TRANSPORT CANADA
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, 2014, and all information contained in these statements rests with the management of Transport Canada. 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 Transport Canada's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in Transport Canada's Departmental Performance Report, is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.
Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout 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, 2014 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.
The effectiveness and adequacy of 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.
Original signed by
Louis Lévesque, Deputy Minister
Ottawa, Canada
August 29, 2014
Original signed by
André Lapointe, Chief Financial Officer
Ottawa, Canada
August 29, 2014
| 2014 | 2013 | |
|---|---|---|
| Liabilities | ||
| Accounts payable and accrued liabilities (Note 4) | 761,979 | 741,742 |
| Vacation pay and compensatory leave | 23,872 | 23,785 |
| Deferred revenue (Note 5) | 4,416 | 3,702 |
| Other liabilities (Note 6) | 24,540 | 24,540 |
| Lease obligations for tangible capital assets (Note 7) | 550,203 | 569,452 |
| Employee future benefits (Note 8) | 44,285 | 69,167 |
| Environmental and contingent liabilities (Note 9) | 231,294 | 248,677 |
| Total liabilities | 1,640,589 | 1,681,065 |
| Financial assets | ||
| Due from Consolidated Revenue Fund | 691,407 | 647,609 |
| Accounts receivable and advances (Note 10) | 38,237 | 46,352 |
| Loans receivable (Note 11) | 1,673 | 1,637 |
| Rent receivable (Note 12) | 12,816 | 20,139 |
| Total gross financial assets | 744,133 | 715,737 |
| Financial assets held on behalf of Government | ||
| Accounts receivable and advances (Note 10) | (22,498) | (21,642) |
| Loans receivable (Note 11) | (1,673) | (1,637) |
| Total financial assets held on behalf of Government | (24,171) | (23,279) |
| Total net financial assets | 719,962 | 692,458 |
| Departmental net debt | 920,627 | 988,607 |
| Non-financial assets | ||
| Prepaid expenses | 3,021 | 2,435 |
| Inventory (Note 13) | 12,251 | 11,855 |
| Tangible capital assets (Note 14) | 2,262,959 | 2,365,719 |
| Total non-financial assets | 2,278,231 | 2,380,009 |
| Departmental net financial position (Note 15) | 1,357,604 | 1,391,402 |
Environmental and contingent liabilities (Note 9)
Contractual obligations (Note 16)
The accompanying notes form an integral part of these financial statements.
Original signed by
Louis Lévesque, Deputy Minister
Ottawa, Canada
August 29, 2014
Original signed by
André Lapointe, Chief Financial Officer
Ottawa, Canada
August 29, 2014
| 2014 Planned Results | 2014 | 2013 | |
|---|---|---|---|
| Expenses | |||
| An Efficient Transportation System | 832,876 | 809,212 | 856,098 |
| A Safe and Secure Transportation System | 510,983 | 470,533 | 485,626 |
| Internal Services | 174,843 | 194,517 | 189,637 |
| A Clean Transportation System | 67,408 | 55,984 | 74,601 |
| Ship-Source Oil Pollution Fund and other programs | 4,084 | 2,381 | 1,807 |
| Expenses incurred on behalf of Government | (4,084) | (2,381) | (1,807) |
| Total expenses | 1,586,110 | 1,530,246 | 1,605,962 |
| Revenues | |||
| Airport rent | 307,657 | 294,368 | 282,403 |
| Monitoring and enforcement revenues | 46,971 | 45,980 | 43,941 |
| Aircraft maintenance and flying services | 33,383 | 30,685 | 31,194 |
| Rentals and concessions | 22,309 | 27,912 | 29,045 |
| Transport facilities user fees | 15,430 | 15,591 | 16,551 |
| Pollution control revenues | 7,385 | 8,977 | 5,201 |
| Other | 1,574 | 2,091 | 1,697 |
| Revenues earned on behalf of Government | (348,597) | (337,712) | (322,363) |
| Total revenues | 86,112 | 87,892 | 87,669 |
| Net cost from continuing operations | 1,499,998 | 1,442,354 | 1,518,293 |
| Transferred operations | |||
| Expenses (Note 18) | 8,418 | 6,756 | 2,999 |
| Net cost of transferred operations | 8,418 | 6,756 | 2,999 |
| Net cost of operations before government funding and transfers | 1,508,416 | 1,449,110 | 1,521,292 |
| Government funding and transfers | |||
| Net cash provided by Government | 1,464,165 | 1,284,320 | 1,891,196 |
| Change in due from Consolidated Revenue Fund | 62,971 | 43,798 | (608,483) |
| Services provided without charge by other government departments
(Note 17) |
80,649 | 86,721 | 86,843 |
| Transfer of assets and liabilities from (to) other government departments
(Note 14 and Note 18) |
- | 473 | (462) |
| Net cost of operations after government funding and transfers | (99,369) | 33,798 | 152,198 |
| Departmental net financial position – Beginning of year | 1,471,263 | 1,391,402 | 1,543,600 |
| Departmental net financial position – End of year | 1,570,632 | 1,357,604 | 1,391,402 |
Segmented information (Note 19)
The accompanying notes form an integral part of these financial statements.
| 2014 Planned Results | 2014 | 2013 | |
|---|---|---|---|
| Net cost of operations after government funding and transfers | (99,369) | 33,798 | 152,198 |
| Change due to tangible capital assets | |||
| Acquisitions of tangible capital assets | 222,078 | 76,261 | 59,154 |
| Amortization of tangible capital assets | (146,228) | (148,828) | (144,729) |
| Proceeds from disposal of tangible capital assets | (24,636) | (11,484) | (14,137) |
| Loss on disposal of tangible capital assets | (8,471) | (9,784) | (9,286) |
| Prior years' assets under construction expensed | (9,549) | (8,938) | (6,870) |
| Transfer from (to) other government departments | - | 13 | (462) |
| Total change due to tangible capital assets | 33,194 | (102,760) | (116,330) |
| Change due to inventories | 165 | 396 | (1,630) |
| Change due to prepaid expenses | 2,737 | 586 | (11,461) |
| Net increase (decrease) in departmental net debt | (63,273) | (67,980) | 22,777 |
| Departmental net debt – Beginning of year | 900,952 | 988,607 | 965,830 |
| Departmental net debt – End of year | 837,679 | 920,627 | 988,607 |
The accompanying notes form an integral part of these financial statements.
| 2014 | 2013 | |
|---|---|---|
| Operating activities | ||
| Net cost of operations before government funding and transfers | 1,449,110 | 1,521,292 |
| Non-cash items: | ||
| Amortization of tangible capital assets | (148,828) | (144,729) |
| Services provided without charge by other government departments Note 17) | (86,721) | (86,843) |
| Loss on disposal of tangible capital assets | (9,784) | (9,286) |
| Prior years' assets under construction expensed | (8,938) | (6,870) |
| Variations in Statement of Financial Position: | ||
| Increase (decrease) in accounts receivables and advances | (8,971) | 4,402 |
| Decrease in rents receivable | (7,323) | (7,322) |
| Increase (decrease) in prepaid expenses | 586 | (11,461) |
| Increase (decrease) in inventory | 396 | (1,630) |
| Decrease (increase) in accounts payable and accrued liabilities | (20,237) | 614,779 |
| Decrease (increase) in vacation pay and compensatory leave | (87) | 3,788 |
| Decrease (increase) in deferred revenue | (714) | 534 |
| Increase in other liabilities | - | (24,540) |
| Decrease in employee future benefits | 24,882 | 4,766 |
| Decrease (increase) in environmental and contingent liabilities | 17,383 | (29,111) |
| Transfer of liabilities to other government departments (Note 18) | (460) | - |
| Cash used in operating activities | 1,200,294 | 1,827,769 |
| Capital investing activities | ||
| Acquisitions of tangible capital assets | 76,261 | 59,154 |
| Proceeds from disposal of tangible capital assets | (11,484) | (14,137) |
| Cash used in capital investing activities | 64,777 | 45,017 |
| Financing activities | ||
| Decrease in lease obligation for tangible capital assets | 19,249 | 18,410 |
| Cash used in financing activities | 19,249 | 18,410 |
| Net cash provided by Government of Canada | 1,284,320 | 1,891,196 |
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 programs:
- An Efficient Transportation System program: modernizes marketplace frameworks so that the transportation sector can adapt, innovate and remain competitive; develops and implements gateways and corridors initiatives; ensures the renewal of federal transportation infrastructure; encourages innovation in the transportation sector, and; partners with provinces, territories, municipal governments, and public and private sector entities in various transportation initiatives.
- A Clean Transportation System program: advances the federal government's environmental agenda in the transportation sector and complements other federal programs designed to reduce air emissions to protect the health of Canadians and the environment for generations to come; protects the marine environment by reducing the pollution of water from transportation sources, and; fulfills Transport Canada's responsibilities in working towards a cleaner and healthier environment with regard to its own operations.
- A Safe and Secure Transportation System: influences the behaviour of the public and industry through policies, standards, regulations and laws; harmonizes and streamlines regulatory regimes, informed by the expertise of multiple countries and stakeholders; aids effective, safe and secure transportation practices and a sound safety and security culture, and; ensures that Canadians and the transportation industry are in compliance with the regulatory framework through its oversight program.
- The Internal Services program: Internal Services are groups of related activities and resources that are administrated to support the needs of programs and other corporate obligations of Transport Canada. Internal Services include only those activities and resources that apply across its organization and not to those provided specifically to a program.
Transport Canada delivers its programs and services under numerous legislative and constitutional authorities including the Department of Transport Act, Canada Transportation Act, Aeronautics Act, Canada Marine Act, Canada Shipping Act, Navigable Waters Protection Act, Railway Safety Act, Transportation of Dangerous Goods Act, Motor Vehicle Safety Act, Canadian Air Transport Security Authority Act and Marine Transportation Security Act.
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 – 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 Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Financial Statements included in the 2013-14 Report on Plans and Priorities.
- (b) 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.
- (c) 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.
- (d) 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. These revenues are recognized in the period in which the related expenses are incurred.
- Funds that have been received are recorded as deferred revenue, provided Transport Canada has an obligation to other parties for the provision of goods, services or the use of assets in the future.
- Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
- Revenues that are non-respendable are not available to discharge the Department's liabilities. While the Deputy Head is expected to maintain accounting control, he or she 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 expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable, as a result of conditions specified in the contribution agreement that have come into being, are recorded as a reduction to transfer payment expense and as a receivable.
- 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's contribution 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 (Plan), a multiemployer pension plan administered by the Government. Transport Canada's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The Department'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: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as the services necessary to earn them are rendered. The obligation relating to the benefits earned by employees 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 and loans receivable are stated at the lower of cost and net recoverable value. However, when the terms of the loans are concessionary, such as those provided with a low or no interest clause, they are recorded at their estimated present value. A portion of the unamortized discount is recorded as revenue each year to reflect the change in the present value of the loans outstanding. Transfer payments that are unconditionally repayable are recognized as loans receivable. A valuation allowance is recorded for accounts and loans receivable where recovery is considered uncertain.
- (h) Contingent liabilities – Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or if an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.
- (i) Environmental liabilities – Environmental liabilities consist of estimated costs related to the remediation of environmentally contaminated sites as well as estimated costs related to obligations associated with future asset restoration.
- Environmental liabilities are recorded as accrued liabilities to recognize the estimated costs related to the management and remediation of contaminated sites where the Department is obligated, or likely to be obligated, to remediate the sites. If the responsibility to remediate is undeterminable, the amount is disclosed as a contingent liability. If the responsibility to remediate is undeterminable and a reasonable estimate cannot be made, the nature, source and extent of contamination is disclosed as a contingent liability.
- Future asset restoration obligations are recorded as accrued liabilities to recognize the estimated costs related to the restoration of tangible capital assets. These costs are usually capitalized and amortized over the asset's estimated useful life based on an obligation imposed by legislation, regulation or contractual agreement where the Department is obligated, or likely to be obligated, to restore the tangible capital asset. If the obligation to restore the tangible capital asset is undeterminable, the amount is disclosed as a contingent liability. If the obligation to restore the tangible capital asset is undeterminable and an estimate cannot be made, the nature and source of the potential obligation is disclosed as a contingent liability.
- (j) Inventory – Inventory consists of parts, materials and supplies held for future program delivery and not intended for resale. Inventory, other than serialized inventory items, is valued at cost using the average cost method. Serialized inventory items are valued on a specific cost basis. A serialized inventory item is consumable inventory, which has a serial number and is required to be tracked for airworthiness purposes. If there is no longer any service potential, inventory is valued at the lower of cost or net realizable value.
- (k) Foreign currency transactions – 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 year-end. Gains and losses resulting from foreign currency transactions are included in the Statement of Operations and Departmental Net Financial Position.
- (l) Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Transport Canada does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian reserves and museum collections. Land has no minimum capitalization threshold.
- 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 | 100 years |
| Buildings and works: | |
| Buildings | 20 to 40 years |
| Works and infrastructure | 10 to 40 years |
| Machinery and equipment: | |
| Machinery and equipment | 5 to 15 years |
| Computer hardware | 3 to 5 years |
| Computer software | 3 years |
| Vehicles: | |
| Ships and boats | 10 to 35 years |
| Aircrafts | 6 to 20 years |
| Motor vehicles | 6 to 35 years |
| Leasehold improvements | Lesser of the remaining term of lease or useful life of the improvement |
| Leased tangible capital assets | Over term of lease or useful life of the asset if a bargain purchase offer exists |
- Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.
- (m) Measurement uncertainty – The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are allowance for doubtful accounts, contingent liabilities, environmental remediation 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.
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 in 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
| 2014 | 2013 | |
|---|---|---|
| Net cost of operations before government funding and transfers | 1,449,110 | 1,521,292 |
| Adjustments for items affecting net cost of operations but not affecting authorities: | ||
| Amortization of tangible capital assets | (148,828) | (144,729) |
| Services provided without charge by other government departments | (86,721) | (86,843) |
| Loss on disposal of tangible capital assets | (9,784) | (9,286) |
| Prior years' assets under construction expensed | (8,938) | (6,870) |
| Decrease (increase) in vacation pay and compensatory leave | (87) | 3,788 |
| Decrease in employee future benefits | 24,882 | 4,766 |
| Decrease (increase) in environmental and contingent liabilities | 17,383 | (29,111) |
| Increase in accrued liabilities not charged to authorities | (1,629) | (2,204) |
| Refund of prior years' expenditures | 1,591 | 1,099 |
| Adjustments of previous years accounts payable | 1,679 | 1,465 |
| Bad debt expense | (217) | (182) |
| Expenditures not affecting authorities | (1,270) | (1,315) |
| Total items affecting net cost of operations but not affecting authorities | (211,939) | (269,422) |
| Adjustments for items not affecting net cost of operations but affecting authorities: | ||
| Acquisitions of tangible capital assets | 75,559 | 58,207 |
| Decrease in lease obligation for tangible capital assets | 19,249 | 18,410 |
| Increase (decrease) in inventory | 396 | (1,630) |
| Increase (decrease) in prepaid expenses | 586 | (11,461) |
| Decrease in previous year accrued liabilities charged to authorities | 6,970 | 16,134 |
| Other | 702 | 948 |
| Total items not affecting net cost of operations but affecting authorities | 103,462 | 80,608 |
| Current year authorities used | 1,340,633 | 1,332,478 |
- (b) Authorities provided and used
| 2014 | 2013 | |
|---|---|---|
| Authorities provided | ||
| Vote 1 – Operating expenditures | 576,725 | 618,805 |
| Vote 5 – Capital expenditures | 232,603 | 106,273 |
| Vote 10 – Transfer payments | 619,721 | 1,251,941 |
| Statutory amounts | 189,553 | 144,771 |
| Total authorities provided | 1,618,602 | 2,121,790 |
| Less: | ||
| Authorities available for future years | (92) | (3,634) |
| Lapsed authorities: Operating expenditures | (27,559) | (93,642) |
| Lapsed authorities: Capital expenditures | (157,044) | (48,066) |
| Lapsed authorities: Transfer payments | (93,274) | (643,970) |
| Current year authorities used | 1,340,633 | 1,332,478 |
4. Accounts payable and accrued liabilities
The following table presents details of Transport Canada's accounts payable and accrued liabilities:
| 2014 | 2013 | |
|---|---|---|
| Accounts payable – External parties | 510,730 | 643,434 |
| Accounts payable – Other government departments and agencies | 133,622 | 10,237 |
| Total accounts payable | 644,352 | 653,671 |
| Accrued liabilities | 117,627 | 88,071 |
| Total accounts payable and accrued liabilities | 761,979 | 741,742 |
In Canada's Economic Action Plan 2012, the Government announced savings measures to be implemented by departments over three fiscal years starting in 2012-2013. As a result, Transport Canada has recorded at March 31, 2014, an obligation for termination benefits for an amount of $2,405,245 ($6,970,000 in 2012-2013) as part of accrued liabilities to reflect the estimated workforce adjustment costs.
5. 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, and for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed.
Details of the transactions related to this account are as follows:
| 2014 | 2013 | |
|---|---|---|
| Shared-cost agreements – Transportation research and development * | ||
| Opening balance | 784 | 957 |
| Amounts received | 803 | 229 |
| Revenue recognized | (358) | (402) |
| Closing balance | 1,229 | 784 |
| Others (non-specified purpose) | ||
| Opening balance | 2,918 | 3,279 |
| Amounts received | 2,776 | 1,381 |
| Revenue recognized | (2,507) | (1,742) |
| Closing balance | 3,187 | 2,918 |
| Net closing balance | 4,416 | 3,702 |
* A shared-cost agreement is a common undertaking whereby the parties involved agree to participate in carrying out a project. This may involve the sharing of resources and the purchase of goods or services. The Transportation Development Center utilizes joint cost sharing agreements with private and other government organizations on Research and Development projects related to transportation. The major themes include: rail, aviation safety and surface transportation.
6. Other liabilities
Other liabilities represent specified purpose accounts for shared cost environmental remediation projects. Funds are received by Transport Canada from external parties in order to cover future remediation expenditures related to these projects. These shared cost projects have not yet commenced and as a result, no associated expenditures have been incurred to date.
Details of the transactions related to this account are as follows:
| 2014 | 2013 | |
|---|---|---|
| Shared-cost agreements – Remediation projects | ||
| Opening balance | 24,540 | - |
| Amounts received | - | 24,540 |
| Net closing balance | 24,540 | 24,540 |
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 $41,900,000 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 $661,542,613 of 4.5 per cent 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, 2013 an annual payment in the amount of $60,830,420 ($60,529,578 in 2012-2013) was made. This payment represents a payment of principal in the amount of $19,248,682 ($18,410,515 in 2012-2013), interest of $25,925,158 ($26,763,325 in 2012-2013) and an amount of $15,656,580 (15,355,738 in 2012-2013) representing the indexing of the payment to the annual inflation rate. The interest expense and indexing adjustment accrued at March 31, 2014 amounts to $25,048,832 ($25,925,158 in 2012-2013) and $16,559,106 ($15,656,580 in 2012-2013) respectively.
Transport Canada has a capital lease obligation of $550,202,835 ($569,451,517 in 2012-2013), based on the present value for the future payments using an interest rate of 6.06% (6.06% in 2012-2013).
The obligations related to the upcoming years include the following:
| 2014 | 2013 | |
|---|---|---|
| 2014 | - | 58,375 |
| 2015 | 59,257 | 59,257 |
| 2016 | 60,152 | 60,152 |
| 2017 | 61,061 | 61,061 |
| 2018 | 61,983 | 61,983 |
| 2019 and thereafter | 908,945 | 908,945 |
| Total future minimum lease payments | 1,151,398 | 1,209,773 |
| Less: imputed interest (6.06%) | (601,195) | (640,321) |
| Balance of obligations under leased tangible capital assets | 550,203 | 569,452 |
8. Employee future benefits
- (a) Pension benefits
Transport Canada's employees participate in the Public Service Pension Plan (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 two 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 Plans 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 Canada's 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 2013 14 expense amounts to $63,103,692 ($63,917,722 in 2012-2013). For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012-2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012-2013) the employee contributions.
The Department'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
Transport Canada provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid from future authorities.
As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.
Information about the severance benefits, measured as at March 31, is as follows:
| 2014 | 2013 | |
|---|---|---|
| Accrued benefit obligation, beginning of year | 69,167 | 73,933 |
| Expense for the year | (14,369) | 12,956 |
| Benefits paid during the year | (10,513) | (17,722) |
| Accrued benefit obligation, end of year | 44,285 | 69,167 |
9. Environmental and contingent liabilities
Environmental and contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into two categories as follows:
- (a) Environmental liabilities
Transport Canada has identified approximately 92 sites (101 sites in 2012-2013) where the department is obligated or likely to be obligated, to remediate for which an environmental liability of $163,587,726 ($180,760,825 in 2012-2013) has been recorded in accrued liabilities. Transport Canada has not identified any sites where an amount has to be disclosed as a contingent liability. Transport Canada's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments of existing sites. These liabilities will be accrued by the Transport Canada in the year in which they become likely and are reasonably estimable.
- (b) 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 where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. An amount of $67,706,770 has been recorded in the financial statements as of March 31, 2014 ($67,916,666 in 2012-2013). Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $5,400,000 as at March 31, 2014 ($6,505,208 in 2012-2013).
10. Accounts receivable and advances
The following table presents details of Transport Canada's accounts receivable and advances balances:
| 2014 | 2013 | |
|---|---|---|
| Accounts receivable – External parties | 25,210 | 27,838 |
| Accounts receivable – Other government departments and agencies | 14,779 | 21,010 |
| Employee advances | 472 | 166 |
| Subtotal | 40,461 | 49,014 |
| Allowance for doubtful accounts on receivables from external parties | (2,224) | (2,662) |
| Gross accounts receivable and advances | 38,237 | 46,352 |
| Accounts receivable and advances held on behalf of Government | (22,498) | (21,642) |
| Net accounts receivable and advances | 15,739 | 24,710 |
11. Loans receivable
The following table presents details of Transport Canada's loans receivable:
| 2014 | 2013 | |
|---|---|---|
| Loans receivable – Victoria Harbour | 2,194 | 2,237 |
| Loans receivable – St. Lawrence Seaway Management Corporation | 174 | 7 |
| Subtotal | 2,368 | 2,244 |
| Less: Unamortized discounts | (521) | (600) |
| Subtotal | 1,847 | 1,644 |
| Less: Allowance for uncollectibility | (174) | (7) |
| Gross loans receivable | 1,673 | 1,637 |
| Loans receivable held on behalf of Government | (1,673) | (1,637) |
| Net loans receivable | - | - |
- (a) Loans receivable from Victoria Harbour
The Victoria Harbour loan receivable relates to the sale of a parcel of Victoria Harbour land for $2,578,469. A discount of $520,606 is recorded to reflect the concessionary nature of the loan ($599,958 in 2012-2013). A payment of $42,720 was received in fiscal year 2013 14 ($42,720 in 2012-2013).
- (b) 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. The loan portfolio is managed in accordance with the Seaway Agreements between
Transport Canada and the St. Lawrence Seaway Management Corporation. An allowance for uncollectibility has been recorded for the remaining amount of the loans receivable as there is uncertainty of recovering the monies owed.
12. Rent receivable
The National Airport System consists of Canadian airports considered essential to air transportation in Canada, including three airports owned by Territorial Governments. Transport Canada has leased all of these airports under long-term operating agreements with Canadian Airport Authorities and a municipal government.
In fiscal year 2003-04, Transport Canada entered into lease amendments with eight of the Canadian Airport Authorities, which provided for deferral of a portion of the airport rent payable by the Canadian Airport Authorities to Transport Canada for the 2003 to 2005 lease years. The total rent deferred for 2003 to 2005 is payable to Transport Canada over ten years beginning in the 2006 lease year. Repayments of $7,322,682 were received during the fiscal year ($7,322,682 in 2012-2013). The rent receivable balance was $12,815,849 as of March 31, 2014 ($20,138,531 in 2012-2013).
13. Inventory
The following table presents the detail of the inventory, which is measured at cost using the average cost method for non-serialized inventory items parts, and on a specific cost basis for serialized inventory items parts:
| 2014 | 2013 | |
|---|---|---|
| Consumable parts | 12,251 | 11,855 |
| Total inventory | 12,251 | 11,855 |
The cost of consumed inventory recognized as an expense in the Statement of Operations and Departmental Net Financial Position is $684,698 ($2,180,323 in 2012-2013).
14. Tangible capital assets
| Capital Asset Class
(in thousands of dollars) |
Cost | ||||
|---|---|---|---|---|---|
| Opening balance | Acquisitions | Adjustments (a) | Disposals and write-offs | Closing balance | |
| Land (1) | 262,580 | 960 | - | (7,310) | 256,230 |
| Buildings and works (2) | 3,712,823 | 2,811 | 38,194 | (43,283) | 3,710,545 |
| Machinery and equipment (3) | 205,970 | 6,535 | 21,102 | (28,002) | 205,605 |
| Vehicles | 722,156 | 5,728 | 1,493 | (17,081) | 712,296 |
| Leasehold improvements (4) | 29,292 | - | 783 | (2,799) | 27,276 |
| Assets under construction | 53,402 | 60,227 | (70,598) | - | 43,031 |
| Leased tangible capital asset | 818,820 | - | - | - | 818,820 |
| Total | 5,805,043 | 76,261 | (9,026) | (98,475) | 5,773,803 |
| Capital Asset Class
(in thousands of dollars) |
Accumulated Amortization | ||||
|---|---|---|---|---|---|
| Opening balance | Amortization | Adjustments (a) | Disposals and write-offs | Closing balance | |
| Land (1) | - | - | - | - | - |
| Buildings and works (2) | 2,581,959 | 98,357 | (3,679) | (34,936) | 2,641,701 |
| Machinery and equipment (3) | 145,851 | 25,595 | 3,582 | (26,943) | 148,085 |
| Vehicles | 566,387 | 15,211 | (4) | (14,645) | 566,949 |
| Leasehold improvements (4) | 15,481 | 1,477 | - | (683) | 16,275 |
| Assets under construction | - | - | - | - | - |
| Leased tangible capital asset | 129,646 | 8,188 | - | - | 137,834 |
| Total | 3,439,324 | 148,828 | (101) | (77,207) | 3,510,844 |
| Capital Asset Class
(in thousands of dollars) |
Net book value | |
|---|---|---|
| 2014 | 2013 | |
| Land (1) | 256,230 | 262,580 |
| Buildings and works (2) | 1,068,844 | 1,130,864 |
| Machinery and equipment (3) | 57,520 | 60,119 |
| Vehicles | 145,347 | 155,769 |
| Leasehold improvements (4) | 11,001 | 13,811 |
| Assets under construction | 43,031 | 53,402 |
| Leased tangible capital asset | 680,986 | 689,174 |
| Total | 2,262,959 | 2,365,719 |
- (a) Adjustments
Adjustments include assets under construction of $61,863,258 that were transferred to the other asset categories upon completion and assets under construction of $8,938,263 that were expensed.
Adjustments also include a net book value increase of $13,134 for tangible capital assets transferred to or from other government departments and agencies as follows:
| 2014 | 2013 | |
|---|---|---|
| Transfers of tangible capital assets from (to) other government departments | ||
| From the Department of Employment and Social Development | 31 | - |
| From the Department of National Defence | 21 | - |
| From the Department of Public Works and Government Services | 8 | - |
| From the Canada Border Services Agency | - | 205 |
| From the Department of Foreign Affairs and International Trade | - | 21 |
| To the Economic Development Agency of Canada for the Regions of Quebec | (28) | - |
| To Shared Services Canada | (19) | (667) |
| To the Treasury Board Secretariat | - | (21) |
| Total transfers of tangible capital assets from (to) other government departments | 13 | (462) |
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:
- (1) A net book value of $159,003,633 ($164,859,068 in 2012-2013) included in Land.
- (2) A net book value of $415,834,609 ($477,773,790 in 2012-2013) included in Building and works.
- (3) A net book value of $239,034 ($451,810 in 2012-2013) included in Machinery and equipment.
- (4) A net book value of $293,020 ($334,880 in 2012-2013) included in Leasehold improvements.
15. Departmental net financial position
A portion of Transport Canada's net financial position is used for specific purposes and is restricted. Related revenues and expenses are included in the Statement of Operations and Departmental Net Financial Position.
Transport Canada has two accounts for specified purposes:
- (a) The Ship-Source Oil Pollution Fund
The Ship-Source Oil Pollution Fund (Fund) was established pursuant to section 702 of 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.
- (b) 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.
Activities in the accounts are as follows:
| 2014 | 2013 | |
|---|---|---|
| The Ship-Source Oil Pollution Fund – Restricted | ||
| Balance – Beginning of year – Restricted | 399,198 | 395,794 |
| Revenues | 8,967 | 5,171 |
| Expenses | (2,269) | (1,767) |
| Balance – End of year – Restricted | 405,896 | 399,198 |
| Fines for Transport of Dangerous Goods – Restricted | ||
| Balance – Beginning of year – Restricted | 616 | 626 |
| Revenues | 10 | 30 |
| Expenses | (112) | (40) |
| Balance – End of year – Restricted | 514 | 616 |
| Total balance – End of year – Restricted | 406,410 | 399,814 |
| Unrestricted | 951,194 | 991,588 |
| Departmental net financial position – End of year | 1,357,604 | 1,391,402 |
16. Contractual obligations
The nature of Transport Canada's activities can 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:
| (in thousands of dollars) | 2015 | 2016 | 2017 | 2018 | 2019 and thereafter | Total |
|---|---|---|---|---|---|---|
| Transfer payments | 698,199 | 437,056 | 68,424 | 44,123 | 63,001 | 1,310,803 |
| Other goods and services | 45,414 | 24,934 | 20,048 | 5,337 | 49,196 | 144,929 |
| Operating leases | 3,871 | 2,715 | 475 | 117 | - | 7,178 |
| Capital leases | 1,208 | - | - | - | - | 1,208 |
| Total | 748,692 | 464,705 | 88,947 | 49,577 | 112,197 | 1,464,118 |
17. Related party transactions
Transport Canada is related as a result of common ownership to all government departments, agencies, and Crown corporations. Transport Canada enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, Transport Canada received common services which were obtained without charge from other government departments as disclosed below. In addition Transport Canada has entered into agreements to administer programs on behalf of the Office of Infrastructure of Canada.
- (a) Common services provided without charge by other government departments
During the year Transport Canada received, without charge from certain common service organizations, services related to accommodation, the employer's contribution to the health and dental insurance plans, legal services, and workers' compensation coverage. These services provided without charge have been recorded in Transport Canada's Statement of Operations and Departmental Net Financial Position as follows:
| 2014 | 2013 | |
|---|---|---|
| Accommodation | 42,124 | 40,563 |
| Employer's contribution to the health and dental insurance plans | 35,808 | 38,647 |
| Workers' compensation | 3,947 | 3,222 |
| Legal services | 4,842 | 4,411 |
| Total | 86,721 | 86,843 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and for 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 Works and
Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Statement of Operations and Departmental Net Financial Position of Transport Canada. The costs of information technology infrastructure services provided by Shared Services Canada, following the transfer of responsibilities in November 2011 and April 2013, are also not included in the Transport Canada's Statement of Operations and Departmental Net Financial Position.
- (b) Administration of programs on behalf of other government departments
- (i) Canada Strategic Infrastructure Fund (CSIF) and Border Infrastructure Fund (BIF)
- Under a memorandum of understanding signed with the Office of Infrastructure of Canada on January 31, 2003, Transport Canada administers the CSIF and the BIF. During the year, Transport Canada incurred expenses of $159,447,945 ($210,878,246 in 2012-2013) related to the CSIF, and $28,196,496 ($7,449,801 in 2012-2013) related to the BIF on behalf of The Office of Infrastructure of Canada. These expenses are reflected in the financial statements of the Office of Infrastructure of Canada and are not recorded in these financial statements.
- (ii) Building Canada Fund (BCF)
- Under a memorandum of understanding signed with the Office of Infrastructure of Canada on April 25, 2008, Transport Canada administers the BCF. During the year, Transport Canada incurred expenses of $530,470,766 ($848,261,579 in 2012-2013) related to the BCF on behalf of the Office of Infrastructure of Canada. These expenses are reflected in the financial statements of the Office of Infrastructure of Canada and are not recorded in these financial statements.
- (c) Other transactions with related parties
| 2014 | 2013 | |
|---|---|---|
| Expenses – Other government departments and agencies | 74,095 | 60,155 |
| Revenues – Other government departments and agencies | 39,432 | 37,795 |
Expenses and revenues disclosed in (c) exclude common services provided without charge, which are already disclosed in (a).
18. Transfers from (to) other government departments
- During the year, tangible capital assets were received from (to) other government departments. The transfers were measured at their net book value.
- Effective April 3, 2013, Transport Canada transferred the control and supervision of the portion of its administration costs and functions related to the acquisition and provision of hardware and software, including security software, for end user devices to Shared Services Canada in accordance with order-in-council OIC 2013 0368. Expenses incurred prior to April 3, 2013 ($0 in 2013-2014 and $248,082 in 2012-2013) are presented as transferred operations in the Statement of Operations and Departmental Net Financial Position.
- Effective February 13, 2014, Transport Canada transferred the control and supervision of the portion of its administration costs and functions related the Unit Responsible for Federal Bridges in the Region of Montreal to the Office of Infrastructure of Canada in accordance with order-in-council OIC 2014 1144. Expenses of $6,756,269 ($2,751,292 in 2012-13) incurred prior to February 13, 2014 are presented as transferred operations in the Statement of Operations and Departmental Net Financial Position.
The impact of transfers from (to) other government departments to the departmental net financial position is as follows:
| 2014 | 2013 | |
|---|---|---|
| Assets | ||
| Tangible capital assets transferred from (to) other government departments (Note 14) | 13 | (462) |
| Liabilities | ||
| Accounts payable to external parties transferred to the Office of Infrastructure of Canada | 285 | - |
| Accounts payable to other government departments and agencies transferred to the
Office of Infrastructure of Canada |
100 | - |
| Accrued salaries transferred to the Office of Infrastructure of Canada | 75 | - |
| Total liabilities transferred to other government departments | 460 | - |
| Adjustment to the departmental net financial position | 473 | (462) |
In addition, the 2013 comparative figures have been reclassified on the Statement of Operations and Departmental Net Financial Position to present the expenses of the transferred operations related to the Office of Infrastructure of Canada and Shared Services Canada. During the transition period, Transport Canada continued to administer the transferred activities:
- The expenses administered on behalf of Shared Services Canada from April 3, 2013 to March 31, 2014 amounted to $371,276. These expenses are not recorded in these financial statements.
- The expenses administered on behalf of the Office of Infrastructure of Canada from February 13, 2014 to March 31, 2014 amounted to $8,246,357. These expenses are not recorded in these financial statements.
19. Segmented information
Presentation by segment is based on Transport Canada'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 expenses and by major type of revenues. The segment results for the period are as follows:
| (in thousands of dollars) | An Efficient Transportation System | A Safe and Secure Transportation System | Internal Services | A Clean Transportation System | Ship-source Oil Pollution Fund and other programs | 2014
Total |
2013
Total |
|---|---|---|---|---|---|---|---|
| Transfer payments | |||||||
| Other levels of government within Canada | 211,805 | 15,635 | - | 250 | - | 227,690 | 372,956 |
| Industry | 207,948 | 6,847 | - | 5,066 | - | 219,861 | 146,439 |
| Non-profit organizations | 13,436 | 2,548 | - | (21) | - | 15,963 | 38,873 |
| Other countries and international organizations | 261 | 175 | - | - | - | 436 | 234 |
| Individuals | 391 | 35 | - | - | - | 426 | 273 |
| Total transfer payments | 433,841 | 25,240 | - | 5,295 | - | 464,376 | 558,775 |
| Operating expenses | |||||||
| Salaries and employee benefits | 46,161 | 315,850 | 121,696 | 26,419 | - | 510,126 | 517,484 |
| Amortization of tangible capital assets | 114,968 | 19,150 | 13,522 | 1,188 | - | 148,828 | 144,729 |
| Management fees for operation and maintenance of the St. Lawrence Seaway | 110,198 | - | - | - | - | 110,198 | 74,341 |
| Professional and special services | 28,907 | 31,556 | 32,129 | 13,731 | - | 106,323 | 129,953 |
| Accommodation (note 17) | 4,064 | 26,011 | 9,832 | 2,217 | - | 42,124 | 40,563 |
| Interest and inflation adjustment on capital lease payments (note 7) | 41,608 | - | - | - | - | 41,608 | 41,582 |
| Equipment repair and maintenance | 6,968 | 14,362 | 9,465 | 5,142 | - | 35,937 | 28,657 |
| Travel and relocation | 1,789 | 17,482 | 1,259 | 1,439 | - | 21,969 | 18,490 |
| Utilities, materials and supplies | 3,328 | 9,567 | 1,073 | 88 | - | 14,056 | 15,912 |
| Net loss on disposal of tangible capital assets | 10,615 | 874 | (1,701) | (4) | - | 9,784 | 9,286 |
| Payments in lieu of property taxes | 5,460 | 1,298 | 627 | - | - | 7,385 | 7,102 |
| Rentals | 538 | 4,063 | 2,661 | 112 | - | 7,374 | 6,799 |
| Information services – communications | 534 | 1,441 | 856 | 238 | - | 3,069 | 2,724 |
| Other | 101 | (47) | 2,556 | 50 | - | 2,660 | 3,842 |
| Pollution control (note 15) | - | - | - | - | 2,381 | 2,381 | 1,807 |
| Postage | 107 | 1,493 | 476 | 65 | - | 2,141 | 2,247 |
| Damage and other claims against the Crown | 14 | 1,889 | 1 | - | - | 1,904 | 3,131 |
| Telecommunications | 11 | 304 | 65 | 4 | - | 384 | 345 |
| Expenses incurred on behalf of Government | - | - | - | - | (2,381) | (2,381) | (1,807) |
| Total operating expenses | 375,371 | 445,293 | 194,517 | 50,689 | - | 1,065,870 | 1,047,187 |
| Total expenses | 809,212 | 470,533 | 194,517 | 55,984 | - | 1,530,246 | 1,605,962 |
| Revenues | |||||||
| Airport rent | 294,368 | - | - | - | - | 294,368 | 282,403 |
| Monitoring and enforcement revenues | 19,393 | 25,999 | 588 | - | - | 45,980 | 43,941 |
| Aircraft maintenance and flying services | - | 30,685 | - | - | - | 30,685 | 31,194 |
| Rentals and concessions | 13,839 | 264 | 13,809 | - | - | 27,912 | 29,045 |
| Transport facilities user fees | 15,186 | 405 | - | - | - | 15,591 | 16,551 |
| Pollution control revenues (note 15) | - | - | - | - | 8,977 | 8,977 | 5,201 |
| Other | 823 | 1,023 | 245 | - | - | 2,091 | 1,697 |
| Revenues earned on behalf of Government | (313,379) | (1,373) | (13,983) | - | (8,977) | (337,712) | (322,363) |
| Total revenues | 30,230 | 57,003 | 659 | - | - | 87,892 | 87,669 |
| Net cost from continuing operations | 778,982 | 413,530 | 193,858 | 55,984 | - | 1,442,354 | 1,518,293 |
20. Comparative information
Comparative figures have been reclassified to conform to the current year's presentation.
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