Canadian Grain Commission Revolving Fund, Financial statements, March 31, 2016
- Statement of Management Responsibility Including Internal Control over Financial Reporting
- Independent Auditor’s Report
- Statement of Financial Position
- Statement of operations and net assets
- Statement of Cash Flows
- Notes to Financial Statements
- Authority and purpose
- Significant accounting policies
- Accounts receivable
- Tangible capital assets
- Accounts payable and accrued liabilities
- Salaries payable
- Employee severance benefits liability
- Parliamentary, special and employee termination benefits appropriation
- Net assets
- Contractual obligations
- Contingent liabilities
- Related party transactions
- Transfer of the transition payments for implementing salary payments in arrears
- Financial instruments
- Comparative information
- Unaudited Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting of Canadian Grain Commission Fiscal year 2015-2016
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, 2016, and all information contained in these statements rests with the management of the Canadian Grain Commission (CGC). 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 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 the department's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Commission’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 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 the department, and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting (ICFR).
In accordance with the Policy on Internal Control, internal control activities for the year ended March 31, 2016 are summarized in the annex along with future action plans.
The system of ICFR is designed to mitigate risks to a reasonable level based on an on-going process to assess key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The effectiveness and adequacy of the CGC’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the CGC’s operations. It is also reviewed by the Departmental Audit Committee (DAC), which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting. The DAC reviews the results of annual audit and recommends approval of the financial statements to the Chief Commissioner of the Canadian Grain Commission.
An independent external auditing firm has expressed an opinion on the fair presentation of the financial statements of the CGC which does not include an audit opinion on the annual assessment of the effectiveness of the department’s internal controls over financial reporting.
Acting Deputy Head
May 25, 2016
Chief Financial Officer
May 25, 2016
Independent Auditor’s Report
To the Chief Commissioner, Commissioners and the Departmental Audit Committee of Canadian Grain Commission Revolving Fund
We have audited the accompanying financial statements of the Canadian Grain Commission Revolving Fund, which comprise the statement of financial position as at March 31, 2016 and the statements of operations and net assets, and cash flows for the year then ended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. These financial statements have been prepared by management of the Fund to meet the requirements of Section 6.4 of the Treasury Board of Canada’s Special Revenue Spending Authorities.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Section 6.4 of the Treasury Board of Canada’s Policy on Special Revenue Spending Authorities, and for such internal controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we 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 controls. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Canadian Grain Commission Revolving Fund as at March 31, 2016 and the results of its operations and net assets and its cash flows for the year then ended in accordance with Section 6.4 of the Treasury Board of Canada’s Policy on Special Revenue Spending Authorities.
Basis of accounting and restriction on use
Without modifying our opinion, we draw attention to note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Canadian Grain Commission Revolving Fund to meet the requirements of Section 6.4 of the Treasury Board of Canada’s Policy on Special Revenue Spending Authorities. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the management of the Canadian Grain Commission Revolving Fund and the Treasury Board of Canada and should not be used by parties other than the Canadian Grain Commission Revolving Fund or the Treasury Board of Canada.
Chartered Professional Accountants, Licensed Public Accountants
Statement of Financial Position
|Assets||2016 $||2015 $|
|Cash in transit||84||807|
|Accounts receivable (note 3)||11,192||8,718|
|Tangible capital assets (note 4)|
|Less: accumulated amortization||(20,635)||(23,369)|
|Liabilities and net assets||2016 $||2015 $|
|Accounts payable and accrued liabilities (note 5)||1,718||1,767|
|Salaries payable (note 6)||3,688||3,821|
|Vacation, overtime and compensatory leave payable||1,942||1,854|
|Current portion of employee severance benefits liability (note 7)||220||346|
|Employee severance benefits liability (note 7)||2,439||2,781|
|Net assets (note 9)||8,253||6,760|
|Contractual obligations (note 10)|
|Contingent liabilities (note 11)|
Statement of operations and net assets
|Quality Assurance||Quantity Assurance||Grain Quality Research||Producer Protection||Internal Services||2016 Total||2015 Total|
|Parliamentary appropriations (note 8)||-||-||-||-||5,230||5,230||-||-||245||245||5,475||5,475||5,475|
|License fees and producer cars||-||-||-||-||-||-||1,928||1,940||-||-||1,928||1,940||1,969|
|Special appropriations (note 8)||-||-||-||-||-||-||-||-||-||137||-||137||815|
|Employee termination benefit appropriations (note 8)||-||-||-||-||-||-||-||-||-||-||-||-||1,201|
|Salaries and employee benefits||21,750||20,179||1,491||754||4,969||4,350||2,952||2,669||10,736||10,130||41,898||38,082||38,614|
|Repairs and supplies||972||749||14||9||1,408||1,275||137||77||880||816||3,411||2,926||2,953|
|Amortization of tangible capital assets||1,054||887||73||-||952||872||53||10||972||687||3,104||2,456||2,603|
|Professional and special services||191||107||7||-||290||226||6||10||2,410||2,135||2,904||2,478||1,512|
|Postage and courier||271||229||-||-||100||18||5||90||131||144||507||481||481|
|Loss (gain) on disposal of tangible capital assets||-||-||-||-||-||(9)||-||-||-||3||-||(6)||280|
|Net assets, beginning of year||6,760||5,645|
|Transfer of the transition payments for implementing salary payments in arrears (note 13)||(8)||(1,093)|
|Net financial resources used and change in the accumulated net charge against the Fund’s authority, during the year||(27,802)||(27,674)|
|Net assets, end of year||8,253||6,760|
Statement of Cash Flows
|Operating activities||2016 $||2015 $|
|Net results for the year||29,303||29,882|
|Items not affecting use of funds|
|Amortization of tangible capital assets||2,456||2,603|
|Provision for employee severance benefits||-||(67)|
|Loss (gain) on disposal of tangible capital assets||(6)||264|
|Payment of employee severance benefits||(468)||(2,523)|
|Transition payments for implementing salary payments in arrears||(8)||(1,093)|
|Variations in statement of financial position|
|Cash in transit||723||(313)|
|Accounts payable and accrued liabilities||(50)||571|
|Vacation, overtime and compensatory leave payable||89||(44)|
|Net financial resources provided by operating activities||29,701||31,017|
|Capital investing activities|
|Acquisition of tangible capital assets||(1,907)||(3,343)|
|Proceeds from disposal of tangible capital assets||8||-|
|Net financial resources used by capital investing activities||(1,899)||(3,343)|
|Net financial resources provided and change in the accumulated net charge against the Fund's authority, during the year||27,802||27,674|
|Accumulated net charge against the Fund's authority, beginning of year||63,284||35,610|
|Accumulated net charge against the Fund's authority, end of year||91,086||63,284|
Notes to Financial Statements
1. Authority and purpose
The Canadian Grain Commission Revolving Fund (“CGC”, “the Revolving Fund” or “the Fund”) derives its authority from the Canada Grain Act. The CGC's mandate as set out in the Act is to, in the interest of grain producers, establish and maintain standards of quality for Canadian grain, regulate grain handling in Canada and to ensure a dependable commodity for domestic and export markets.
In order to effectively pursue its mandate, the CGC aims to achieve the following strategic outcome: Canada’s grain is safe, reliable and marketable and Canadian grain producers are properly compensated for grain deliveries to licensed grain companies.
The CGC’s Program Alignment Architecture has five programs: Quality Assurance Program, Quantity Assurance Program, Grain Quality Research Program, and Producer Protection Program. Each contributes to making progress to the sole strategic outcome. The Internal Services program supports all other programs within the CGC.
The Canadian Grain Commission Revolving Fund was established under Appropriation Act No. 6, 1994-1995. The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, tangible capital acquisitions and temporary financing of accumulated operating deficits and drawdown authority of $2,000,000.
The CGC did not request to access its net authority provided from Treasury Board. The CGC received a total of $5,612,526 through the Appropriation Acts approved by Parliament for the fiscal year 2015-2016.
Amendments to the Canada Grain Act came into force on August 1, 2013. In response to both legislative changes and restructured user fees, the CGC adjusted its workforce (note 6), organizational design, and operations. A revised funding model also came into effect on August 1, 2013 that is based on full cost recovery through user fees and ongoing appropriations. Until the implementation of this model, the CGC was funded through its ongoing appropriations, fees collected and special appropriation.
In accordance with the Government’s policy on self-insurance, the CGC does not carry its own insurance. The CGC is not subject to income tax.
2. Significant accounting policies
The financial statements have been prepared in accordance with accounting standards issued by the Treasury Board of Canada Secretariat and the reporting requirements of the Receiver General for Canada. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles because.
- The liabilities for employee termination benefits and severance liability and are based on management’s best estimate rather than actuarial valuations; and
- The services received without charge from other government departments and agencies are not reported as expenses.
The significant accounting policies are as follows.
- a. Use of estimates
- The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the periods covered by the financial statements. The principal financial statement components, subject to measurement uncertainty, include salaries payable related to unsettled labour contracts, the estimated useful life of capital assets and the liabilities for employee vacation, severance benefits and employee termination benefits. Actual results could differ from those estimates. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
- b. Revenue recognition
- Revenue is recognized in the accounting period in which it is earned through the provision of goods or services, or when an event giving rise to a claim has taken place. The majority of service fees such as inspection and weighing activities are dependent on grain volumes handled. Revenues that have been received but not yet earned are presented as deferred revenue. Deferred revenue is primarily received for licensing fees which usually covers a 12-month period.
- c. Expense recognition
- Unless otherwise disclosed, expenses are recorded in the period they are incurred.
- d. Cash in transit
- Cash in transit includes cash and cheques received prior to March 31 but not deposited until the subsequent year.
- e. Parliamentary and employee termination benefit appropriation
- Operations are funded primarily from a permanent authority from Parliament (Revolving Fund) where the CGC is allowed to spend fees collected. Some of the operations of the Grain Quality Research Program and Internal Audit are funded by ongoing Parliamentary appropriation through their annual votes. Special appropriations were also received to cover affected employees’ termination benefits. These appropriations have been recorded as revenue of the Fund.
- f. Accounts receivable
- Accounts receivable are stated at amounts expected to be ultimately realized. Allowances are established for all accounts for which interest or principal payments are 180 days past due.
- g. Tangible capital assets
- Certain assets previously under the custody of the Department of Agriculture and Agri-Food Canada were assumed by the Revolving Fund on April 1, 1995. The assumed assets were considered to be contributed capital and recorded at the Crown's estimated net book value. Assets acquired subsequent to April 1, 1995 were recorded at cost. Proceeds from the disposal of capital assets are retained by the Revolving Fund.
- All capital assets and leasehold improvements with a cost equal to or greater than $10,000 are capitalized at their acquisition cost.
- Assets are amortized on a straight-line basis over their estimated useful lives, commencing in the month after they are put into service, as follows.
|Scientific equipment||5 years|
|Office equipment and furniture||5 years|
|Operational equipment||10 years|
|Motor vehicles||5 years|
|Computer equipment and software||3 years|
|Leasehold improvements||5 years (terms of the leases)|
The costs for assets under construction are capitalized as incurred with amortization commencing in the month after they are put into service.
- h. Vacation, overtime and compensatory leave
- Vacation, overtime and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
- i. Employee severance benefits
- Severance benefits accrue to employees over their years of service with the Government of Canada as stipulated in their collective agreements. The CGC provides for the severance entitlements earned by employees. The obligation relating to the benefits earned by employees is calculated using information derived from management's estimate of the liability.
- j. Employee termination benefits
- Employees affected by the amendments to the Canada Grain Act are entitled to termination benefits, calculated based on salary levels in effect at the time of termination as stipulated in their collective agreements. The obligation is calculated using information derived from management’s estimate of the liability.
- k. Pension plan
- Employees of the CGC are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefit charge assessed against the Revolving Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts. Current legislation does not require the CGC to make contributions for any actuarial deficiencies of the Public Service Superannuation account.
- l. Sick leave
- Employees are permitted to accumulate unused sick leave. However, such leave entitlements do not vest and may only be used in the event of illness. Unused sick leave upon employee termination is not payable to the employee. No amount has been accrued in these financial statements and payments of sick leave benefits are included in current operations as incurred.
3. Accounts receivable
|2016 $||2015 $|
|Other government departments and agencies||41||292|
|Less: Allowance for doubtful accounts from outside parties||(5)||-|
4. Tangible capital assets
|Opening Balance $||Acquisitions $||Disposals $||Closing balance $||Opening balance $||Amortization $||Disposals $||Closing balance $||Net book value $||Net book value $|
|Office equipment and furniture||304||-||(114)||190||304||-||(114)||190||-||-|
|Computer equipment and software||5,689||647||(224)||6,112||4,974||590||(224)||5,340||772||715|
|Assets under construction||590||519||-||1,109||-||-||-||-||1,109||590|
Assets under construction consist of leasehold improvements and in house software development.
5. Accounts payable and accrued liabilities
|2016 $||2015 $|
|Other government departments and agencies||1,065||519|
6. Salaries payable
With the legislative changes to the Canada Grain Act, a segment of the CGC work force became eligible for the provision of termination benefits. As a result, the CGC has recorded an obligation for termination benefits as part of salaries payable to reflect the estimated workforce adjustment costs. As the changes were implemented, employees received their termination benefits and there is a portion of these benefits payable in future years.
|2016 $||2015 $|
|Employee termination liability - Beginning of year||1,162||1,666|
|Expense for the year||(608)||715|
|Benefits paid during the year||(453)||(1,219)|
|Employee termination liability - End of year||101||1,162|
|Other salary costs including benefits||3,587||2,659|
7. Employee severance benefits liability
The CGC provides severance benefits to its employees based on eligibility, years of service and final salary. These benefits are currently calculated based on the actual severance owed to each employee.
With Budget 2011, the Government of Canada announced its intention to eliminate the ongoing accumulation of severance benefits. All collective agreements for the CGC have been negotiated and severance benefits have ceased to accumulate. Employees were given the option to liquidate immediately or collect upon departure from the public service.
|2016 $||2015 $|
|Employee termination liability - Beginning of year||3,127||5,717|
|Expense for the year||-||(67)|
|Benefits paid during the year||(468)||(2,523)|
|Employee severance benefits liability - End of year||2,659||3,127|
|Current portion of employee severance benefits liability||(220)||(346)|
|Long-term portion of employee severance benefits liability||2,439||2,781|
8. Parliamentary, special and employee termination benefits appropriation
The CGC is financed by the Government of Canada through a combination of an ongoing Parliamentary appropriation, authority to re-spend fees collected, accumulated surpluses from prior years and a revolving line of credit of $2,000,000.
The government funding basis is used to recognize transactions affecting Parliamentary appropriations. The statement of operations and net assets is based on accrual accounting. Consequently, items presented in the statement of operations and net assets are not necessarily the same as those provided through appropriations from Parliament. Items recognized in the statement of operations and net assets in one year may be funded through Parliamentary authorities in prior, current, or future years. Accordingly, the CGC has different appropriation authorities for the year on a government funding basis than on an accrual accounting basis. Details on appropriation authorities provided and used are shown in the following tables.
Appropriation authorities provided and used.
|2016 $||2015 $|
|Total appropriation funds provided||5,719||9,262|
|Employee termination benefits:|
|Frozen allotment (lapsed)||-||(10)|
|Current year appropriation funds provided and used||5,612||7,491|
Total current year appropriation funds provided and used by type consists of:
|2016 $||2015 $|
|Employee termination benefits appropriation||-||1,201|
|Current year appropriation funds provided and used||5,612||7,491|
9. Net assets
Contributed capital represents the value of capital assets financed from capital contributions at the inception of the Fund.
The accumulated surplus is the accumulation of each fiscal year’s surplus net of deficits since the inception of the Fund.
The accumulated net charge against the Fund's authority represents the cumulative receipts and disbursements over the life of the Fund.
|2016 $||2015 $|
|Transfer of the transition payments from implementing salary payments in arrears||(8)||(1,093)|
|Accumulated net charge against the Fund’s authority|
|Change in net resources provided||(27,802)||(27,674)|
|Total net assets||8,253||6,760|
10. Contractual obligations
CGC leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the CGC and Public Services and Procurement Canada, recording the terms and conditions that govern the provision and occupancy of the accommodation. CGC has a total of 15 separate occupancy agreements with various term lengths. Expected future payouts are as follows.
|2021 and thereafter||7,460|
11. Contingent liabilities
In the normal course of its operations, CGC may become involved in various legal actions. 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 is recorded in the financial statements. As at March 31, 2016, one claim is outstanding against CGC, as noted below.
Grievances have been filed against the CGC with respect weekend premiums as stated in a collective agreement. The matters are still to be scheduled for adjudication and the outcome of these claim is not determinable at this time. No accrual for this contingency has been made in the financial statements.
12. Related party transactions
The CGC is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The CGC enters into transactions with these entities at arm’s length in the normal course of business and on normal trade terms.
Services provided by other government departments
During the year, the CGC paid occupancy costs and certain professional services to other government departments or agencies. Employer's health insurance plan contributions and employee benefit plans were also provided by and paid to other government departments. Significant services have been recognized in the CGC statement of operations and net assets as follows.
|2016 $||2015 $|
|Employer's contribution to employee benefit plans||7,390||7,475|
|Professional and special services|
|Audit and accounting services||615||25|
Included in accounts receivable, accounts payable, and salaries payable at year-end are the following amounts with related parties.
|2016 $||2015 $|
|Employer’s contribution to employee benefit plans payable||644||680|
13. Transfer of the transition payments for implementing salary payments in arrears
The Government of Canada implemented salary payments in arrears in 2014-15. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay process. This change to the pay system had no impact on the expenses of the Revolving Fund. However, it did result in the use of authorities by the Revolving Fund and impacted the accumulated net charge against the Fund’s authority (ANCAFA). Prior to year-end, transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Services and Procurement Canada, who is responsible for the administration of the Government pay system.
14. Financial instruments
The Revolving Fund's financial instruments consist of cash in transit, accounts receivable, accounts payable and accrued liabilities, salaries payable, vacation, overtime and compensatory leave payable, and employee severance benefits. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity, except for employee severance benefits and employee termination benefits which are based on management's best estimate. Unless otherwise noted, it is management's opinion that the Revolving Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.
Financial instruments that potentially subject the CGC to concentrations of credit risk consist primarily of trade accounts receivable. For the year ended March 31, 2016, six large integrated organizations accounted for $5,183,527 or 93% of the CGC's outside parties receivable balances (2015 - six organizations, $3,768,507 or 89%).
15. Comparative information
Certain comparative figures have been reclassified to conform to the current year's presentation.
Unaudited Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting of Canadian Grain Commission Fiscal year 2015-2016
This document provides unaudited summary information on the measures taken by the Canadian Grain Commission (CGC) to maintain an effective system of internal control over financial reporting (ICFR) including information on internal control management, assessment results and related action plans.
2. Departmental System of Internal Control over Financial Reporting
2.1 Internal Control Management
The CGC has an established governance and accountability structure which sets the “tone from the top” for effectively managing and supporting departmental assessment efforts and oversight of ICFR. A departmental internal control management framework, approved by the Deputy Head, is in place and includes:
- Organizational roles and responsibilities as they relate to ICFR to support sound financial management;
- Activities to ensure that key internal controls are assessed and periodically reassessed using a risk-based approached and that corrective action is taken where necessary; and
- Regular monitoring of and updates on internal control management, including assessment results and action plans, to the Deputy Head, the Executive Management Committee (EMC) and the Departmental Audit Committee (DAC).
2.2 Service Arrangements Relevant to Financial Statements
The CGC relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows.
- Public Services and Procurement Canada (PSPC) centrally administers the payments of salaries and the procurement of some goods and services in accordance with the CGC's Delegation of Authority, as well as provides accommodation services;
- The Treasury Board of Canada Secretariat provides the CGC with information used to calculate various accruals and allowances;
- The Department of Justice provides legal counsel on litigation and advisory services relating to the CGC's legal requirements; and
- Shared Services Canada provide information technology (IT) infrastructure services to the CGC in the areas of data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between Shared Services Canada and the CGC.
- Agriculture and Agri-Food Canada (AAFC) provides the CGC with a SAP financial platform to capture and report financial transactions and with a Peoplesoft platform to capture and report leave and pay related transactions. As a result, reliance is placed on the control procedures of AAFC.
3. Departmental Assessment Results during Fiscal Year 2015-2016
All ICFR activities were rescheduled to subsequent years to allow resources to be allocated to the implementation of a new departmental financial management system effective April 1, 2016 and other organizational priorities.
4. Departmental Action Plan
4.1 Progress during Fiscal Year 2015-2016
Below is a summary of the progress made by the Department based on the plans identified in the previous fiscal year’s annex:
|Previous year’s rotational ongoing monitoring plan for current year||Status|
|Entity level controls||All ICFR activities were rescheduled to subsequent years to allow resources to be allocated to the implementation of a new departmental financial management system effective April 1, 2016 and other organizational priorities.|
|Capital assets||All ICFR activities were rescheduled to subsequent years to allow resources to be allocated to the implementation of a new departmental financial management system effective April 1, 2016 and other organizational priorities.|
4.2 Status and Action Plan for the Next Fiscal Year and Subsequent Years
The CGC’s rotational on-going monitoring plan over the next three years, based on an annual validation of the high-risk processes and controls and related adjustments to the ongoing monitoring plan as required, is shown in the following table:
|Key Control Areas||Fiscal 2016-17||Fiscal 2017-18||Fiscal 2018-19|
|Entity level controls||Yes||No||No|
|IT general controls under departmental management||No||Yes||No|
|Purchase to Pay||No||No||Yes|
In accordance with CGC’s On-Going Monitoring Plan, processes and sub-processes will be assessed over a three-year cycle, with high and medium ranked processes being assessed more frequently than low ranked processes.
In addition to planned on-going monitoring activities, regular follow-up on past remediation plans for all key control areas will be performed.
- Date modified: