Geomatics Canada

Public Accounts of Canada 2023 Volume III—Top of the page Navigation

Statement of management responsibility

We have prepared the accompanying financial statements of the Geomatics Canada Revolving Fund as required by and in accordance with the Treasury Board Directive on Charging and Special Financial Authorities and the reporting requirements and standards of the Receiver General for Canada. These financial statements were prepared by management of the Fund in accordance with the significant accounting policies set out in note 2 of the financial statements, on a basis consistent with that of the preceding year.

Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. In order to fulfill its accounting and reporting responsibilities, the Fund maintains a set of accounts, which provides a centralized record of the Fund's financial transactions and also benefits from the advice of accounting personnel of Corporate Management and Services Sector. Financial information contained in the ministerial statements and elsewhere in the Public Accounts of Canada is consistent with that in these financial statements, unless indicated otherwise.

Corporate Management and Services Sector develops and disseminates financial management and accounting policies and issues specific directives, which maintains standards of accounting and financial management. Transactions are executed in accordance with prescribed regulations, within parliamentary authorities and are properly recorded to maintain accountability of Government funds and safeguard the Fund's assets. Financial management and internal control systems are maintained at appropriate costs and are augmented by the maintenance of internal audit programs. Management also seeks to assure the objectivity and integrity of data in its financial statements. This is accomplished by a careful selection, training and development of qualified staff, organizational arrangements that provide appropriate divisions of responsibility and communication programs aimed at ensuring that its regulations, policies, standards and managerial authorities are understood throughout the organization.

Approved by:

Grace Chennette, CPA, CMA
Deputy Chief Financial Officer
Finance and Procurement Branch

Shirley Carruthers, CPA, CGA
Assistant Deputy Minister and Chief Financial Officer
Corporate Management and Services Sector

June 9, 2023
Ottawa, Canada

Table 1:Statement of authority provided (used) (unaudited) for the year ended March 31, 2023
(in thousands of dollars)
  2023 2022
EstimatesLink to table note 1 Actual EstimatesLink to table note 1 Actual
Net results 100 1,517 100 399
Items not requiring use of funds – 264 – 163
Operating source of funds 100 1,781 100 562
Items requiring use of funds
Net tangible capital assets acquisitions – (negative 89) – (negative 689)
Net other assets (liabilities) – (negative 14) – (negative 57)
Authority provided (used) 100 1,678 100 (negative 184)

Table 2:Reconciliation of unused authority (unaudited) as at March 31, 2023
(in thousands of dollars)
  2023 2022
Debit balance in the accumulated net charge against the Fund's authority account 4,673 3,469
Payables at year-end charged against the appropriation account after March 31 (negative 389) (negative 863)
Net authority provided, end of year 4,284 2,606
Authority limit 5,000 5,000
Unused authority carried forward 9,284 7,606

Table 3:Statement of financial position (unaudited) as at March 31, 2023
(in thousands of dollars)
  2023 2022
Assets
Financial assets
Accounts receivable (note 3) 190 276
Inventory 48 48
Total financial assets 238 324
Non-financial assets
Tangible capital assets (note 4) 712 887
Total assets 950 1,211
Liabilities and Net Assets (Liabilities)
Accounts payable and accrued liabilities (note 5) 370 913
Vacation pay 121 152
Total liabilities 491 1,065
Net assets (liabilities) (note 6) 459 146
Total 950 1,211

Approved by:

Frank Des Rosiers
Assistant Deputy Minister
Strategic Policy and Innovation Sector

June 8, 2023

Table 4:Statement of operations and net assets (liabilities) (unaudited) for the year ended March 31, 2023
(in thousands of dollars)
  2023 2022
Revenues
Services 6,469 6,220
Products 464 1,062
Total revenues 6,933 7,282
Expenses
Salaries and employee benefits 1,262 1,667
Professional and special services 3,118 3,953
Corporate and sector services 362 473
Rentals 286 386
Amortization of tangible capital assets 264 163
Utilities, materials and supplies 41 111
Transportation and telecommunications 38 –
Repairs and maintenance 30 100
Other expenses 15 30
Total expenses 5,416 6,883
Net results 1,517 399
Net assets (liabilities), beginning of year 146 250
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority, during the year (negative 1,204) (negative 503)
Net assets (liabilities), end of year 459 146

Table 5:Statement of cash flows (unaudited) for the year ended March 31, 2023
(in thousands of dollars)
  2023 2022
Operating activities
Net results for the year 1,517 399
Items not requiring use of funds
Amortization of tangible capital assets (note 4) 264 163
Subtotal 1,781 562
Variations in the statement of financial position
Decrease in accounts receivable (note 3) 86 88
Decrease (increase) in prepaid expenses – 17
Increase (decrease) in accounts payable and accrued liabilities (note 5) (negative 543) 521
Increase (decrease) in vacation pay (negative 31) 4
Net financial resources provided by operating activities 1,293 1,192
Capital investing activities
Acquisition of tangible capital assets (note 4) (negative 89) (negative 689)
Net financial resources used in capital investing activities (negative 89) (negative 689)
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year 1,204 503
Accumulated net charge against the Fund's authority, beginning of year 3,469 2,966
Accumulated net charge against the Fund's authority, end of year 4,673 3,469

Notes to the financial statements (unaudited) for the year ended March 31, 2023

1. Authority and purpose

The Geomatics Canada Revolving Fund (the Fund) was originally established under Appropriation Act No. 3 1993–1994 as the "Surveys, Mapping and Remote Sensing Sector Revolving Fund" and approval was conditional on specified conditions. The purpose of the Fund was to shift the costs of offering goods and services from taxpayers to those specific users who directly benefit from them. Subsequently, on December 8, 1994, the "Surveys, Mapping and Remote Sensing Sector Revolving Fund" was renamed the "Geomatics Canada Revolving Fund". Having met its specified conditions, permanent continuing authority for the Fund was obtained from and registered with the Treasury Board of Canada on February 9, 1995.

The Fund has received a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, capital acquisitions and temporary financing of accumulated operating deficits, the total of which at any time is not to exceed $5,000,000.

The Fund's mandate is to produce geomatics products, services and expertise that can be exploited commercially. Revenue-generating activities further build on this work to produce saleable products or services for specific clients in the federal government, Canadian industry, Canadian public, provinces, territories and other countries.

2. Summary of significant accounting policies

The financial statements have been prepared in accordance with the reporting requirements of the Receiver General for Canada for revolving funds. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because:

The significant accounting policies are as follows:

(a) Use of estimates

The preparation of financial statements 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 revenues and expenses during the reporting period. The most significant estimates used in the preparation of the financial statements are the amount of certain accrued liabilities and the estimated useful lives of capital assets. Actual results could differ from these estimates. These estimates are reviewed annually and as adjustments become necessary, they are recorded in the financial statements in the period in which they become known.

(b) Revenues

Revenues are recognized when products are sold or services rendered. Revenues on leases are recognized in the period to which the lease or use of property relates.

(c) Expenses

Unless otherwise disclosed, expenses are recorded in the period they are incurred. Internal service costs of Natural Resources Canada incurred on behalf of the Fund are recorded in these financial statements as corporate and sector service costs.

(d) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables when a recovery is considered uncertain.

(e) Inventory

The inventory of maps is valued at the lower of cost or net realizable value, with cost being determined using the weighted average cost of each title.

(f) Tangible capital assets

Tangible capital assets purchased by the Fund are recorded at cost. These assets are amortized on a straight-line basis over their estimated useful lives, commencing with the month subsequent to acquisition. The estimated useful lives of these assets are as follows:

Machinery and equipment                                  5 to 10 years
Informatics hardware                                           4 to 10 years
Computer software                                               4 years
Other equipment (including furniture)             10 years
Motor vehicles                                                       5 to 7 years

(g) Pension benefits

The Public Service Superannuation Act and the Supplementary Retirement Benefits Act cover employees of Natural Resources Canada whose salaries and other benefits are paid by the Fund. The Government's portion of the pension cost is included in the employee benefits expenses assessed against the Fund. Actual pension payments are made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts. The Fund is not required under present legislation to make contributions with respect to actuarial deficiencies of the Public Service Superannuation Account and/or with respect to charges to the Consolidated Revenue Fund for the indexation of payments under the Supplementary Retirement Benefits Act.

(h) Vacation pay

Vacation pay is expensed as the benefits accrue to employees under their respective terms of employment.

(i) 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. Payments of sick leave benefits are included in current operations as incurred.

3. Accounts receivable

(in thousands of dollars)

  2023 2022
Other government departments and agencies 32 103
Outside parties 162 177
Subtotal 194 280
Allowance for doubtful accounts on receivables from outside parties (negative 4) (negative 4)
Net accounts receivable 190 276

4. Tangible capital assets

(in thousands of dollars)

  Balance at beginning of year Acquisitions Adjustments, Disposals and Write-Offs Balance at end of year
Machinery and equipment 520 89 – 609
Informatics hardware 669 – – 669
Computer software 144 – – 144
Other equipment (including furniture) 38 – – 38
Motor vehicle 31 – – 31
Total 1,402 89 – 1,491

Table 8:Accumulated amortization
(in thousands of dollars)
  Balance beginning of year Amortization Adjustments, Disposals and Write-Offs Balance end of year
Machinery and equipment 64 68 3 135
Informatics hardware 311 152 (negative 2) 461
Computer software 108 36 – 144
Other equipment (including furniture) 16 4 (negative 1) 19
Motor vehicle 16 4 – 20
Total 515 264 – 779

Table 9:Net book value
(in thousands of dollars)
  2023 2022
Machinery and equipment 474 456
Informatics hardware 208 358
Computer software – 36
Other equipment (including furniture) 19 22
Motor vehicle 11 15
Total 712 887

5. Accounts payable and accrued liabilities

(in thousands of dollars)

  2023 2022
Other government departments and agencies 261 328
Outside parties 109 585
Total 370 913

6. Net assets (liabilities)

The accumulated net charge against the Fund's authority is the non-lapsing authority amount that has been used since the inception of the Fund.

The accumulated surplus is an accumulation of each year's surpluses and deficits including the absorption of the opening net assets upon establishment of the Fund.

Contributed capital represents the value of capital assets financed from capital contributions at the inception of the Fund.

(in thousands of dollars)

  2023 2022
Contributed capital 1,438 1,438
Accumulated net charge against the Fund's authority (negative 4,673) (negative 3,469)
Transfer of the transition payments for implementing salary payments in arrears (negative 20) (negative 20)
Accumulated surplus 3,714 2,197
Net assets 459 146

7. Contractual rights

In some instances, the activities of the Fund involve the negotiation of contracts or agreements with outside parties that result in the Fund having rights to both assets and revenues in the future. They principally involve revenues related to the provision of services. Major contractual rights that will generate revenues in the future years and that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

   
2024 796
2025 773
2026 112
2027 106
2028 and thereafter 424
Total 2,211

8. Contingent liabilities

In the normal course of its operations, the Fund 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 recorded in the financial statements. As at March 31, 2023, there were no claims outstanding against the Fund.

9. Contractual obligations

The nature of the Fund's activities can result in some large multi-year contracts and obligations whereby the Fund will be obligated to make future payments in order to carry out its mandate, or when services are performed or goods received. Significant contractual obligations that can be reasonably estimated by fiscal years ending March 31 are summarized as follows:

(in thousands of dollars)

   
2024 329
2025 51
2026 34
2027 35
2028 and thereafter 831
Total 1,280

10. Related party transactions

Through common ownership, the Fund is related to all Government of Canada departments, agencies and Crown corporations. The Fund enters into transactions with such entities in the normal course of business, and these have been recorded at the exchange amount.

Public Accounts of Canada 2023 Volume III—Bottom of the page Navigation

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