Financial Statements of Transport Canada (Unaudited) For the year ended March 31, 2019

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, 2019, 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, 2019 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.

Original signed by

Michael Keenan
Deputy Minister
Ottawa, Canada

September 4, 2019

Date

 

Original signed by

Ryan Pilgrim, CPA, CA,
Chief Financial Officer
Ottawa, Canada

August 20, 2019

Date

 

TRANSPORT CANADA

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

 

2019

2018

Liabilities

Accounts payable and accrued liabilities (Note 4)

456,827

584,729

Vacation pay and compensatory leave

35,740

33,170

Environmental liabilities (Note 5)

228,298

171,038

Deferred revenue (Note 6)

6,879

5,920

Lease obligation for tangible capital assets (Note 7)

439,989

464,037

Employee future benefits (Note 8)

23,219

24,239

Contingent liabilities (Note 15)

8,105

9,750

Total net liabilities

1,199,057

1,292,883

Financial assets

Due from Consolidated Revenue Fund

380,694

500,629

Accounts receivable and advances (Note 9)

34,267

35,703

Loans receivable (Note 10)

1,886

1,839

Total gross financial assets

416,847

538,171

Financial assets held on behalf of Government

Accounts receivable and advances (Note 9)

(20,606)

(22,147)

Loans receivable (Note 10)

(1,886)

(1,839)

Total financial assets held on behalf of Government

(22,492)

(23,986)

Total net financial assets

394,355

514,185

Departmental net debt

804,702

778,698

Non-financial assets

Prepaid expenses

1,306

3,614

Consumable parts (Note 11)

14,095

13,340

Tangible capital assets (Note 12)

2,805,556

2,789,024

Total non-financial assets

2,820,957

2,805,978

Departmental net financial position (Note 13)

2,016,255

2,027,280

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.

Original signed by

Michael Keenan
Deputy Minister
Ottawa, Canada

September 4, 2019

Date

 

Original signed by

Ryan Pilgrim, CPA, CA,
Chief Financial Officer
Ottawa, Canada

August 20, 2019

Date

 

TRANSPORT CANADA

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

 

2019
Planned Results

2019

2018

Expenses (Note 19(a))

A Safe and Secure Transportation System

519,496

484,507

554,932

An Efficient Transportation System

760,479

482,357

419,201

A Green and Innovative Transportation System

190,946

231,993

88,422

Internal Services

197,434

206,883

174,503

Specified purpose accounts (Note 13)

4,483

11,117

4,062

Expenses incurred on behalf of Government

(4,483)

(11,117)

(4,062)

Total expenses

1,668,355

1,405,740

1,237,058

Revenues

Leases of property

366,742

403,322

374,808

Monitoring and enforcement revenues

51,634

48,918

49,014

Specified purpose accounts (Note 13)

15,961

32,111

23,332

Aircraft maintenance and flying services

27,798

31,493

27,581

Rentals and concessions

19,025

25,937

24,914

Transport facilities user fees

13,768

14,123

13,872

Other

1,338

1,848

2,094

Revenues earned on behalf of Government

(425,693)

(481,341)

(442,446)

Total revenues

70,573

76,411

73,169

Net cost of operations

1,597,782

1,329,329

1,163,889

Government funding and transfers

Net cash provided by Government of Canada

 

1,341,465

1,237,377

Change in due from Consolidated Revenue Fund

 

(119,936)

(67,734)

Services provided without charge by other government departments (Note 16)

 

96,778

96,615

Transfer of the transition payments for implementing salary payments in arrears

 

(2)

-

Transfer of assets (to)/from other government departments (Note 12 and Note 17)

 

(1)

(5,685)

Net cost of operations after government funding and transfers

 

11,025

(96,684)

Departmental net financial position – Beginning of year

 

2,027,280

1,930,596

Departmental net financial position – End of year

 

2,016,255

2,027,280

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)

 

2019

2018

Net cost of operations after government funding and transfers

 

11,025

(96,684)

Change due to tangible capital assets

Acquisition of tangible capital assets (Note 12)

155,497

154,993

Amortization of tangible capital assets (Note 12)

(138,822)

(137,391)

Proceeds from disposal of tangible capital assets

(9,866)

(24,171)

Net gain on disposal of tangible capital assets (Note 18)

7,321

21,240

Adjustments to assets under construction (Note 12(a))

2,403

6,757

Transfer (to)/from other government departments (Note 17)

(1)

(5,685)

Total change due to tangible capital assets

16,532

15,743

Change due to consumable parts (Note 11)

755

1,026

Change due to prepaid expenses

(2,308)

273

Net decrease in departmental net debt

26,004

(79,642)

Departmental net debt – Beginning of year

778,698

858,340

Departmental net debt – End of year

804,702

778,698

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)

 

2019

2018

Operating activities

Net cost of operations

1,329,329

1,163,889

Non-cash items:

Amortization of tangible capital assets (Note 12)

(138,822)

(137,391)

Adjustments to assets under construction (Note 12(a))

2,403

6,757

Services provided without charge by other government departments (Note 16)

(96,778)

(96,615)

Gain on disposal of tangible capital assets (Note 18)

7,321

21,240

Transition payments for implementing salary payments in arrears

2

-

Variations in Statement of Financial Position:

Increase in accounts receivable and advances (Note 9)

105

4,459

Increase (decrease) in prepaid expenses

(2,308)

273

Increase in consumable parts (Note 11)

755

1,026

Decrease in accounts payable and accrued liabilities (Note 4)

127,902

56,178

Increase in vacation pay and compensatory leave

(2,570)

(6,250)

Decrease (increase) in environmental liabilities (Note 5)

(57,260)

27,340

Increase in deferred revenue (Note 6)

(958)

(2,175)

Decrease (increase) in employee future benefits (Note 8)

1,020

(177)

Decrease in contingent liabilities (Note 15)

1,645

45,000

Cash used in operating activities

1,171,786

1,083,554

Capital investing activities

Acquisition of tangible capital assets (Note 12)

155,497

154,993

Proceeds from disposal of tangible capital assets

(9,866)

(24,171)

Cash used in capital investing activities

145,631

130,822

Financing activities

Decrease in lease obligation for tangible capital assets (Note 7)

24,048

23,001

Cash used in financial activities

24,048

23,001

Net cash provided by Government of Canada

1,341,465

1,237,377

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 by enacting, updating and enforcing all laws, regulations, policies and oversight activities (e.g., inspections) related to transportation safety and security.
  • An Efficient Transportation System: supports efficient market access to products through investments in Canada’s trade corridors, adopts rules to ensure Canadian air travellers have sufficient choice and increasing levels of service, and manages transportation assets to ensure value for Canadians.
  • A Green and Innovative Transportation System: advances the Government of Canada’s environmental and innovation agendas within the transportation sector by aiming to reduce harmful air emissions, protecting Canada’s ocean and marine environments by reducing the environmental impacts of marine shipping, and promoting and encouraging innovation within 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 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 2018-2019 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2018-2019 Departmental Plan.

  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

 

2019

2018

 

(in thousands of dollars)

Net cost of operations

1,329,329

1,163,889

Adjustments for items affecting net cost of operations but not affecting authorities:

Amortization of tangible capital assets (note 12)

(138,822)

(137,391)

Services provided without charge by other government departments
(note 16)

(96,778)

(96,615)

Gain on disposal of tangible capital assets (note 18)

7,321

21,240

Adjustments to assets under construction (note 12(a))

2,403

6,757

Increase in vacation pay and compensatory leave

(2,570)

(6,250)

Decrease (increase) in environmental liabilities (note 5)

(57,260)

27,340

Decrease (increase) in employee future benefits (note 8)

1,020

(177)

Decrease in contingent liabilities (note 15)

1,645

45,000

Decrease (increase) in accrued liabilities not charged to authorities

1,125

(702)

Refund of prior years' expenditures

2,898

701

Adjustments of previous years accounts payable

1,484

1,312

Bad debt expense

19

22

Other expenditures not affecting authorities

(1,757)

(850)

Total items affecting net cost of operations but not affecting
authorities

(279,272)

(139,613)

Adjustments for items not affecting net cost of operations but affecting authorities:

Acquisitions of tangible capital assets (note 12)

155,497

154,993

Decrease in lease obligations for tangible capital assets (note 7)

24,048

23,001

Increase in consumable parts (note 11)

755

1,026

Increase (decrease) in prepaid expenses

(2,308)

273

Other

882

2,151

Total items not affecting net cost of operations but affecting authorities

178,874

181,444

Current year authorities used

1,228,931

1,205,720

(b) Authorities provided and usedFootnote 1 (Note 19(b))

 

2019

2018

 

(in thousands of dollars)

Authorities provided:

Vote 1 – Operating expenditures

759,448

723,506

Vote 5 – Capital expenditures

184,365

163,553

Vote 10 – Grants and contributions – Gateways and corridors

-

113,277

Vote 15 – Grants and contributions – Transportation infrastructure

-

278,421

Vote 20 – Grants and contributions – Other

-

55,323

Vote 10 – Grants and contributions – An Efficient Transportation System

486,869

-

Vote 15 – Grants and contributions – A Green and Innovative Transportation System

45,033

-

Vote 20 – Grants and contributions – A Safe and Secure Transportation System

38,323

-

Statutory amounts

134,859

150,621

Total authorities provided

1,648,897

1,484,701

Less:

Authorities available for future years

(5)

(179)

Lapsed: Operating expenditures

(46,915)

(45,238)

Lapsed: Capital expenditures

(78,744)

(63,526)

Lapsed: Grants and contributions – Gateways and corridors

-

(54,287)

Lapsed: Grants and contributions – Transportation infrastructure

-

(92,050)

Lapsed: Grants and contributions – Other

-

(23,701)

Lapsed: Grants and contributions – An Efficient Transportation System

(244,297)

-

Lapsed: Grants and contributions – A Green and Innovative Transportation System

(34,237)

-

Lapsed: Grants and contributions – A Safe and Secure Transportation System

(15,589)

-

Lapsed: Other lapsed amounts

(179)

-

Current year authorities used

1,228,931

1,205,720

4. Accounts payable and accrued liabilities

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

 

2019

2018

 

(in thousands of dollars)

Accounts payable – Other government departments and agencies

41,722

47,914

Accounts payable – External parties

336,616

458,933

Total accounts payable

378,338

506,847

Accrued liabilities

78,489

77,882

Total accounts payable and accrued liabilities

456,827

584,729

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 290 sites (298 sites in 2017-2018) where contamination may exist and assessment, remediation and monitoring may be required. Of these, Transport Canada has identified approximately 109 sites (96 sites in 2017-2018) where action is required and for which a gross liability of $207,718 thousand ($146,526 thousand in 2017-2018) 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 74 unassessed sites considered (70 sites in 2017-2018), the model predicted that 41 sites (48 sites in 2017-2018) would ultimately be remediated at an estimated cost of $20,580 thousand ($24,512 thousand in 2017-2018).

These two liability estimates combined, totalling $228,298 thousand ($171,038 thousand in 2017-2018) 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 140 sites (154 sites in 2017-2018), 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, 2019, and March 31, 2018. 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 2.2% (1.9% in 2018). 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 2019 rates range from 1.55% (1.79% in 2017-2018) for 2 year term to 1.92% (2.24% in 2017-2018) for a 30 or greater year term.

Also, 36 sites were closed during the year (7 sites in 2017-2018) 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

 

2019

2018

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 SitesFootnote 1

10

5

528

541

6

1

182

190

Fuel Related Practices Footnote 2

70

25

20,675

22,125

61

25

24,589

26,423

Landfill/Waste SitesFootnote 3

20

11

31,029

33,907

24

11

33,761

36,216

Engineered Asset/Air & Land TransportationFootnote 4

64

55

38,281

39,701

69

44

28,965

30,293

Marine Facilities/Aquatic SitesFootnote 5

60

33

134,200

145,184

76

41

81,556

89,013

OtherFootnote 6

66

21

3,585

3,903

62

22

1,985

2,138

Totals

290

150

228,298

245,361

298

144

171,038

184,273

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:

 

2019

2018

 

(in thousands of dollars)

Shared-cost agreementsFootnote *

Opening balance

2,586

646

Amounts received

2,945

3,325

Revenue recognized

(2,147)

(1,385)

Closing balance

3,384

2,586

Other

Opening balance

3,334

3,099

Amounts received

3,141

2,937

Revenue recognized

(2,980)

(2,702)

Closing balance

3,495

3,334

Net closing balance

6,879

5,920

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, 2018, an annual payment in the amount of $66,045 thousand ($64,942 thousand in 2017-2018) was made. This payment represents a payment of principal in the amount of $24,048 thousand ($23,001 thousand in 2017-2018), interest of $21,126 thousand ($22,173 thousand in 2017-2018), and an amount of $20,872 thousand ($19,768 thousand in 2017-2018) representing the indexing of the payment to the annual inflation rate.

The interest expense and indexing adjustment accrued at March 31, 2019 amounts to $20,031 thousand ($21,126 thousand in 2017-2018) and $21,825 thousand ($20,872 thousand in 2017-2018), respectively.

Transport Canada has a capital lease obligation of $439,989 thousand at March 31, 2019 ($464,037 thousand in 2017-2018), 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:

 

2019

 

(in thousands of dollars)

2020

63,871

2021

64,836

2022

65,815

2023

66,809

2024

67,819

2025 and thereafter

516,875

Total future minimum lease payments

846,025

Less: imputed interest (6.06%)

(406,036)

Balance of obligations under leased tangible capital assets

439,989

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 2018-2019 expense amounts to $68,511 thousand ($62,944 thousand in 2017-2018). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2017-2018) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2017-2018) the employee contributions.

    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, 2019, 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:

 

2019

2018

 

(in thousands of dollars)

Accrued benefit obligation - Beginning of year

24,239

24,062

Expense for the year

1,760

3,970

Benefits paid during the year

(2,780)

(3,793)

Accrued benefit obligation - End of year

23,219

24,239

9. Accounts receivable and advances

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

 

2019

2018

 

(in thousands of dollars)

Receivables – Other government departments and agencies

9,232

11,774

Receivables – External parties

22,285

21,455

Employee advances

3,321

3,120

Subtotal

34,838

36,349

Allowance for doubtful accounts on receivables from external parties

(571)

(646)

Gross accounts receivable

34,267

35,703

Accounts receivable held on behalf of Government

(20,606)

(22,147)

Net accounts receivable

13,661

13,556

10. Loans receivable

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

 

2019

2018

 

(in thousands of dollars)

Loans receivable – Victoria Harbour

1,980

2,023

Loans receivable – St. Lawrence Seaway Management Corporation

174

174

Subtotal

2,154

2,197

Less: Unamortized discount

(94)

(184)

Subtotal

2,060

2,013

Less: Allowance for uncollectibility

(174)

(174)

Gross loans receivable

1,886

1,839

Loans receivable held on behalf of Government

(1,886)

(1,839)

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. A discount of $94 thousand ($184 thousand in 2017-2018) is recorded to reflect the concessionary nature of the loan. A payment of $43 thousand ($43 thousand in 2017-2018) was received in fiscal year 2018-2019.
  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

 

2019

2018

 

(in thousands of dollars)

Consumable parts

14,095

13,340

Total inventory

14,095

13,340

The cost of consumed inventory recognized as an expense in the Statement of Operations and Departmental Net Financial Position is $3,028 thousand in 2018-2019 ($2,724 thousand in 2017-2018).

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

2019

2018

(in thousands of dollars)

LandFootnote 1Footnote 6

205,769

-

(1)

(297)

205,471

-

-

-

-

-

205,471

205,769

Confederation Bridge

818,820

-

-

-

818,820

170,587

8,188

-

-

178,775

640,045

648,233

BuildingsFootnote 2Footnote 7

863,428

1,118

12,892

(12)

877,426

624,112

17,649

62

(5)

641,818

235,608

239,316

Works and InfrastructureFootnote 3Footnote 8

3,568,768

43,070

27,282

(128)

3,638,992

2,229,422

74,944

(39)

(127)

2,304,200

1,334,792

1,339,346

Leasehold ImprovementsFootnote 5

30,154

-

1,794

(4,233)

27,715

17,703

1,181

(10)

(3,586)

15,288

12,427

12,451

Machinery and EquipmentFootnote 4Footnote 9

129,798

12,731

7,929

(749)

149,709

88,989

5,812

(285)

(689)

93,827

55,882

40,809

Informatics Hardware

11,608

30

30

(1,370)

10,298

6,110

405

(2)

(1,247)

5,266

5,032

5,498

Informatics Software

141,844

36

30,553

(1,741)

170,692

118,300

15,561

(44)

(1,741)

132,076

38,616

23,544

Ships and Boats

150,237

838

3,445

(13)

154,507

81,060

2,229

8

(8)

83,289

71,218

69,177

Aircraft

151,367

41

3,894

(758)

154,544

117,718

3,876

-

(622)

120,972

33,572

33,649

Motor Vehicles

457,392

5,231

822

(11,073)

452,372

384,099

8,977

311

(9,805)

383,582

68,790

73,293

Assets under construction

97,939

92,402

(86,238)

-

104,103

-

-

-

-

-

104,103

97,939

Total

6,627,124

155,497

2,402

(20,374)

6,764,649

3,838,100

138,822

1

(17,830)

3,959,093

2,805,556

2,789,024

(a) Adjustments include assets under construction of $86,129 thousand that were transferred to the other asset categories upon completion, as well as other adjustments to assets under construction of $2,403 thousand ($109 thousand that were expensed, offset by $2,512 thousand in other adjustments).

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 2018-2019, $48,507 thousand of the annual funding provided was utilized to acquire tangible capital assets ($54,157 thousand in 2017-2018). 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:

 

2019

2018

 

(in thousands of dollars)

Ship-source Oil Pollution Fund

Balance – Beginning of year

412,204

409,455

Revenues

9,802

6,438

Expenses

(10,541)

(3,689)

Balance – End of year

411,465

412,204

Fines for Transport of Dangerous Goods

Balance – Beginning of year

4,114

514

Revenues

-

3,600

Expenses

-

-

Balance – End of year

4,114

4,114

Fund for Railway Accidents Involving Designated Goods

Balance – Beginning of year

17,834

4,913

Revenues

22,309

13,294

Expenses

(576)

(373)

Balance – End of year

39,567

17,834

Total balance – End of year

455,146

434,152

Unrestricted

1,561,109

1,593,128

Departmental net financial position – End of year

2,016,255

2,027,280

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:

     

    2020

    2021

    2022

    2023

    2024
    and thereafter

    Total

     

    (in thousands of dollars)

    Transfer payments

    316,689

    245,035

    121,293

    74,228

    76,408

    833,653

    Other goods and services

    95,120

    50,381

    34,498

    20,439

    4,135

    204,573

    Tangible capital assets

    66,856

    69,804

    73,386

    53,136

    -

    263,182

    Total

    478,665

    365,220

    229,177

    147,803

    80,543

    1,301,408

  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)

    2020

    420,870

    2021

    440,980

    2022

    475,048

    2023

    487,938

    2024

    497,653

    2025 and subsequent

    -

    Total

    2,322,489

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 $8,105 thousand ($9,750 thousand in 2017-2018) 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 $295 thousand ($6,747 thousand in 2017-2018) at March 31, 2019. Transport Canada has no claims and litigation with related parties at March 31, 2019.

  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 ($2,371 thousand in 2017-2018 for 3 sites) 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:

     

    2019

    2018

     

    (in thousands of dollars)

    Office accommodation

    46,652

    44,062

    Employer's contribution to health and dental insurance plans

    44,214

    45,718

    Legal services

    3,540

    4,176

    Workers' compensation

    2,372

    2,659

     

    96,778

    96,615

    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:

    1. Canada Strategic Infrastructure Fund (CSIF) and Border Infrastructure Fund (BIF)
      Under a memorandum of understanding signed with Infrastructure Canada on January 31, 2003, Transport Canada administers the CSIF and the BIF. During the year, Transport Canada incurred expenses of $24,226 thousand ($35,908 thousand in 2017-2018) related to the CSIF, and $3,750 thousand ($68 thousand in 2017-2018) related to the BIF, on behalf of Infrastructure Canada. These expenses are reflected in the financial statements of Infrastructure Canada and are not recorded in these financial statements.
    2. 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 $79,608 thousand compared to $184,451 thousand in 2017-2018, on behalf of Infrastructure Canada, due to the sunsetting of funds for the program. 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:

     

    2019

    2018

     

    (in thousands of dollars)

    ExpensesFootnote 1

    113,968

    104,248

    RevenuesFootnote 2

    41,769

    36,960

    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)

(4)

Tangible capital asset transferred from other government departments (note 12)

3

Impact on tangible capital assets and net financial position

(1)

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)

2019
Total

2018
Total

 

(in thousands of dollars)

Operating expenses

Salaries and employee benefits

361,229

76,082

66,349

141,769

-

645,429

621,034

Professional and special services

23,367

37,841

70,817

31,880

-

163,905

149,881

Amortization of tangible capital assets (Note 12)

17,863

109,645

4,526

6,789

-

138,823

137,391

Increase (decrease) in environmental liabilities (Note 5)

-

-

57,260

-

-

57,260

(27,340)

Accommodation (Note 16)

3,790

27,149

4,613

11,100

-

46,652

44,062

Interest and inflation adjustment on capital lease payments (Note 7)

-

41,856

-

-

-

41,856

41,998

Equipment repair and maintenance

17,417

3,626

4,690

6,649

-

32,382

38,085

Travel and relocation

22,146

1,789

5,183

1,277

-

30,395

26,817

Utilities, materials and supplies

9,546

3,444

2,961

1,280

-

17,231

15,862

Specified purpose accounts (Note 13)

-

-

-

-

11,117

11,117

4,062

Rentals

4,649

350

833

3,022

-

8,854

8,094

Payments in lieu of property taxes

507

4,982

718

736

-

6,943

6,776

Other

119

316

1,775

3,852

-

6,062

3,957

Information services – communications

1,379

3,038

1,026

365

-

5,808

5,019

Telecommunications

666

29

274

973

-

1,942

1,763

Postage

1,159

149

106

338

-

1,752

2,127

Damage and other claims against the Crown

108

18

2

440

-

568

6,428

Operating costs in respect of St. Lawrence Seaway

-

(368)

-

-

-

(368)

14,984

Decrease in contingent liabilities (Note 15)

-

-

-

(1,645)

-

(1,645)

(45,000)

Reclassification of work-in-progress

(2,550)

-

-

147

-

(2,403)

(6,757)

Net loss (gain) on disposal of tangible capital assets

723

(6,024)

69

(2,089)

-

(7,321)

(21,240)

Expenses incurred on behalf of Government

-

-

-

-

(11,117)

(11,117)

(4,062)

Total operating expenses

462,118

303,922

221,202

206,883

-

1,194,125

1,023,941

Transfer payments

Other levels of government within Canada

10,032

92,400

869

-

-

103,301

101,645

Industry

9,562

59,678

842

-

-

70,082

95,873

Non-profit organizations

2,658

26,181

8,993

-

-

37,832

15,181

Individuals

36

176

87

-

-

299

227

Other countries and international organizations

101

-

-

-

-

101

191

Total transfer payments

22,389

178,435

10,791

-

-

211,615

213,117

Total expenses

484,507

482,357

231,993

206,883

-

1,405,740

1,237,058

Revenues

Leases of property

-

403,322

-

-

-

403,322

374,808

Monitoring and enforcement revenues

23,170

25,316

-

432

-

48,918

49,014

Specified purpose accounts (Note 13)

-

-

-

-

32,111

32,111

23,332

Aircraft maintenance and flying services

31,493

-

-

-

-

31,493

27,581

Rentals and concessions

578

11,937

628

12,794

-

25,937

24,914

Transport facilities user fees

-

14,123

-

-

-

14,123

13,872

Other

334

257

1,120

137

-

1,848

2,094

Revenues earned on behalf of Government

(692)

(434,102)

(1,724)

(12,712)

(32,111)

(481,341)

(442,446)

Total revenues

54,883

20,853

24

651

-

76,411

73,169

Net cost of operations

429,624

461,504

231,969

206,232

-

1,329,329

1,163,889

19. Comparative Information

  1. Certain comparative figures have been reclassified to conform to the current year’s presentation. Specifically, the 2017-2018 expenses reported in the Statement of Operations and Departmental Net Financial Position have been reclassified by core responsibility (see Note 1). Transport Canada’s core responsibilities are set out in its new Departmental Results Framework, in accordance with the Treasury Board Policy on Results.
  2. As a result of significant differences between Transport Canada’s previous Program Alignment Architecture and its new Departmental Results Framework, grant and contribution authorities for 2017-2018 are presented according to the 2017-2018 appropriation acts approved by Parliament, whereas grant and contribution authorities for 2018-2019 are presented according to planned voted authorities for 2018-2019.