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2011 Departmental Performance Report

Financial Statements for the Year Ended March 31, 2011

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011 and all information contained in these statements rests with the management of the Office of the Chief Electoral Officer (the Office). These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.

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 judgements 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 the agency's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the agency'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 designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly recorded in accordance with the Financial Administration Act and regulations, the Canada Elections Act, the Referendum Act, the Electoral Boundaries Readjustment Act and the Constitution Acts.

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 the agency; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting. 

An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls and to make any necessary adjustments.

Management is supported and assisted by a program of internal audit services. The Office also has an independent Audit Committee. The responsibilities of the committee are to provide the Chief Electoral Officer with independent and objective advice, guidance, and deliberation on the adequacy and effectiveness of the Office's governance, risk management, control, audit and reporting practices.

The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the Office which does not include an audit opinion on the annual assessment of the effectiveness of the Office's internal controls over financial reporting.


(Original signed by)

Marc Mayrand
Chief Electoral Officer of Canada

(Original signed by)

Brian Berry, CMA
Acting Chief Financial Officer, Internal Audit and Administration

Ottawa, Canada
July 22, 2011

 

INDEPENDENT AUDITOR'S REPORT

To the Speaker of the House of Commons

Report on the Financial Statements

I have audited the accompanying financial statements of the Office of the Chief Electoral Officer, which comprise the statement of financial position as at 31 March 2011, and the statement of operations, statement of equity of Canada and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of the Office of the Chief Electoral Officer as at 31 March 2011, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Report on Other Legal and Regulatory Requirements

In my opinion, the transactions of the Office of the Chief Electoral Officer that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations, the Canada Elections Act, the Referendum Act, and the Electoral Boundaries Readjustment Act.

John Wiersema, FCA
Interim Auditor General of Canada

22 July 2011
Ottawa, Canada

 

OFFICE OF THE CHIEF ELECTORAL OFFICER
Statement of Financial Position
As at March 31
(in thousands of dollars)

  2011 2010
ASSETS
Financial assets
Accountable advances
$599
$3
Due from the Consolidated Revenue Fund
26,945
14,100
Receivables
- from external parties
422
1,698
- from government departments and agencies 1,220 489
Total financial assets
29,186
16,290
Non-financial assets
Prepaid expenses
1,874
1,081
Consumable supplies
9,806
8,194
Tangible capital assets (Note 5) 16,682 21,988
Total non-financial assets
28,362
31,263
Total
$57,548
$47,553
LIABILITIES
Accounts payable and accrued liabilities
- to external parties
$20,124
$11,817
- to government departments and agencies
2,690
2,134
Accrued employee salaries and benefits
5,254
635
Lease obligation for tangible capital assets (Note 6)
90
159
Provision for vacation leave
1,837
1,736
Deposits from political candidates (Note 12)
97
102
Employee severance benefits (Note 7b)  6,712  5,747
Total liabilities
36,804
22,330
EQUITY OF CANADA
20,744
25,223
Total
$57,548
$47,553

Contractual Obligations (Note 8) and Contingencies (Note 9)
The accompanying notes form an integral part of these Financial Statements.

Approved by:

(Original signed by)

Marc Mayrand
Chief Electoral Officer of Canada

(Original signed by)

Brian Berry, CMA
Acting Chief Financial Officer, Internal Audit and Administration

Ottawa, Canada
July 22, 2011

 

OFFICE OF THE CHIEF ELECTORAL OFFICER
Statement of Operations
For the Year Ended March 31
(in thousands of dollars)

  2011 2010
Expenses
Electoral Event Delivery. Political Financing, and Compliance and Enforcement
$48,855
$44,203
Electoral Event Readiness and Improvements
45,151
44,542
Public Education and Information, and Support for Stakeholders
10,323
5,877
Electoral Boundaries Redistribution
501
91
Internal Services
54,986
48,831
Total Expenses
159,816
143,544
Non-tax revenue
Electoral Event Delivery. Political Financing, and Compliance and Enforcement
27
64
Electoral Event Readiness and Improvements
Public Education and Information, and Support for Stakeholders
Electoral Boundaries Redistribution
Internal Services
  7
  8
Total Non-tax revenue
34
72
Net Cost of Operations
159,782
143,472

Segmented Information (Note 10)

The accompanying notes form an integral part of these Financial Statements.

 

OFFICE OF THE CHIEF ELECTORAL OFFICER
Statement of Equity of Canada
For the Year Ended March 31
(in thousands of dollars)

  2011 2010
Equity of Canada, beginning of year
$25,223
$23,234
Net cost of operations
(159,782)
(143,472)
Change in Due from the Consolidated Revenue Fund
12,845
(50,060)
Net cash provided by Government
133,469
187,436
Services provided without charge (Note 11)
8,989
8,085
Equity of Canada, end of year
$20,744
$25,223

 The accompanying notes form an integral part of these Financial Statements.

 

OFFICE OF THE CHIEF ELECTORAL OFFICER
Statement of Cash Flow
For the Year Ended March 31
(in thousands of dollars)

  2011 2010
OPERATING ACTIVITIES
Net cost of operations
$159,782
$143,472
Non-Cash items:
Amortization of tangible capital assets
(6,728)
(6,697)
Write off of tangible capital assets
(6,908)
-
Loss on disposal of tangible capital assets
-
(23)
Services provided without charge
(8,989)
(8,085)
Variation in Statement of Financial Position:
Increase (Decrease) in accounts receivable and accountable advances
51
(811)
Increase (decrease) in prepaid expenses
793
(538)
Increase in consumable supplies
1,612
448
Increase (decrease) in liabilities
(14,543)
50,353
Cash used in operating activities
125,070
178,119
CAPITAL INVESTMENT ACTIVITIES
Acquisition of tangible capital assets (excluding capital leases)
 8,318
 9,201
Cash used in capital investment activities
8,318
9,201
FINANCING ACTIVITIES
Payment of capital lease obligations
  81
 116
Cash used in financing activities
81
116
NET CASH PROVIDED BY GOVERNMENT OF CANADA
$133,469
$187,436

 The accompanying notes form an integral part of these Financial Statements.

 

OFFICE OF THE CHIEF ELECTORAL OFFICER
Notes to Financial Statements
For the year ended March 31, 2011

1. Authority and Objectives

The Office of the Chief Electoral Officer (the Office), commonly known as Elections Canada, is headed by the Chief Electoral Officer who is appointed by resolution of the House of Commons and reports directly to Parliament. The Chief Electoral Officer is completely independent of the federal government and political parties. The Office is named in Schedule I.1 of the Financial Administration Act.

The Office's objectives are to enable the Canadian electorate to elect members to the House of Commons in accordance with the Canada Elections Act; to ensure compliance with and enforcement of all provisions of the Canada Elections Act; to calculate the number of members of the House of Commons to be assigned to each province pursuant to the Electoral Boundaries Readjustment Act and in accordance with the provisions of the Constitution Acts; and to provide the necessary technical, administrative and financial support to the ten electoral boundaries commissions, one for each province, in accordance with the Electoral Boundaries Readjustment Act.

The Office is funded by an annual appropriation (which provides for the salaries of permanent, full-time staff) and the statutory authorities contained in the Canada Elections Act, the Referendum Act and the Electoral Boundaries Readjustment Act. These statutory authorities provide for all other expenditures, including the costs of electoral events, maintenance of the National Register of Electors, quarterly allowances to eligible political parties, redistribution of electoral boundaries and continuing public education programs.

The Office's Program Activity Architecture (PAA) contains one program activity, Elections, which is sub-divided into four key programs and Internal Services. The key programs are:

1 - Electoral event delivery, political financing, and compliance and enforcement

This key program includes delivering federal elections, by-elections and referendums as they are required. It also includes administering the provisions of the Canada Elections Act related to political financing. This involves maintaining a registry of political entities and third parties, reviewing financial returns to verify compliance with the statutory provisions, determining the reimbursement or subsidy amount to be paid to a political entity and/or its auditor, publishing financial returns and assisting political entities with compliance through filing extensions and return amendments. Finally, this key program requires Elections Canada to deal with complaints and referrals concerning contraventions of the Canada Elections Act and to address alleged violations.

2 - Electoral event readiness and improvements

This key program includes keeping electoral processes, systems, databases and materials up to date as well as training staff and election officers to be ready for any electoral event. Elections Canada regularly updates the National Register of Electors from the most current data sources. This key program also includes improving electoral events in response to stakeholders' concerns – for example, by implementing new legislation and new registration and voting methods.

3 - Public education and information, and support for stakeholders

This key program informs and educates electors in general, as well as specific groups, about federal electoral events and the federal electoral framework. It aims to ensure that Canadians are informed and aware of major changes to the electoral process and that they understand them. The program also helps Elections Canada evaluate its key activities by developing qualitative and quantitative research to assess its performance in delivering electoral events. Under this key program, the agency provides both parliamentarians and political parties with expertise and technical advice on initiatives regarding electoral legislation.

4 - Electoral boundaries redistribution

This program activity is initiated after each decennial (10 year) census. Federal electoral boundaries and representation in the House of Commons are revised to reflect changes and movements in Canada's population. Independent commissions in each province readjust the federal electoral boundaries with the support of Elections Canada. We provide a variety of professional, financial and administrative services, including assisting with mapping, census data and publications, and maintaining a Web site. The commissions will begin their work once we receive the 2011 census population figures from Statistics Canada (according to current plans, in spring 2012).

2. Summary of Significant Accounting Policies

  1. Basis of presentation – These Financial Statements have been prepared in accordance with Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles, except as disclosed in Note 3 – Net Debt Indicator.

  2. Financial reporting of authorities provided to the Office – The Office operates under two funding authorities: an annual appropriation and statutory authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to Canadian generally accepted accounting principles. They are based in large part on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.

    Note 4 to these Financial Statements provides information regarding the source and disposition of these authorities and provides a high-level reconciliation between the two bases of reporting.

  3. Net cash provided by Government – The Office operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office 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.

  4. Due from the Consolidated Revenue Fund – Amounts due from the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further appropriations in order to discharge its liabilities.

  5. Receivables – Receivables are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.

  6. Consumable supplies – Consumable supplies consist mainly of forms and publications used to administer election events and documents distributed to political entities. These supplies are recorded at weighted average cost. The cost is charged to operations in the period in which the items are consumed. If they no longer have service potential, they are valued at the lower of cost or net realizable value.

  7. Tangible capital assets – Tangible capital assets are recorded at historical cost less accumulated amortization. The Office records as tangible capital assets all expenses providing multi-year benefits and leasehold improvements having an initial cost of $5,000 or more. Similar items less than $5,000 are expensed in the Statement of Operations under small equipment. The Office does not capitalize intangibles. Capital assets acquired for software under development are amortized once that software is put into production.

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

    Asset Class Useful Life
    Office equipment 3 to 10 years
    Informatics equipment 3 years
    Software 3 to 5 years
    Furniture and fixtures 10 years
    Vehicles 5 years
    Motorized equipment 10 years
    Leasehold improvements and capital leases Lesser of the remaining term of the lease or estimated useful life


  8. Salaries and benefits, and vacation leave – Salaries and benefits, and vacation leave are expensed as the salary or benefits accrue to the employees under their respective terms of employment. The employee salaries and benefits liability is calculated based on the respective terms of employment using the employees' salary levels at year end, and the number of days remaining unpaid at the end of the year. The liability for vacation leave is calculated at the salary levels in effect at the end of the year for all unused vacation leave benefits accruing to employees.

  9. Employee future benefits

    1) Pension benefits – Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The Office's contributions to the Plan are charged to expenses in the year incurred and represent the total of the Office's obligation to the Plan. Current legislation does not require the Office to make contributions for any actuarial deficiencies of the Plan.

    2) Severance benefits – Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation related 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.

  10. Contingent liabilities – Contingent liabilities are potential liabilities, which 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 an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the Financial Statements.

  11. Services provided without charge – Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans, audit services and legal services are recorded as operating expenses, at their estimated cost, in the Statement of Operations. A corresponding amount is reported directly in the Statement of Equity of Canada.

  12. Political parties quarterly allowance – The Canada Elections Act allows for the payment from public funds of quarterly allowances to qualifying registered parties. The quarterly allowance is calculated based on the results of the most recent general election preceding the quarter. This allowance is expensed in each quarter of the calendar year as directed by the Act.

  13. Measurement uncertainty – The preparation of Financial Statements in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting year.

    At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant estimates used are contingent liabilities, the liability for employee severance benefits, the useful life of tangible capital assets and candidate and party reimbursement of eligible election expenses. 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. Net Debt Indicator

The presentation of the net debt indicator and a statement of change in net debt is required under Canadian generally accepted accounting principles.

Net debt is the difference between a government's liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventories. Departments are financed by the Government of Canada through appropriations (the Office is also financed through statutory authorities) and operate within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by departments is deposited to the CRF and all cash disbursements made by departments are paid by the CRF. Under this government business model, assets reflected on the departmental financial statements, with the exception of the Due from the CRF, are not available to use for the purpose of discharging the existing liabilities of the department. Future appropriations and any respendable revenues generated by the department's operations would be used to discharge existing liabilities.

(in thousands of dollars)   
  2011 2010
Liabilities
Accounts payable and accrued liabilities
$22,814
$13,951
Accrued employee salaries and benefits
5,254
635
Lease obligation for tangible capital assets (Note 6)
90
159
Provision for vacation leave
1,837
1,736
Deposits from political candidates
97
102
Employee severance benefits (Note 7b)
6,712
5,747
Total Financial Liabilities
36,804
22,330
Financial Assets
Due from the Consolidated Revenue Fund
26,945
14,100
Accounts receivable and advances
2,241
2,190
Total Financial Assets
29,186
16,290
Net Debt Indicator
$ 7,618
$ 6,040

4. Parliamentary Authorities

The Office receives its funding through an annual Parliamentary authority and the statutory authorities contained in the electoral legislation. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Office 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:

  1. Reconciliation of net cost of operations to current year authorities used

    (in thousands of dollars)
      2011 2010
    Net cost of operations
    $159,782
    $143,472
    Adjustments for items affecting net cost of operations but not affecting authorities
    Add (less):
    Amortization of tangible capital assets
    (6,728)
    (6,697)
    Write off of tangible capital assets
    (6,908)
    -
    Consumable supplies
    1,612
    448
    Services provided without charge Government departments
    (8,989)
    (8,085)
    Change in employee severance benefits liability
    (965)
    (86)
    Change in provision for vacation leave
    (101)
    (98)
    Loss on disposal of tangible capital assets
    -
    (23)
    Other
    123
    52
     
    137,826
    128,983
    Adjustments for items not affecting net cost of operations but affecting authorities
    Add (less):
    Acquisition of tangible capital assets (excluding capital leases)
    8,318
    9,201
    Payment of capital lease obligations
    81
    116
    Prepaid expenses
    793
    (538)
    Current year authorities used
    $147,018
    $137,762


  2. Reconciliation of Parliamentary authorities provided to current year authorities used

    (in thousands of dollars)   
      2011 2010
    Authorities provided and used:
    Program expenditures {Vote 15 (Vote 25 in 2010)}
    $31,419
    $30,886
    Statutory contributions to employee benefit plans
    6,757
    6,194
    Other statutory expenditures
    110,036
    104,822
     
    148,212
    141,902
    Less:
    Lapsed authorities – Program expenditures [Vote 15 (Vote 25 in 2010)]
    (1,194)
    (4,140)
    Current year authorities used
    $147,018
    $137,762


5. Tangible Capital Assets

(in thousands of dollars)   
Cost
Capital Asset Class Opening balance Acquisitions Transfers Disposals and write-off Closing balance 2011
Net
book
value
2010
Net
book
value
Office equipment (including capital leases)
$1,266
$308
-
$118
$1,456
$730
$578
Informatics equipment
10,677
856
-
-
11,533
1,721
1,832
Software
28,220
501
$5,808
-
34,529
7,942
6,430
Software under development
10,327
5,504
(5,808)
6,908
3,115
3,115
10,327
Furniture and fixtures
1,706
145
-
-
1,851
565
555
Vehicles and motorized equipment
184
30
-
24
190
90
76
Leasehold improvements
4,666
986
-
-
5,652
2,519
2,190
Total
$57,046
$8,330
$ -
$7,050
$58,326
$16,682
$21,988

 

(in thousands of dollars)   
Accumulated Amortization
Capital Asset Class Opening balance Amortization Disposals and write-off Closing balance
Office equipment (including capital leases)
$688
$156
$118
$726
Informatics equipment
8,845
967
-
9,812
Software
21,790
4,797
-
26,587
Furniture and fixtures
1,151
135
-
1,286
Vehicles and motorized equipment
108
16
24
100
Leasehold improvements
2,476
657
-
3,133
Total
$35,058
$6,728
$142
$41,644

6. Lease Obligation for Tangible Capital Assets

The Office has entered into agreements to rent office equipment under capital lease with a cost of $306,712 and accumulated amortization of $219,652 as at March 31, 2011 ($413,211 and $260,149 respectively as at March 31, 2010). The obligations for the upcoming years include the following:

(in thousands of dollars)  
Maturing year  
2012
$58
2013
27
2014
4
2015
3
2016 and thereafter
   1
Total future minimum lease payments
93
Less: imputed interest (2.15% to 4.82%)
(3)
Lease obligation for tangible capital assets
$90

7. Employee Future Benefits

  1. Pension benefits

    The Office's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. 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.

    The Office's and employees' contributions to the Public Service Pension Plan for the year were as follows:

    (in thousands of dollars)   
      2011 2010
    Office's contributions
    $4,773
    $4,472
    Employees' contributions
    $2,222
    $1,969


    The 2010-11 expense amount represents approximately 2.1 times the contributions by employees.

    The Office'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. Employee severance benefits

    The Office provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31 is as follows:

    (in thousands of dollars)   
      2011 2010
    Accrued benefit obligation, beginning of year $5,747 $5,661
    Expense for the year 1,240 390
    Benefits paid during the year (275) (304)
    Accrued benefit obligation, end of year $6,712 $5,747

8. Contractual Obligations

The nature of the Office's activities can result in some large multi-year contracts and obligations whereby the Office will be obligated to make future payments when the services will be rendered or goods received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)   
2012
48,558
2013
3,086
2014
2,205
2015
223
2016 and thereafter
780
Total
$54,852

9. Contingencies

Claims have been made against the Office in the normal course of operations. Legal proceedings for claims totalling approximately $1,008,368 ($3,450,726 in 2010) were still pending at March 31, 2011. Some of these potential liabilities 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 in the Financial Statements.

No amount was recognized in the Office's Financial Statements for the fiscal year ended March 31, 2011 ($100,000 in 2010).

10. Segmented Information

Presentation by segment is based on the Office program activity 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 key programs of the main activity, by major object of expenses and by major type or revenues. The segment results for the period are as follows:

The key programs are;

KP1: Electoral event delivery, political financing, and compliance and enforcement

KP2: Electoral event readiness and improvements

KP3: Public education and information, and support for stakeholders

KP4: Electoral boundaries redistribution

(in thousands of dollars)  
  2011 2010
  KP1 KP2 KP3 KP4 Internal
Services
Total Total
Transfer Payments
Political parties quarterly allowances
$27,402
       
$ 27,402
$ 27,330
Reimbursement (adjustment) of candidates' and parties' expenses
1,883
       
1,883
(145)
Total Transfer Payments
29,285
       
29,285
27,185
Operating Expenses
Salaries and benefits
11,408
$20,632
$ 6,398
$ 61
$20,049
58,548
49,081
Professional services
3,734
9,863
1,923
378
14,237
30,135
32,013
Rental of equipment and accommodation
1,180
774
42
-
9,661
11,657
9,778
Write off of Fixed Asset
-
6,908
-
-
-
6,908
Travel and communication
1,028
2,716
270
5
2,711
6,730
6,939
Amortization of tangible capital assets
407
2,795
-
-
3,526
6,728
6,697
Repair and maintenance of equipment
818
99
-
-
2,740
3,657
3,856
Advertising, publishing and printing
832
882
1,550
-
163
3,427
4,059
Small equipment
40
154
40
57
1,632
1,923
2,615
Utilities, materials and supplies
130
326
100
-
241
797
1,171
Interest and other charges
(7)
2
-
-
26
21
150
Total Operating Expenses
19,570
45,151
10,323
501
54,986
130,531
116,359
Non Tax Revenue
27
-
-
-
7
34
72
Net Cost of Operations
$48,828
$45,151
$10,323
$501
$54,979
$159,782
$143,472

11. Related Party Transactions

The Office is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations.

The Office enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office expensed $26,150,472 from transactions in the normal course of business with other government departments and agencies. These expenses include services provided without charge from other government departments worth $8,988,695 as presented below.

Services provided without charge:

During the year, the Office received services that were obtained without charge from other government departments and agencies. These services without charge have been recognized in the Office's Statement of Operations as follows:

(in thousands of dollars)   
  2011 2010
Public Works and Government Services Canada - accommodation
$5,354
$5,580
Treasury Board Secretariat - employer's share of insurance premiums
3,468
2,351
Office of the Auditor General of Canada - audit services
163
143
Justice Canada - legal services
-
7
Human Resources and Social Development Canada - employer's portion of Worker's compensation payments
4
4
Total Services provided without charge
$8,989
$8,085

12. Deposits from Political Candidates

The Deposits from political candidates represent the Office's outstanding liability in relation to nomination deposits. Once the CEO is satisfied that the candidates have filed a complete electoral campaign return and that the unused receipts valid for income tax purposes supplied by the returning officer have been returned within one month after polling day, these deposits are refunded.

13. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.