Financial Statements of Transport Canada (Unaudited) for the year ended March 31, 2021

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, 2021, and all information contained in these financial statements rests with the management of Transport Canada. These financial statements have been prepared by management using the Government of Canada'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 Transport Canada’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in Transport Canada’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 Transport 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.

A risk-based assessment of the system of ICFR for the year ended March 31, 2021 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The effectiveness and adequacy of Transport Canada’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of Transport Canada’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 Minister of Transport Canada.

The financial statements of Transport Canada have not been audited.

TRANSPORT CANADA

Statement of Financial Position (Unaudited)
As of March 31
(in thousands of dollars)

	2021	2020
Liabilities
Accounts payable and accrued liabilities (Note 4)	582,308	566,812
Vacation pay and compensatory leave	66,147	42,473
Environmental liabilities (Note 5)	233,473	250,208
Deferred revenue (Note 6)	3,955	40,630
Lease obligation for tangible capital assets (Note 7)	388,559	414,846
Employee future benefits (Note 8)	19,586	23,108
Contingent liabilities (Note 15)	24,416	6,496
Total net liabilities	1,318,444	1,344,573
Financial assets
Due from Consolidated Revenue Fund	455,022	380,755
Accounts receivable and advances (Note 9)	83,282	64,501
Loans receivable (Note 10)	1,895	1,930
Total gross financial assets	540,199	447,186
Financial assets held on behalf of Government
Accounts receivable and advances (Note 9)	(55,298)	(28,746)
Loans receivable (Note 10)	(1,895)	(1,930)
Total financial assets held on behalf of Government	(57,193)	(30,676)
Total net financial assets	483,006	416,510
Departmental net debt	835,438	928,063
Non-financial assets
Prepaid expenses	2,809	750
Consumable parts (Note 11)	14,603	14,120
Tangible capital assets (Note 12)	2,934,771	2,802,893
Total non-financial assets	2,952,183	2,817,763
Departmental net financial position (Note 13)	2,116,745	1,889,700

Contractual obligations and contractual rights (Note 14)
Contingent liabilities and contingent assets (Note 15)

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

TRANSPORT CANADA

Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021 Planned Results	2021	2020
Expenses (Note 18)
An Efficient Transportation System	947,055	661,410	683,281
A Safe and Secure Transportation System	562,261	590,169	562,109
A Green and Innovative Transportation System	293,135	334,210	404,085
Internal Services	219,228	272,298	228,324
Specified purpose accounts (Note 13)	7,432	3,568	6,479
Expenses incurred on behalf of Government	(7,432)	(3,568)	(6,479)
Total expenses	2,021,679	1,858,087	1,877,799
Revenues
Monitoring and enforcement revenues	53,950	47,621	46,629
Aircraft maintenance and flying services	39,179	37,293	35,839
Rentals and concessions	8,877	26,869	27,915
Specified purpose accounts (Note 13)	33,754	16,615	34,089
Transport facilities user fees	13,719	8,835	14,155
Other	8,638	3,184	762
Leases of property	434,631	(12,271)	381,368
Revenues earned on behalf of Government	(519,952)	(56,760)	(459,012)
Total revenues	72,796	71,386	81,745
Net cost of operations	1,948,883	1,786,701	1,796,054
Government funding and transfers
Net cash provided by Government of Canada		1,834,724	1,564,783
Change in due from Consolidated Revenue Fund		74,267	61
Services provided without charge by other government departments (Note 16)		104,825	105,081
Transfer of assets (to)/from other government departments (Note 12 and Note 17)		(70)	(426)
Net cost of operations after government funding and transfers		(227,045)	126,555
Departmental net financial position – Beginning of year		1,889,700	2,016,255
Departmental net financial position – End of year		2,116,745	1,889,700

Segmented information (Note 18)

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

TRANSPORT CANADA

Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021	2020
Net cost of operations after government funding and transfers	(227,045)	126,555
Change due to tangible capital assets
Acquisition of tangible capital assets (Note 12)	303,731	175,094
Amortization of tangible capital assets (Note 12)	(153,520)	(139,652)
Proceeds from disposal of tangible capital assets	(30,975)	(16,841)
Net gain (loss) on disposal of tangible capital assets (Note 18)	12,437	(24,265)
Adjustments to capital assets (Note 12(a))	275	3,427
Transfer (to)/from other government departments (Note 17)	(70)	(426)
Total change due to tangible capital assets	131,878	(2,663)
Change due to consumable parts (Note 11)	483	25
Change due to prepaid expenses	2,059	(556)
Net increase in departmental net debt	(92,625)	123,361
Departmental net debt – Beginning of year	928,063	804,702
Departmental net debt – End of year	835,438	928,063

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

TRANSPORT CANADA

Statement of Cash Flows (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021	2020
Operating activities
Net cost of operations	1,786,701	1,796,054
Non-cash items:
Amortization of tangible capital assets (Note 12)	(153,520)	(139,652)
Adjustments to capital assets (Note 12(a))	275	3,427
Services provided without charge by other government departments (Note 16)	(104,825)	(105,081)
Gain (loss) on disposal of tangible capital assets (Note 18)	12,437	(24,265)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances (Note 9)	(7,771)	22,094
Increase (decrease) in prepaid expenses	2,059	(556)
Increase (decrease) in consumable parts (Note 11)	483	25
Decrease (increase) in accounts payable and accrued liabilities (Note 4)	(15,496)	(109,985)
Increase in vacation pay and compensatory leave	(23,674)	(6,733)
Decrease (increase) in environmental liabilities (Note 5)	16,735	(21,910)
Decrease (increase) in deferred revenue (Note 6)	36,675	(33,751)
Decrease in employee future benefits (Note 8)	3,522	111
Decrease (increase) in contingent liabilities (Note 15)	(17,920)	1,609
Cash used in operating activities	1,535,681	1,381,387
Capital investing activities
Acquisition of tangible capital assets (Note 12)	303,731	175,094
Proceeds from disposal of tangible capital assets	(30,975)	(16,841)
Cash used in capital investing activities	272,756	158,253
Financing activities
Decrease in lease obligation for tangible capital assets (Note 7)	26,287	25,143
Cash used in financing activities	26,287	25,143
Net cash provided by Government of Canada	1,834,724	1,564,783

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

TRANSPORT CANADA

Notes to the Financial Statements (Unaudited)
For the Year Ended March 31

1. Authority and objectives

Transport Canada is a department of the Government of Canada named in Schedule 1 of the Financial Administration Act and reports to Parliament through the Minister of Transport.

Transport Canada is responsible for the transportation policies, programs and goals set by the Government of Canada, which are supported through the following departmental core responsibilities:

• A Safe and Secure Transportation System: ensures a safe and secure transportation system in Canada through laws, regulations, policies and oversight.
• An Efficient Transportation System: supports efficient market access to products through investments in Canada’s trade corridors; adopts and implement rules and policies that promote sufficient choice and improved service to Canadian travelers and shippers, and manages transportation assets to ensure value for Canadians.
• A Green and Innovative Transportation System: advances the Government of Canada’s environmental agenda in the transportation sector by reducing harmful air emissions; protects Canada’s ocean and marine environments by reducing the impact of marine shipping; and affirms a commitment to innovation in the transportation sector.
• Internal Services: consists of 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 ten distinct lines of services that support Program delivery in the organization, regardless of the Internal Services delivery model in the Department. These services 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.

Transport Canada delivers its programs and services under numerous legislative and constitutional authorities including Department of Transport Act, Canada Transportation Act, Aeronautics Act, Canada Marine Act, Marine Liability Act, Canada Shipping Act, Navigation Protection Act, Railway Safety Act, Transportation of Dangerous Goods Act, Motor Vehicle Safety Act, Canadian Air Transport Security Authority Act, Marine Transportation Security Act and Safe and Accountable Rail Act.

2. Summary of significant accounting policies

These financial statements are prepared using Transport Canada’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:

1. Parliamentary authorities

   Transport Canada is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to Transport 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 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 2020-2021 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 2020-2021 Departmental Plan.

2. Net cash provided by Government

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

3. 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 Transport Canada is entitled to draw from the CRF without further authorities to discharge its liabilities.

4. Revenues

   Revenues from regulatory fees are recognized in the accounts based on the services provided in the year. Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. Revenues are then recognized in the period in which the related expenses are incurred.

   Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

   Other revenues are recognized in the period the event giving rise to the revenues occurred.

   Revenues that are non-respendable are not available to discharge Transport Canada's liabilities. While the Deputy Head 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.

5. Expenses

   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 carrying value.

6. Employee future benefits

   1. Pension benefits – Eligible employees participate in the Public Service Pension Plan (the Plan), a multi-employer pension plan administered by the Government of Canada. Transport Canada’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Transport Canada'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.

   2. 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.

7. Accounts and loans receivable

   Accounts and loans receivable are initially recorded at cost and where necessary, are discounted to reflect their concessionary terms. Concessionary terms of loans include cases where loans are made on a long-term, low interest or interest-free basis. Transfer payments that are unconditionally repayable are recognized as loans receivable. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts and loans receivable to amounts that approximate their net recoverable value.

8. 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 12. 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 collections and Crown land to which no acquisition cost is attributable, and intangible assets.

   Consumable parts are valued at cost and are comprised of spare parts and supplies held for future program delivery and are not primarily intended for resale. Consumable parts that no longer have service potential are valued at the lower of cost or net realizable value.

9. 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.

10. Contingent assets

    Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in the notes of the financial statements.

11. Environmental liabilities

    An environmental liability for the remediation of contaminated sites is recognized when all of the following criteria are satisfied: an environmental standard exists, contamination exceeds the environmental standard, the Government is directly responsible or accepts responsibility, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The liability reflects the Government’s best estimate of the amount required to remediate the sites to the current minimum standard for their use prior to contamination. When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable and expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the Government’s cost of borrowing, associated with the estimated number of years to complete remediation.

    The recorded liabilities are adjusted each year, as required, for present value adjustments, inflation, new obligations, changes in management estimates and actual costs incurred.

    If the likelihood of the Government’s responsibility is not determinable, a contingent liability is disclosed in the notes to the consolidated statements.

12. Transactions involving foreign currencies

    Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect at March 31. Gains and losses resulting from foreign currency transactions are reported on the Statement of Operations and Departmental Net Financial Position according to the activities to which they relate.

13. Measurement uncertainty

    The preparation of these financial statements requires management to make estimates and assumptions that affect the recognized 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, environmental liabilities, the liability for employee future benefits and the useful life of 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.

    Environmental liabilities are subject to measurement uncertainty as discussed in Note 5 due to the evolving technologies used in the estimation of the costs for remediation of contaminated sites, the use of discounted present value of future estimated costs, and the fact that not all sites have had a complete assessment of the extent and nature of remediation. Changes to underlying assumptions, the timing of the expenditures, the technology employed, the revisions to environmental standards or changes in regulatory requirements could result in significant changes to the environmental liabilities recorded.

14. 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 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

Transport Canada 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, Transport Canada 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

	2021	2020
	(in thousands of dollars)
Net cost of operations	1,786,701	1,796,054
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (Note 12)	(153,520)	(139,652)
Services provided without charge by other government departments (Note 16)	(104,825)	(105,081)
Gain (loss) on disposal of tangible capital assets (Note 18)	12,437	(24,265)
Adjustments to capital assets	(2,958)	3,427
Increase in vacation pay and compensatory leave	(23,674)	(6,733)
Decrease (increase) in environmental liabilities (Note 5)	16,735	(21,910)
Decrease in employee future benefits (Note 8)	3,522	111
Decrease (increase) in contingent liabilities (Note 15)	(17,920)	1,609
Decrease (increase) in accrued liabilities not charged to authorities	5,668	(3,698)
Refund of prior years' expenditures	2,331	3,332
Adjustments of previous years accounts payable	3,203	1,799
Bad debt expense	(530)	(61)
Other expenditures not affecting authorities	(992)	(476)
Total items affecting net cost of operations but not affecting authorities	(260,523)	(291,598)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	303,731	175,094
Decrease in lease obligations for tangible capital assets (Note 7)	26,287	25,143
Increase (decrease) in consumable parts (Note 11)	483	25
Increase (decrease) in prepaid expenses	2,059	(556)
Refund of deferred revenues	36,254	-
Other	2,172	1,060
Total items not affecting net cost of operations but affecting authorities	370,986	200,766
Current year authorities used	1,897,164	1,705,222

b. Authorities provided and used^{Footnote 1}

	2021	2020
	(in thousands of dollars)
Authorities provided:
Vote 1 – Operating expenditures	837,008	781,591
Vote 5 – Capital expenditures	357,791	171,193
Vote 10 – Grants and contributions – An Efficient Transportation System	863,210	614,974
Vote 15 – Grants and contributions – A Green and Innovative Transportation System	237,342	332,948
Vote 20 – Grants and contributions – A Safe and Secure Transportation System	64,395	48,990
Budget Implementation Votes	-	15,608
Statutory amounts	280,389	210,375
Total authorities provided	2,640,135	2,175,679
Less :
Authorities available for future years	(3,287)	(1,347)
Lapsed: Operating expenditures	(53,707)	(27,791)
Lapsed: Capital expenditures	(109,407)	(38,591)
Lapsed: Grants and contributions – An Efficient Transportation System	(478,808)	(243,433)
Lapsed: Grants and contributions – A Green and Innovative Transportation System	(54,845)	(118,965)
Lapsed: Grants and contributions – A Safe and Secure Transportation System	(42,917)	(24,718)
Lapsed: Other lapsed amounts	-	(15,612)
Current year authorities used	1,897,164	1,705,222

4. Accounts payable and accrued liabilities

The following table presents details of Transport Canada’s accounts payable and accrued liabilities.

	2021	2020
	(in thousands of dollars)
Accounts payable – Other government departments and agencies	69,628	83,260
Accounts payable – External parties	446,495	377,340
Total accounts payable	516,123	460,600
Accrued liabilities	66,185	106,212
Total accounts payable and accrued liabilities	582,308	566,812

5. Environmental liabilities

Remediation of contaminated sites

The Government’s “Federal Approach to Contaminated Sites” sets out a framework for management of contaminated sites using a risk-based approach. Under this approach, the Government has inventoried the contaminated sites identified on federal lands, allowing them to be classified, managed and recorded in a consistent manner. This systematic approach aids in identification of the high risk sites in order to allocate limited resources to those sites which pose the highest risk to human health and the environment.

Transport Canada has identified approximately 273 sites (303 sites in 2019-2020) where contamination may exist and assessment, remediation and monitoring may be required. Of these, Transport Canada has identified approximately 133 sites (132 sites in 2019-2020) where action is required and for which a gross liability of $218,613 thousand ($235,273 thousand in 2019-2020) has been recorded. This liability estimate has been determined based on site assessments performed by environmental experts.

In addition, a statistical model is applied to a group of unassessed sites in order to estimate both the number of sites that are likely to be remediated, and the associated expense based on consideration of current and historical costs. Of the 54 unassessed sites considered (57 sites in 2019-2020), the model predicted that 30 sites (30 sites in 2019-2020) would ultimately be remediated at an estimated cost of $14,860 thousand ($14,935 thousand in 2019-2020).

These two liability estimates combined, totalling $233,473 thousand ($250,208 thousand in 2019-2020) represent management’s best estimate of the costs required to remediate the sites to the current minimum standard for their use prior to contamination, based on information available at the financial statement date.

For the remaining 110 sites (141 sites in 2019-2020), no liability for remediation has been recognized. Some of these sites are at various stages of testing and evaluation and if remediation is required, liabilities will be reported as soon as a reasonable estimate can be determined. For other sites, Transport Canada does not expect to give up any future economic benefits (there is likely no significant environmental impact or human health threats). These sites will be re-examined and a liability for remediation will be recognized if future economic benefits will be given up.

The following table presents the total estimated amounts of these liabilities by nature and source, the associated expected recoveries and the total undiscounted future expenditures as at March 31, 2021, and March 31, 2020.  When the liability estimate is based on a future cash requirement, the amount is adjusted for inflation using a forecast Consumer Price Index (CPI) rate of 2.0% (2.0% in 2020). Inflation is included in the undiscounted amount. The Government of Canada’s cost of borrowing by reference to the actual zero-coupon yield curve for Government of Canada bonds has been used to discount the estimated future expenditures. The March 2021 rates range from 0.24% (0.45% in 2019-2020) for a 2 year term to 2.0% (1.37% in 2019-2020) for a 30 or greater year term.

Also, 30 sites were closed during the year (28 sites in 2019-2020) as they were either remediated or assessed to confirm that they no longer meet all the criteria required to record a liability for contaminated sites.

Nature and Source of Liability
	2021				2020
Nature & Source	Total Number of Sites	Number of Sites with a Liability	Estimated Liability	Estimated Total Undiscounted Expenditures	Total Number of Sites	Number of Sites with a Liability	Estimated Liability	Estimated Total Undiscounted Expenditures
			(in thousands of dollars)				(in thousands of dollars)
Military & Former Military Sites Footnote 1	7	3	290	291	10	3	329	339
Fuel Related Practices Footnote 2	68	31	14,361	14,916	71	31	18,361	20,616
Landfill/Waste Sites Footnote 3	19	13	18,268	19,199	20	14	16,678	19,744
Engineered Asset/Air & Land Transportation Footnote 4	61	54	35,972	37,516	67	56	45,357	47,612
Marine Facilities/Aquatic Sites Footnote 5	50	32	153,333	161,463	62	30	162,533	175,560
Office Footnote 6	4	2	2,518	2,864	5	1	1,086	1,155
Other Footnote 7	64	28	8,731	9,016	68	27	5,864	6,148
Totals	273	163	233,473	245,265	303	162	250,208	271,174

6. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific research projects, as well as from amounts received for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or service is performed. Details of the transactions related to this account are as follows:

	2021	2020
	(in thousands of dollars)
Shared-cost agreements Footnote *
Opening balance	4,036	3,384
Amounts received	1,820	1,060
Revenue recognized	(2,564)	(408)
Closing balance	3,292	4,036
Other
Opening balance	36,594	3,495
Amounts received	323	36,345
Revenue recognized	-	(3,246)
Amounts refunded to airport authorities in response to pandemic relief Footnote **	(36,254)	-
Closing balance	663	36,594
Net Closing Balance	3,955	40,630

7. Lease obligation for tangible capital assets

Under the Northumberland Strait Crossing Act, the Government of Canada entered into a long-term capital lease arrangement in 1992 and is obligated to pay an annual subsidy of $41,900 thousand indexed to the annual inflation rate to the Strait Crossing Finance Inc., a wholly owned corporation of the Province of New Brunswick, for the construction of the Confederation Bridge.

The annual payments made by Transport Canada are due on April 1 and will be used to retire $661,543 thousand of 4.5% real rate bonds issued in October 1993 by Strait Crossing Finance Inc. to finance the construction of the bridge. Annual payments made by Transport Canada began in 1997 and will continue until 2033. At such time, the ownership of the bridge will be transferred to the Government of Canada.

On April 1, 2020, an annual payment in the amount of $68,603 thousand ($66,999 thousand in 2019-2020) was made. This payment represents a payment of principal in the amount of $26,287 thousand ($25,143 thousand 2019-2020), interest of $18,887 thousand ($20,031 thousand in 2019-2020), and an amount of $23,429 thousand ($21,825 thousand in 2019-2020), representing the indexing of the payment to the annual inflation rate.

The interest expense and indexing adjustment accrued at March 31, 2021 amounts to $17,690 thousand ($18,887 thousand in 2019-2020) and $24,131 thousand ($23,429 thousand in 2019-2020), respectively.

Transport Canada has a capital lease obligation of $388,559 thousand at March 31, 2021 ($414,846 thousand at March 31, 2020), based on the present value for the future payments using an implicit interest rate of 6.06% at the time of signing the contract.

The obligations related to the upcoming years include the following:

	2021
	(in thousands of dollars)
2022	69,306
2023	65,815
2024	66,809
2025	67,819
2026	68,844
2027 and thereafter	448,031
Total future minimum lease payments	786,624
Less: imputed interest (6.06%)	(398,065)
Balance of obligations under leased tangible capital assets	388,559

8. Employee future benefits

1. Pension benefits

   Transport Canada’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/Québec Pension Plan benefits and they are indexed to inflation.

   Both the employees and Transport Canada 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 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 2020-2021 expense amounts to $84,168 thousand ($72,536 thousand in 2019-2020). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2019-2020) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2019-2020) the employee contributions.

   Transport Canada’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.

2. Severance benefits

   Severance benefits provided to Transport Canada’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, 2021, 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:

	2021	2020
	(in thousands of dollars)
Accrued benefit obligation - Beginning of year	23,108	23,219
Expense for the year	(2,221)	2,035
Benefits paid during the year	(1,301)	(2,146)
Accrued benefit obligation - End of year	19,586	23,108

9. Accounts receivable and advances

The following table presents details of Transport Canada’s accounts receivable and advances balances:

	2021	2020
	(in thousands of dollars)
Receivables – Airport Authorities, long-term (see note 19)	30,571	-
Receivables – Other government departments and agencies	25,643	31,925
Receivables – External parties, current	22,778	28,971
Employee advances	5,371	4,232
Subtotal	84,363	65,128
Allowance for doubtful accounts on receivables from external parties	(1,081)	(627)
Gross accounts receivable	83,282	64,501
Accounts receivable held on behalf of Government	(55,298)	(28,746)
Net accounts receivable	27,984	35,755

10. Loans receivable

The following table presents details of Transport Canada’s loans receivable:

	2021	2020
	(in thousands of dollars)
Loans receivable – Victoria Harbour	1,895	1,937
Loans receivable – St. Lawrence Seaway Management Corporation	174	174
Subtotal	2,069	2,111
Less: Unamortized discount	-	(7)
Subtotal	2,069	2,104
Less: Allowance for uncollectibility	(174)	(174)
Gross loans receivable	1,895	1,930
Loans receivable held on behalf of Government	(1,895)	(1,930)
Net loans receivable	-	-

1. Loans receivable from Victoria Harbour

   The Victoria Harbour loan receivable relates to the sale of a parcel of Victoria Harbour land for $2,578 thousand, repayable originally over a period of 15 years, with the final payment to have been received on May 9, 2020. In 2020-2021, an extension of the repayment period was granted and the final installment is currently scheduled for May 9, 2023. A payment of $43 thousand ($43 thousand in 2019-2020) was received in fiscal year 2020-2021.

2. Loans receivable from St. Lawrence Seaway Management Corporation

   The St. Lawrence Seaway Management Corporation loan portfolio account was established by subsection 80(1) of the Canada Marine Act. Loans previously managed by the St. Lawrence Seaway Authority are now managed by the St. Lawrence Seaway Management Corporation in accordance with an agreement between Transport Canada and the Corporation. The repayments of these loans are recorded in this account. An allowance for uncollectibility has been recorded for the remaining amount of the loans receivable as there is uncertainty of recovering the monies owed.

11. Inventory

	2021	2020
	(in thousands of dollars)
Consumable parts	14,603	14,120
Total inventory	14,603	14,120

The cost of consumed inventory recognized as an expense in the Statement of Operations and Departmental Net Financial Position is $5,991 thousand in 2020-2021 ($6,729 thousand in 2019-2020).

12. Tangible capital assets

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

Asset Class	Amortization Period
Confederation Bridge Footnote *	100 years
Assets under capital leases	Lease term
Buildings	20 to 40 years
Works and Infrastructure	10 to 60 years
Leasehold Improvements	Lease term
Machinery and Equipment	5 to 30 years
Informatics Hardware	3 to 5 years
Informatics Software	3 years
Ships and Boats	10 to 35 years
Aircraft	6 to 20 years
Motor Vehicles	6 to 35 years

Assets under construction are recorded in the applicable asset class in the year they are put into service and are not amortized until they are put into service.

	Cost					Accumulated Amortization					Net Book Value
Capital Asset Class	Opening Balance	Acquisitions	Adjustments (a)	Disposals and Write-Offs	Closing Balance	Opening Balance	Amortization	Adjustments (a)	Disposals and Write-Offs	Closing Balance	2021	2020
(in thousands of dollars)
Land Footnote 1 Footnote 6	204,902	-	(2)	(386)	204,514	-	-	-	-	-	204,514	204,902
Confederation Bridge	818,820	-	-	-	818,820	186,964	8,188	-	-	195,152	623,668	631,856
Buildings Footnote 2Footnote 7	864,162	463	15,588	(3,010)	877,203	636,113	16,955	151	(80)	653,139	224,064	228,049
Works and Infrastructure Footnote 3Footnote 8	3,578,210	46,976	3,124	(8,514)	3,619,796	2,282,346	67,299	191	(3,801)	2,346,035	1,273,761	1,295,864
Leasehold Improvements Footnote 5	30,412	-	4,254	-	34,666	15,675	1,338	7	-	17,020	17,646	14,737
Machinery and Equipment Footnote 4Footnote 9	165,754	12,612	3,819	(1,452)	180,733	100,504	12,273	(852)	(1,341)	110,584	70,149	65,250
Informatics Hardware	10,276	-	1,613	(145)	11,744	5,313	334	-	(133)	5,514	6,230	4,963
Informatics Software	170,639	2	35,641	(436)	205,846	149,130	34,783	(218)	(436)	183,259	22,587	21,509
Ships and Boats	155,140	587	787	(39)	156,475	85,700	2,422	8	(40)	88,090	68,385	69,440
Aircraft	172,842	-	4,020	-	176,862	125,106	5,146	-	-	130,252	46,610	47,736
Motor Vehicles	431,520	5,352	(215)	(101,262)	335,395	368,678	4,782	92	(90,875)	282,677	52,718	62,842
Assets under construction	155,745	237,739	(69,045)	-	324,439	-	-	-	-	-	324,439	155,745
Total	6,758,422	303,731	(416)	(115,244)	6,946,493	3,955,529	153,520	(621)	(96,709)	4,011,722	2,934,771	2,802,893

(a) Adjustments include $100 thousand in assets transferred to other departments at net book value (cost of $740 thousand, accumulated amortization of $640 thousand), $30 thousand in assets transferred from other departments at net book value (cost of $49 thousand, accumulated amortization of $19 thousand), as well as $66,133 thousand in assets under construction that were transferred to other categories upon completion and $275 thousand in other adjustments to assets under construction.

National Airport System assets

Land, buildings, works and infrastructures owned by Transport Canada related to the 23 Canadian airports comprising the National Airport System are included in the table above. Tangible capital assets owned by airport authorities are not reflected in these financial statements.

Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities and a municipal government. These agreements are in accordance with the federal National Airports Policy, the Public Accountability Principles for Canadian Airport Authorities and the Fundamental Principles for the Creation and Operations of Canadian Airport Authorities, which, in part, entail the transfer of the management, operations and maintenance of certain airports in Canada to Canadian Airport Authorities.

Transport Canada has the right to terminate the operating agreements and assume the responsibility for the management, operation and maintenance of the airport if the leased airports are not operated in accordance with the terms of the respective operating agreements and the Policies and Principles referred to above.

Values recorded for the National Airport System assets for 23 National Airports are:

St. Lawrence Seaway assets

Land, buildings, works and infrastructure, as well as machinery and equipment owned by Transport Canada related to the St. Lawrence Seaway (Seaway) are included in the table above. Ownership of these assets was transferred to Transport Canada effective October 1, 1998, when the St. Lawrence Seaway Management Corporation (SLSMC) was established. The original 20-year agreement with the federal government that was expected to end on March 31, 2018 was extended in 2017 for a period of five years and will therefore be in force until March 31, 2023. The SLSMC is responsible for managing and operating the Seaway, as well as the maintenance, repairs, acquisition and replacement of government-owned Navigation Seaway Assets. Transport Canada is responsible for funding any SLSMC financial requirements net of revenues. In 2020-2021, $52,880 thousand of the annual funding provided was utilized to acquire tangible capital assets ($40,228 thousand in 2019-2020). Other amounts to fund minor maintenance and repairs are recorded as an operating expense in the statement of operations.

Values recorded for the Seaway assets are:

13. Departmental net financial position

A portion of Transport Canada’s net financial position is restricted for specific purposes. Related revenues and expenses are included in the Statement of Operations and Departmental Net Financial Position. Transport Canada has three accounts which fall under this category:

1. Ship-source Oil Pollution Fund (SOPF)

   The Ship-source Oil Pollution Fund (Fund) was established pursuant to subsection 2001, c.6 of the Marine Liability Act (previously the Canada Shipping Act), to record levy tonnage payments for oil carried by ships in Canadian waters. Maritime pollution claims, the fee of the fund administrator, and related oil pollution control expenses, are financed out of the Fund. Additional information regarding the Ship-source Oil Pollution Fund can be found on the Fund’s website.

2. Fines for Transport of Dangerous Goods

   The Fines for Transport of Dangerous Goods account was established pursuant to the Transportation of Dangerous Goods Act 1992 and related regulations to record fines levied by courts under the Act. The balance of the account is used for program funding.

3. Fund for Railway Accidents Involving Designated Goods (FRAIDG)

   The Fund for Railway Accidents Involving Designated Goods was established pursuant to the Safe and Accountable Rail Act to establish a compensation fund to cover the losses, damages, costs and expenses resulting from a railway accident involving crude oil or other designated goods that exceed the minimum liability insurance coverage. This account is financed by a levy on shipments of crude oil by rail.

Activities incurred during the year in the accounts are as follows:

	2021	2020
	(in thousands of dollars)
Ship-source Oil Pollution Fund
Balance – Beginning of year	411,994	411,465
Revenues	1,321	6,541
Expenses	(2,669)	(6,012)
Balance – End of year	410,646	411,994
Fines for Transport of Dangerous Goods
Balance – Beginning of year	4,154	4,114
Revenues	-	40
Expenses	-	-
Balance – End of year	4,154	4,154
Fund for Railway Accidents Involving Designated Goods
Balance – Beginning of year	66,608	39,567
Revenues	15,294	27,508
Expenses	(899)	(467)
Balance – End of year	81,003	66,608
Total balance – End of year	495,803	482,756
Unrestricted	1,620,942	1,406,944
Departmental net financial position – End of year	2,116,745	1,889,700

14. Contractual obligations and contractual rights

1. Contractual obligations

   The nature of Transport Canada’s activities may result in some large multi-year contracts and obligations whereby Transport Canada 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:

   	2022	2023	2024	2025	2026 and thereafter	Total
   	(in thousands of dollars)
   Transfer payments	601,154	476,617	278,330	125,938	57,323	1,539,362
   Other goods and services	11,142	7,597	1,183	-	-	19,922
   Operating leases	557	548	-	-	-	1,105
   Tangible capital assets	5,299	14,636	18,914	7,129	-	45,978
   Total	618,152	499,398	298,427	133,067	57,323	1,606,367

2. Contractual rights

   The activities of Transport Canada sometimes involve the negotiation of contracts or agreements with outside parties that result in Transport Canada having rights to both assets and revenues in the future. They principally involve leases of property such as airports and hopper cars. Major contractual rights that will generate revenues in future years and that can be reasonably estimated are summarized as follows:

   	Leases of property
   	(in thousands of dollars)
   2022	193,273
   2023	282,349
   2024	318,964
   2025	328,010
   2026	334,571
   2027 and thereafter	-
   Total	1,457,167

15. Contingent liabilities and contingent assets

1. Contingent liabilities
   Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.

   Claims and litigation
   Claims have been made against Transport Canada in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. Transport Canada has recorded an allowance for claims and litigations in the amount of $24,416 thousand ($6,496 thousand in 2019-2020) where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $355 thousand ($1,875 thousand in 2019-2020) at March 31, 2021. Transport Canada has no claims and litigation with related parties at March 31, 2021.

2. Contingent assets
   Transport Canada has determined that there are no contingent assets which require disclosure in these financial statements.

3. Environmental liabilities
   Transport Canada has disclosed a contingent liability in the amount of $160 thousand for 1 site ($160 thousand in 2019-2020 for 1 site) where Transport Canada has determined that it is not directly responsible, nor does it accept responsibility; however, there is uncertainty as to whether Transport Canada may be held legally or morally responsible.

16. Related party transactions

Transport Canada 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 those individuals.

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

All material transactions with related parties were transacted at values consistent with an arm’s-length transaction.

1. Common services provided without charge by other government departments

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

   	2021	2020
   	(in thousands of dollars)
   Office accommodation	44,231	46,925
   Employer’s contribution to health and dental insurance plans	54,212	52,244
   Legal services	4,059	3,723
   Workers compensation	2,323	2,189
   Total	104,825	105,081

   The Government has centralized some of its administrative activities for efficiency and cost-effectiveness purposes 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 Transport Canada’s Statement of Operations and Departmental Net Financial Position.

2. Administration of programs on behalf of other government departments:

   Building Canada Fund (BCF)
   Under a memorandum of understanding signed with Infrastructure Canada on April 25, 2008, Transport Canada administers the BCF. During the year, Transport Canada incurred expenses of $36,318 thousand compared to $113,528 thousand in 2019-2020, on behalf of Infrastructure Canada. These expenses are reflected in the financial statements of Infrastructure Canada and are not recorded in these financial statements.

3. Other transactions with other government departments and agencies:

   	2021	2020
   	(in thousands of dollars)
   ExpensesFootnote 1	84,660	103,717
   RevenuesFootnote 2	42,091	45,227

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

17. Transfers to/from other government departments

During the year, tangible capital assets were transferred to/from other government departments. The transfers were recorded at their net book value.

Assets:	(in thousands of dollars)
Tangible capital assets transferred to other government departments (Note 12)	(100)
Tangible capital assets transferred from other government departments (Note 12)	30
Impact on tangible capital assets and net financial position	(70)

18. Segmented information

Presentation by segment is based on Transport Canada's core responsibilities and follows 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 core responsibilities, by major object of expense and major type of revenue. The segment results for the period are as follows:

	A Safe and Secure Transportation System	An Efficient Transportation System	A Green and Innovative Transportation System	Internal Services	Specified Purpose Accounts (Note 13)	2021 Total	2020 Total
	(in thousands of dollars)
Operating expenses
Salaries and employee benefits	468,627	59,631	86,558	174,883	-	789,699	709,141
Professional and special services	26,322	26,209	57,717	43,288	-	153,536	156,786
Amortization of tangible capital assets (Note 12)	17,015	104,681	5,973	25,851	-	153,520	139,652
Accommodation (Note 16)	24,879	3,460	4,784	11,108	-	44,231	46,924
Interest and inflation adjustment on capital lease payments (Note 7)	-	41,821	-	-	-	41,821	42,316
Equipment repair and maintenance	14,901	5,764	7,536	13,593	-	41,794	41,105
Increase (decrease) in contingent liabilities (Note 15)	-	-	-	17,920	-	17,920	(1,609)
Utilities, materials and supplies	6,600	3,320	1,759	1,367	-	13,046	17,025
Rentals	3,452	219	1,601	4,572	-	9,844	10,994
Operating costs in respect of St. Lawrence Seaway Agreements	-	8,730	-	-	-	8,730	22,544
Payments in lieu of property taxes	308	5,066	776	696	-	6,846	7,205
Information services – communications	1,688	3,106	778	281	-	5,853	6,923
Travel and relocation	3,166	171	743	71	-	4,151	27,374
Specified purpose accounts (Note 13)	-	-	-	-	3,568	3,568	6,479
Other	57	339	87	1,088	-	1,571	2,171
Postage	721	68	82	293	-	1,164	1,410
Telecommunications	744	56	388	(64)	-	1,124	607
Damage and other claims against the Crown	4	79	250	113	-	446	144
Reclassification of work-in-progress	-	(275)	-	-	-	(275)	(5,613)
Expenses incurred on behalf of Government	-	-	-	-	(3,568)	(3,568)	(6,479)
Net loss (gain) on disposal of tangible capital assets	178	10,389	(242)	(22,762)	-	(12,437)	24,265
Increase (decrease) in environmental liabilities (Note 5)	-	-	(16,735)	-	-	(16,735)	21,910
Total operating expenses	568,662	272,834	152,055	272,298	-	1,265,849	1,271,274
Transfer payments
Industry	8,525	89,375	159,118	-	-	257,018	264,452
Other levels of government within Canada	9,904	177,283	6,209	-	-	193,396	263,303
Non-profit organizations	2,918	121,807	16,828	-	-	141,553	78,480
Other countries and international organizations	148	-	-	-	-	148	95
Individuals	12	111	-	-	-	123	195
Total transfer payments	21,507	388,576	182,155	-	-	592,238	606,525
Total expenses	590,169	661,410	334,210	272,298	-	1,858,087	1,877,799
Revenues
Monitoring and enforcement revenues	18,265	28,929	-	427	-	47,621	46,629
Aircraft maintenance and flying services	37,293	-	-	-	-	37,293	35,839
Rentals and concessions	2,389	13,149	573	10,758	-	26,869	27,915
Specified purpose accounts (Note 13)	-	-	-	-	16,615	16,615	34,089
Transport facilities user fees	918	7,917	-	-	-	8,835	14,155
Other	655	(139)	2,510	158	-	3,184	762
Leases of property	-	(12,271)	-	-	-	(12,271)	381,368
Revenues earned on behalf of Government	(939)	(25,802)	(2,510)	(10,894)	(16,615)	(56,760)	(459,012)
Total revenues	58,581	11,783	573	449	-	71,386	81,745
Net cost of operations	531,588	649,627	333,637	271,849	-	1,786,701	1,796,054

19. Covid-19 Pandemic

The global COVID-19 pandemic has had an unprecedented impact on the air transportation sector in Canada. As governments around the world imposed border restrictions and advised their citizens against non-essential travel to protect people’s health, the sector has faced over the past year, significant declines in air passenger traffic and grounding of planes.

In emergency response to the COVID-19 and to support the air transportation sector, the government waived the March to December 2020 ground lease rents for all National Airport System airports as well as 2021 ground lease rents for small and medium size National Airport System airports. The government also deferred to 2024 the requirement to pay rent for the 2021 lease year for large National Airport System airports, at which point, repayment will take place over a ten year period. Government of Canada is also helping provinces and territories to support essential air access to remote communities and allocated $68 million in contributions in 2020-2021 to help maintaining minimum levels of air transportation services to remote communities to ensure continued access to essential goods and services, including community resupply of food and medical supplies.

In May 2021, the government launched two new contribution funding programs to help Canada’s airports recover from the effects of the COVID-19 pandemic:

• The Airport Critical Infrastructure Program is a new program providing close to $490 million to financially assist Canada’s larger airports with investments in critical infrastructure-related to safety, security or connectivity; and
• The Airport Relief Fund is a new program providing almost $65 million in financial relief to targeted Canadian airports to help maintain operations.

In addition to launching these two new funding programs, Transport Canada’s Airports Capital Assistance Program is receiving a funding top-up of $186 million over two years to provide financial assistance to Canada’s local and regional airports for safety-related infrastructure projects and equipment purchases.