Translation Bureau Revolving Fund

Public Accounts of Canada 2024 Volume III—Top of the page Navigation

Statement of management responsibility

We have prepared the accompanying financial statements of the Translation Bureau Revolving Fund as required by the Treasury Board Directive on Charging and Special Financial Authorities in accordance with the Receiver General reporting requirements. These financial statements were prepared by the 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. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Department's Departmental Results Report is consistent with these financial statements.

Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of accounting and financial management. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of Government funds and safeguard the assets under the Fund's administration. Financial management and internal control systems are augmented by the maintenance of internal audit programs. Management also seeks to ensure the objectivity and integrity of data in its financial statements by the careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that its regulations, policies, standards and managerial authorities are understood throughout the organization.

Approved by:

Wojo Zielonka, CPA
Assistant Deputy Minister and Chief Financial Officer
Public Services and Procurement Canada

Jean-François Lymburner
Chief Executive Officer
Translation Bureau
Public Services and Procurement Canada

June 13, 2024
Gatineau, Canada

**Table 1Statement of authority provided (used) (unaudited) for the year ended March 31, 2024**^{Links to footnote * in table 1}
(in thousands of dollars)
	Estimates^{Links to footnote 1 in table 1}	Actual	Estimates^{Links to footnote 1 in table 1}	Actual
	2024		2023
Net results	(negative 4,797)	(negative 4,284)	(negative 4,430)	(negative 1,368)
Items not requiring use of funds
Amortization	1,846	1,980	2,646	1,940
Operating source (use) of funds	(negative 2,951)	(negative 2,304)	(negative 1,784)	572
Items requiring use of funds
Net tangible capital assets acquisitions	(negative 1,832)	(negative 808)	(negative 2,778)	(negative 1,524)
Transfer of salary overpayments between government departments	–	31	–	16
Net other assets and liabilities	(negative 3,285)	(negative 3,516)	(negative 2,790)	3,028
Authority provided (used)	(negative 8,068)	(negative 6,597)	(negative 7,352)	2,092
Table 1 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 1 Table note 1 The amounts in the current and previous year "Estimates" columns result from, when available, the current year's Estimates, Part II—Main Estimates. Return to table note 1 referrer in Table 1

**Table 2Reconciliation of unused authority (unaudited) as at March 31, 2024**
(in thousands of dollars)
	2024	2023
Credit balance in the accumulated net charge against the Fund's authority	(negative 3,180)	(negative 2,094)
Payables charged against the appropriation at year-end	(negative 14,510)	(negative 12,139)
Receivables credited to the appropriation at year-end	3,276	6,456
Other items	9,157	9,117
Net authority provided (used), end of year	(negative 5,257)	1,340
Authority limit (note 1)	30,000	30,000
Unused authority carried forward	24,743	31,340

**Table 3Statement of financial position (unaudited) as at March 31, 2024**
(in thousands of dollars)
Assets
	2024	2023
Financial assets
Accounts receivable (note 3)	5,069	9,015
Other assets (note 4)	2,042	2,109
Total financial assets	7,111	11,124
Non-financial assets
Prepaid expenses	2	2
Tangible capital assets (note 5)	7,276	8,448
Total non-financial assets	7,278	8,450
Total assets	14,389	19,574
Liabilities
Accounts payable and accrued liabilities (note 6)	14,528	16,523
Vacation pay and compensatory leave	4,628	4,658
Employee severance benefits (note 7)	2,281	2,274
Total liabilities	21,437	23,455
Net liabilities (note 8)	(negative 7,048)	(negative 3,881)
Total	14,389	19,574
Table 3 notes General notes: Contractual obligations (note 9) Contingent liabilities (note 10) The accompanying notes form an integral part of these financial statements.

**Table 4Statement of operations and net liabilities (unaudited) for the year ended March 31, 2024**
(in thousands of dollars)
Revenues
	2024	2023
Translation services	132,274	131,082
Interpretation services	21,560	21,213
Terminology services	15,765	14,220
Other	11,676	10,125
Total revenues	181,275	176,640
Operating expenses
Salaries and employee benefits	124,716	111,496
Professional and special services	34,283	37,416
Corporate and administrative services	18,173	20,272
Occupancy costs	2,249	3,809
Amortization (note 5)	1,980	1,940
Transportation and telecommunications	1,833	1,760
Other expenses	1,337	652
Interest from drawdown authority limit	463	186
Utilities, materials and supplies	429	526
Employee severance benefits (note 7)	96	(negative 49)
Total operating expenses	185,559	178,008
Net results	(negative 4,284)	(negative 1,368)
Net liabilities, beginning of year	(negative 3,881)	(negative 1,168)
Transfer of salary overpayments between government departments	31	16
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year (note 8)	1,086	(negative 1,361)
Net liabilities, end of year (note 8)	(negative 7,048)	(negative 3,881)
Table 4 notes General notes: The accompanying notes form an integral part of these financial statements.

**Table 5Statement of cash flows (unaudited) for the year ended March 31, 2024**^{Links to footnote * in table 5}
(in thousands of dollars)
Operating activities
	2024	2023
Net results	(negative 4,284)	(negative 1,368)
Items not requiring use of funds
Amortization of tangible capital assets (note 5)	1,980	1,940
Subtotal	(negative 2,304)	572
Variations in statement of financial position
Decrease (increase) in accounts receivable	3,946	(negative 2,038)
Decrease (increase) in other assets	67	(negative 517)
Decrease (increase) in prepaid expenses	–	(negative 1)
Increase (decrease) in accounts payable and accrued liabilities	(negative 1,995)	5,658
Increase (decrease) in vacation pay and compensatory leave	(negative 30)	(negative 469)
Increase (decrease) in employee severance benefits	7	(negative 336)
Total variations in statement of financial position	1,995	2,297
Transfer of salary overpayments between government departments	31	16
Net financial resources provided (used) by operating activities	(negative 278)	2,885
Capital investing activities
Acquisitions of tangible capital assets (note 5)	(negative 808)	(negative 1,524)
Net financial resources used by capital investing activities	(negative 808)	(negative 1,524)
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority, during the year (note 8)	(negative 1,086)	1,361
Accumulated net charge against the Fund's authority, beginning of year	(negative 2,094)	(negative 3,455)
Accumulated net charge against the Fund's authority, end of year	(negative 3,180)	(negative 2,094)
Table 5 notes General notes: The accompanying notes form an integral part of these financial statements. Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 5

Notes to the financial statements (unaudited) for the year ended March 31, 2024

1. Authority and purpose

The Translation Bureau Revolving Fund (the Fund) is a Special Operating Agency that provides, on a cost recovery basis, translation, technolinguistic and other linguistic services to the judiciary and federal departments and agencies and, upon request, to other governments in Canada and international organizations. Although the Translation Bureau has existed since 1934, when the Translation Bureau Act came into effect, it was not until April 1993 that the Treasury Board approved the establishment of the Bureau as a Special Operating Agency, effective April 1, 1995. The Translation Bureau also became a revolving fund on April 1, 1995.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $30,000,000 at any time. Previously at $20,000,000, the authority limit was increased to $30,000,000 in 2021–2022 through the Appropriation Act No. 5, 2021–22.

2. Significant accounting policies

These financial statements have been prepared in accordance with the significant accounting policies set out below to comply with the reporting requirements for revolving funds described in Section 1 of the Receiver General for Canada Instructions for Volume III of the Public Accounts of Canada. The basis of accounting used in these financial statements differs from Canadian public sector accounting standards mainly because:

no liability is recorded for sick leave
the net debt indicator and statement of changes in net debt are not presented in the financial statements
budgeted expenses are not disclosed in the Statement of operations and net liabilities
employee severance benefits liability is based on actuarial valuations for the Government as a whole provided by the Treasury Board of Canada Secretariat to management
contractual rights, financial instruments and inter-entity transactions and related parties disclosures are not presented in the financial statements

The significant accounting policies are as follows:

(a) Revenue recognition

Revenues are comprised of revenues earned from non-tax sources. They include exchange transactions where goods or services are provided for consideration where a performance obligation exists. A performance obligation consists of an enforceable promise to provide specific goods or services to a specific client. These Fund's revenue transactions are recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonably expected to be earned again in future years. Revenues are recorded when performance obligations are satisfied and collection is reasonably certain, as describe below:

Revenues from translation services performed by the Fund for other government departments and agencies and external clients are recognized based on the percentage of completion of the project which is determined by the proportion of translation work completed at year end. Progress is measured by assessing the volume of translated material against the total scope of required services.

Revenues from the terminology standardization program, interpretation services, and other services are recognized as services are rendered.

(b) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized. An allowance is made for receivables where recovery is considered uncertain. Accounts receivable include the estimated amount of revenue earned for services rendered but not billed at year end.

(c) Expense recognition

All expenses are recorded on an accrual basis in the year they are incurred.

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective conditions of employment.

(d) Tangible capital assets

Tangible capital assets are amortized from the year of acquisition on a straight-line basis over their estimated useful life as follows:

**Depreciation policy**
Category	Estimated useful life
Computer hardware	3 to 5 years
Computer software	3 to 5 years
Leasehold improvements	Lesser of the remaining term of the occupancy instrument or useful life of the improvement
Assets under construction	Once in service, in accordance with asset class

(e) Employee future benefits

Pension benefits

Eligible employees of the Fund participate in the Public Service Pension Plan (the Plan), a multiemployer pension plan administered by the Government of Canada. The Fund's contributions to the Plan are charged to expenses in the year which they are incurred and represent the total Fund obligation to the Plan. The Fund's responsibility with regard to the Plan is limited to the contributions paid. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

Severance benefits

Eligible employees of the Fund were entitled to severance benefits under labour contracts or conditions of employment. These benefits were earned as the services necessary to earn them were rendered. The obligation relating 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.

(f) Sick leave

Employees are permitted to accumulate unused sick leave. However, such leave entitlements may only be used in the event of an illness. As per current government practice, unused sick leave upon employee termination is not payable to the employee. Accordingly, no liability has been accrued in these financial statements. Payments of sick leave benefits are included in current operations as incurred.

(g) 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. However, if the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(h) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses reported in the financial statements. At the time of preparation of these financial statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the allowance for doubtful accounts on receivables from outside parties, the estimated useful lives of tangible capital assets, the amount of certain liabilities, the liability for vacation pay and compensatory leave, and the liability for employee severance benefits. Actual results could significantly 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.

3. Accounts receivable

**Table 7Accounts receivable**
(in thousands of dollars)
	2024	2023
Other government departments and agencies	3,276	6,456
Outside parties	2,667	2,560
Total	5,943	9,016
Less: allowance for doubtful accounts on receivables from outside parties	(negative 874)	(negative 1)
Net accounts receivable	5,069	9,015

4. Other assets

**Table 8Other assets**
(in thousands of dollars)
	2024	2023
Sales tax refundable advances	1,826	1,888
Other advances	216	221
Total other assets	2,042	2,109

5. Tangible capital assets

**Table 9Cost**^{Links to footnote * in table 9}
(in thousands of dollars)
	Balance at beginning of year	Acquisitions	Disposals, write‑offs and transfers	Balance at end of year
Computer hardware	797	154	(negative 58)	893
Computer software	23,879	654	–	24,533
Leasehold improvements	6,140	–	–	6,140
Total	30,816	808	(negative 58)	31,566
Table 9 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 9

**Table 10Accumulated amortization**^{Links to footnote * in table 10}
(in thousands of dollars)
	Balance at beginning of year	Current year amortization	Disposals, write‑offs and transfers	Balance at end of year
Computer hardware	(negative 274)	(negative 183)	58	(negative 399)
Computer software	(negative 20,378)	(negative 1,059)	–	(negative 21,437)
Leasehold improvements	(negative 1,716)	(negative 738)	–	(negative 2,454)
Total	(negative 22,368)	(negative 1,980)	58	(negative 24,290)
Table 10 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 10

**Table 11Net book value**
(in thousands of dollars)
	2024	2023
Computer hardware	494	523
Computer software	3,096	3,501
Leasehold improvements	3,686	4,424
Total tangible capital assets	7,276	8,448

6. Accounts payable and accrued liabilities

**Table 12Accounts payable and accrued liabilities**
(in thousands of dollars)
	2024	2023
Outside parties	10,034	10,157
Other government departments and agencies	4,476	1,982
Total	14,510	12,139
Accrued liabilities	18	4,384
Total accounts payable and accrued liabilities	14,528	16,523

7. Employee severance benefits

The Fund provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid by future authorities.

Commencing in 2012, as part of collective agreement negotiations and changes to conditions of employment, the accumulation of severance benefits under the employee severance pay program ceased. The employees were given the option to be immediately paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefits obligation.

Information about the severance benefits, measured as at March 31, is as follows:

**Table 13Employee severance benefits**
(in thousands of dollars)
	2024	2023
Employee severance benefits obligation, beginning of year	2,274	2,610
Expense for the year	96	(negative 49)
Benefits paid during the year	(negative 89)	(negative 287)
Employee severance benefits obligation, end of year	2,281	2,274

8. Net liabilities

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.

**Table 14Net liabilities**
(in thousands of dollars)
	2024	2023
Accumulated surplus (deficit), beginning of year	(negative 5,975)	(negative 4,623)
Net results	(negative 4,284)	(negative 1,368)
Transfer of salary overpayments between government departments	31	16
Accumulated surplus (deficit), end of year	(negative 10,228)	(negative 5,975)
Accumulated net charge against the Fund's authority, beginning of year	2,094	3,455
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year	1,086	(negative 1,361)
Accumulated net charge against the Fund's authority, end of year	3,180	2,094
Net liabilities, end of year	(negative 7,048)	(negative 3,881)

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 when the goods and services are received. Estimated future payments are as follows:

**Table 15Contractual obligations**
(in thousands of dollars)
Year ending March 31
2025	4,807
2026	3,550
2027	2,057
2028	969
2029 and thereafter	669
Total contractual obligations	12,052

10. Contingent liabilities

In connection with its operations, the Fund is involved in certain legal action. The amount of the litigation is not determinable. Settlement, if any, that may be made with respect to litigation is expected to be accounted for as a charge against income of the applicable years when future events are likely to occur and a reasonable estimate of the loss can be made.

11. 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 these entities in the normal course of business and on normal trade terms.

12. Comparative figures

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

Public Accounts of Canada 2024 Volume III—Bottom of the page Navigation

Date modified:: 2024-12-17

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