Status of Women Canada financial statements (unaudited) for the period of April 1, 2018 to December 12, 2018

Statement of management responsibility including internal control over financial reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the period of April 1, 2018 to December 12, 2018, and all information contained in these financial statements rests with the management of Status of Women Canada. These financial statements have been prepared using the Government of Canada Accounting Handbook, which is 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 Status of Women Canada’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Women and Gender Equality Canada 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 Status of Women Canada 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.

Status of Women Canada is subject to periodic Core Control Audits performed by the Office of the Comptroller General and uses the results of such audits to adhere to Treasury Board Policy on Financial Management.

A Core Control Audit was performed in 2011-2012 by the Office of the Comptroller General of Canada. The Audit Report and related Management Action Plan are posted on the departmental website at www.cfc-swc.gc.ca/trans/account-resp/pr/cca-vmc/index-en.html.

The financial statements of Status of Women Canada have not been audited.

Statement of financial position (unaudited)
As at

(in dollars)

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

Statement of operations and net financial position (unaudited)
For the period of April 1, 2018 to December 12, 2018

(in dollars)

Table notes:
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 period of April 1, 2018 to December 12, 2018

(in dollars)

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

Statement of cash flows (unaudited)
For the period of April 1, 2018 to December 12, 2018

(in dollars)

Table note:
The accompanying notes form an integral part of these financial statements

Notes to the financial statements (unaudited)
For the period of April 1, 2018 to December 12, 2018

1. Authority and objectives

Status of Women Canada (SWC) was established by the Government of Canada in 1976 to "co-ordinate policy with respect to the status of women and administer related program" (Order in Council 1976-779). The mandate of SWC was further guided by the Canadian Charter of Rights and Freedoms, as well as by Canada's adherence to the Convention on the Elimination of all Forms of Discrimination against Women. SWC played a key role in fulfilling the Government of Canada's commitment to building a society that is inclusive and respectful of all Canadians by promoting equality and the full participation of women in Canada.

On December 13, 2018, SWC became Women and Gender Equality Canada in accordance with the Budget Implementation Act, 2018, No. 2.

Programs

Expertise and Outreach: Through its Expertise and Outreach program, SWC provides tools, expertise and advice: (1) to federal organizations and central agencies on their proposals to Cabinet and the Treasury Board, (2) to further develop the federal government’s intrinsic capacity to conduct GBA+ analyses at all stages of policy development and program delivery, including gender-based budgeting; (3) to provincial, territorial and local governments, private sector and civil society organizations that have the levers to address gender equality issues through policy, programming and organizational practices; and (4) to increase public awareness through outreach to the general public.

Community Action and Innovation: Through its Community Action and Innovation program, SWC provides grants and contributions to organizations to implement projects that are designed to strengthen the sector working to advance gender equality and bring some degree of systemic change in the underlying factors that perpetuate inequality at a local and regional level.

Internal Services: Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories 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 have been prepared using the Government’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

SWC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to SWC 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" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2018-2019 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 2018-2019 Departmental Plan.

(b) Net cash provided by Government of Canada

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

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

(d) Revenues

Revenues from regulatory fees are recognized based on the services provided in the year.

(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 accommodation, employer contributions to the health and dental insurance plans, legal services and workers’ compensation are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. SWC’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. SWC’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 equipment and other capital property are capitalized as tangible capital assets and 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 $2,500 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) 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 December 12, 2018. 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 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.

(j) Related party transactions

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

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for certain services received on a without charge basis that are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

SWC receives most of 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, SWC 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)

b) Authorities provided and used

(in dollars)

4. Accounts payable and accrued liabilities

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

(in dollars)

5. Employee future benefits

a) Pension benefits

SWC’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% per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and SWC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups - Group 1 related 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 expense amounts to $1,296,607 ($1,188,397 in 2017-2018). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2017-2018) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2017-2018) the employee contributions.

SWC’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan’s sponsor.

(b) Severance benefits

Severance benefits provided to SWC’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 December 12, 2018, substantially all settlements for immediate cash out were completed.

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

(in dollars)

6. Accounts receivable and advances

The following table presents details of SWC's accounts receivable and advance balances:

(in dollars)

7. Tangible capital assets

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

8. Related party transactions

SWC 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.

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

(in dollars)

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 and audit services provided by the Office of the Auditor General, are not included in the SWC’s Statement of Operations and Departmental Net Financial Position.

(b) Other transactions with other government departments and agencies

(in dollars)

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

9. Transfers to an other government department

On December 13, 2018, SWC became Women and Gender Equality Canada in accordance with the Budget Implementation Act, 2018, No. 2, and transferred its operations including the stewardship responsibility for the assets and liabilities. Accordingly, SWC transferred the following assets and liabilities to Women and Gender Equality Canada on December 13, 2018:

(in dollars)

During the transition period, SWC continued to administer the transferred activities on behalf of Women and Gender Equality Canada. The administered revenues and expenses amounted to $15 and to $38,895,073 respectively, for the year. These revenues and expenses are not recorded in these financial statements.

10. Segmented information

Presentation by segment is based on SWC's program alignment architecture. 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 generated for the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

(in dollars)

11. Comparative information

Comparative figures are for April 1, 2017 to March 31, 2018 and current year figures are for April 1, 2018 to December 12, 2018.