvements	Lesser of the remaining term of lease or useful life of the improvement

Cost

(in dollars)	Opening Balance	Acquisitions	Adjustments	Disposals and Write-offs	Closing Balance
Machinery and equipment	1,408,719	10,784	10,810	-	1,430,313
Informatics hardware	62,221	-	-	-	62,221
Other equipment, including furniture	23,504	64,300	-	-	87,804
Ships and Boats	45,515	455,040	-	-	500,555
Motor Vehicles (Non-Military)	291,092	-	-	-	291,092
Other Vehicles	341,333	33,160	-	-	374,493
Leasehold improvements	539,328	-	-	-	539,328
Total	2,711,712	563,284	10,810	-	3,285,806

Accumulated Amortization

(in dollars)	Opening Balance	Acquisitions	Adjustments	Disposals and Write-offs	Closing Balance
Machinery and equipment	618,451	138,103	10,810	-	767,364
Informatics hardware	37,333	12,444	-	-	49,777
Other equipment, including furniture	15,277	7,173	-	-	22,450
Ships and Boats	18,701	15,927	-	-	34,628
Motor Vehicles (Non-Military)	278,473	12,619	-	-	291,092
Other Vehicles	76,498	34,962	-	-	111,460
Leasehold improvements	219,387	54,847	-	-	274,234
Total	1,264,120	276,075	10,810	-	1,551,005

Net book value

(in dollars)	2022	2021
Machinery and equipment	662,949	790,268
Informatics hardware	12,444	24,888
Other equipment, including furniture	65,354	8,227
Ships and Boats	465,927	26,814
Motor Vehicles (Non-Military)	-	12,619
Other Vehicles	263,033	264,835
Leasehold improvements	265,094	319,941
Total	1,734,801	1,447,592

8. Contractual obligations

The nature of POLAR’s activities can result in some large multi-year contracts and obligations whereby POLAR will be obligated to make future payments in order to carry out its transfer payment programs or when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in dollars)	2023	2024	2025	2026	2027 and subsequent	Total
Transfer payments	5,129,175	3,593,992	664,937	-	-	9,388,104
Other obligations	3,903,245	881,514	357,192	318,947	-	5,460,898
Total	9,032,420	4,475,506	1,022,129	318,947	-	14,849,002

9. Related party transactions

POLAR is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

POLAR enters into transactions with these entities in the normal course of business and on normal trade terms.

a) Common services provided without charge by other government departments

During the year, POLAR received services without charge from certain common service organizations, related to the employer’s contribution to the health and dental insurance plans. These services provided without charge have been recorded at the carrying value in POLAR’s Statement of Operations and Departmental Net Financial Position as follows:

(in dollars)	2022	2021
Employer's contribution to the health and dental insurance plans	660,605	571,338
Total	660,605	571,338

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada are not included in the Department’s Statement of Operations and Departmental Net Financial Position.

(b) Other transactions with other government departments and agencies

(in dollars)	2022	2021
Accounts receivable	595,990	836,348
Accounts payable	435,884	501,266
Expenses	6,507,274	6,704,849

Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

10. Segmented Information

Presentation by segment is based on POLAR's core responsibility. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues for the core responsibility, by major object of expense and type of revenue. The segment results for the period are as follows:

Accounts payable and Accrued liabilities (note 4)	Polar Science and Knowledge	Internal Services	2022	2021
Transfer payments
Other Levels of Government	2,962,856	-	2,962,856	1,949,779
Non-profit institutions and other organizations	1,206,424	-	1,206,424	400,112
Indigenous peoples	2,152,297	-	2,152,297	584,597
Industry	178,271	-	178,271	1,201,072
Individuals	132,000	-	132,000	-
Total transfer payments	6,631,848	-	6,631,848	4,135,560
Operating expenses
Salaries and employee benefits	4,996,884	5,418,562	10,415,446	9,330,365
Professional services	917,030	1,249,137	2,166,167	1,914,143
Transportation and telecommunications	516,493	1,087,138	1,603,631	1,278,442
Rentals	13,241	1,239,214	1,252,455	1,204,137
Repairs and maintenance	75	2,928,108	2,928,183	2,604,902
Utilities, materials and supplies	84,365	1,657,997	1,742,362	1,501,179
Machinery and equipment	155,441	159,806	315,247	173,224
Amortization of tangible capital assets	208,784	67,291	276,075	268,107
Information	95,209	8,352	103,561	195,825
Other	1,508	(2,000)	(492)	71,902
Total Operating expenses	6,989,030	13,813,605	20,802,635	18,542,226
Total expenses	13,620,878	13,813,605	27,434,483	22,677,786
Revenues
Lease and use of public property	187,216	89,253	276,469	293,872
Revenues earned on behalf of Government	-	-	-	(1,832)
Total revenues	187,216	89,253	276,469	292,040
Net cost from continuing operations	13,433,662	13,724,352	27,158,014	22,385,746

11. Comparative information

Certain comparative figures have been reclassified to conform to the current year’s presentation.

Annex: Internal Control Over Financial Reporting

1. Introduction

As a new department, created in 2015, Polar Knowledge Canada (POLAR) is continually strengthening its system of internal control as the organization matures, its governance structures are refined, and it approaches steady-state operations. In support of an effective system of internal control, POLAR assesses the performance of its financial controls to ensure that:

• financial arrangements or contracts are entered into only when sufficient funding is available;
• payments for goods and services are made only when the goods or services have been received or the conditions of contracts or other arrangements have been satisfied; and
• payments have been properly authorized.

POLAR will leverage the results of the periodic core control audits performed by the Office of the Comptroller General.

Since 2018-19, the department has undertaken the requisite preliminary steps towards enabling the structured ongoing assessment of the performance of its financial controls by documenting key business processes.

Key control points for these business processes, as well as entity level controls and IT general controls, were identified and their de2ign effectiveness assessed. That assessment identified some control deficiencies resulting in continued attention being directed towards remediating those deficiencies.

2. Remediation activities

Activities continue to be undertaken to address risks related to control deficiencies noted during the design effectiveness testing.

3. Assessment plan

POLAR intends to continue to monitor the performance of its system of internal control, with a focus on the core controls related to financial transactions.