Financial Statements
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 the Department of Justice. 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 the Department of Justice’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Department of Justice’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 the Department of Justice 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 annex also provides information on the status of the risk-based assessment of the controls over common services provided by the department that have a bearing on a recipient's departmental financial statements.
The effectiveness and adequacy of the Department of Justice’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Department of Justice'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 the Department of Justice.
The financial statements of the Department of Justice have not been audited.
Original signed by Nathalie G. Drouin
Me Nathalie G. Drouin, Ad. E.
Deputy Minister and
Deputy Attorney General of Canada
Original signed by Johanne Bernard
Johanne Bernard, CPA, CMA
Assistant Deputy Minister,
Chief Financial Officer
Ottawa, Canada
Date: August 20, 2019
| 2019 | 2018 | |
|---|---|---|
| Liabilities | ||
| Accounts payable and accrued liabilities (note 4) | 103,153 | 81,039 |
| Family Law account (note 5) | 2,912 | 4,587 |
| Transfer payments payable | 289,019 | 291,776 |
| Vacation pay and compensatory leave | 30,079 | 24,258 |
| Employee Future benefits (note 6) | 20,774 | 21,854 |
| Total liabilities | 445,937 | 423,514 |
| Financial assets | ||
| Due from Consolidated Revenue Fund | 383,630 | 356,010 |
| Accounts receivable and advances (note 7) | 24,356 | 30,249 |
| Total gross financial assets | 407,986 | 386,259 |
| Financial assets held on behalf of Government | ||
| Accounts receivable and advances (note 7) | (803) | (891) |
| Total net financial assets | 407,183 | 385,368 |
| Departmental net debt | 38,754 | 38,146 |
| Non-financial assets | ||
| Prepaid expenses | 54 | 59 |
| Tangible capital assets (note 8) | 44,026 | 38,845 |
| Total non-financial assets | 44,080 | 38,904 |
| Departmental net financial position | 5,326 | 758 |
Contractual obligations (note 9)
Contingent liabilities (note 10)
The accompanying notes form an integral part of these financial statements.
Original signed by Nathalie G. Drouin
Me Nathalie G. Drouin, Ad. E.
Deputy Minister and
Deputy Attorney General of Canada
Original signed by Johanne Bernard
Johanne Bernard, CPA, CMA
Assistant Deputy Minister,
Chief Financial Officer
Ottawa, Canada
Date: August 20, 2019
| 2019 Planned Results | 2019 | 2018 Reclassified (Note 13) | |
|---|---|---|---|
| Expenses | |||
| Legal Services | 493,924 | 590,829 | 515,242 |
| Justice System Support | 473,006 | 457,532 | 433,606 |
| Internal Services | 101,925 | 158,793 | 155,029 |
| Total expenses | 1,068,855 | 1,207,154 | 1,103,877 |
| Revenues | |||
| Legal Services | 330,918 | 369,865 | 356,709 |
| Family Law fees | 8,502 | 6,934 | 8,245 |
| Common Services | 2,522 | 2,852 | 2,832 |
| Other revenues | 761 | 2,923 | 1,904 |
| Revenues earned on behalf of Government | (46,503) | (52,018) | (53,382) |
| Total revenues | 296,200 | 330,556 | 316,308 |
| Net cost of operations before government funding and transfers | 772,655 | 876,598 | 787,569 |
| Government funding and transfers | |||
| Net cash provided by Government of Canada | 762,395 | 639,462 | |
| Change in due from Consolidated Revenue Fund | 27,620 | 62,912 | |
| Services provided without charge by other government departments (note 11a) | 91,269 | 89,079 | |
| Transfer of the transition payments for implementing salary payments in arrears | - | (8) | |
| Other transfers of assets (to) / from other government departments | (118) | 27 | |
| Total government funding and transfers | 881,166 | 791,472 | |
| Net cost of operations after government funding and transfers | (4,568) | (3,903) | |
| Departmental net financial position - Beginning of year | 758 | (3,145) | |
| Departmental net financial position - End of year | 5,326 | 758 | |
Segmented information (note 12)
The accompanying notes form an integral part of these financial statements.
| 2019 | 2018 | |
|---|---|---|
| Net cost of operations after government funding and transfers | (4,568) | (3,903) |
| Change due to tangible capital assets | ||
| Acquisitions of tangible capital assets (note 8) | 13,028 | 14,218 |
| Amortization of tangible capital assets (note 8) | (7,469) | (9,013) |
| Net loss on disposal of tangible capital assets including adjustments | (378) | (18) |
| Total change due to tangible capital assets | 5,181 | 5,187 |
| Change due to prepaid expenses | (5) | (8) |
| Net decrease in departmental net debt | 608 | 1,276 |
| Departmental net debt - Beginning of year | 38,146 | 36,870 |
| Departmental net debt - End of year | 38,754 | 38,146 |
The accompanying notes form an integral part of these financial statements.
| 2019 | 2018 | |
|---|---|---|
| Operating activities | ||
| Net cost of operations before government funding and transfers | 876,598 | 787,569 |
| Non-cash items: | ||
| Amortization of tangible capital assets (note 8) | (7,469) | (9,013) |
| Net loss on disposal of tangible capital assets including adjustments | (378) | (18) |
| Services provided without charge by other government departments (note 11a) | (91,269) | (89,079) |
| Transition payments for implementing salary payments in arrears | - | 8 |
| Variations in Statement of Financial Position: | ||
| Decrease in accounts receivable and advances | (5,805) | (336) |
| Decrease in prepaid expenses | (5) | (8) |
| Increase in accounts payable and accrued liabilities | (22,114) | (2,942) |
| Decrease (increase) in Family Law account | 1,675 | (970) |
| Decrease (Increase) in transfer payments payable | 2,757 | (58,216) |
| Increase in vacation pay and compensatory leave | (5,821) | (2,973) |
| Decrease in employee future benefits | 1,080 | 1,249 |
| Other transfer of assets to / (from) other government departments | 118 | (27) |
| Cash used in operating activities | 749,367 | 625,244 |
| Capital investing activities | ||
| Acquisitions of tangible capital asset | 13,028 | 14,218 |
| Cash used in capital investing activities | 13,028 | 14,218 |
| Net cash provided by Government of Canada | 762,395 | 639,462 |
The accompanying notes form an integral part of these financial statements.
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