Financial statements, March 31, 2021

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, 2021, and all information contained in these statements rests with the management of Statistics Canada (the agency). 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 agency's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the agency'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 agency 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 the 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, 2021 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex, which can be found at the end of the notes to these financial statements.

The effectiveness and adequacy of the agency's system of internal control is reviewed by the work of internal finance staff, who conduct periodic assessments of different areas of the agency's operations, and by the Departmental Audit Committee (DAC), who provide advice to the Chief Statistician on the adequacy and effectiveness of the agency's risk management, control and governance frameworks and processes.

The financial statements of Statistics Canada have not been audited.

Statement of Financial Position (Unaudited)
As at March 31
(in thousands of dollars)

	2021	2020 Restated (note 13)
Liabilities
Accounts payable and accrued liabilities (note 4)	89,631	75,031
Vacation pay and compensatory leave	53,069	34,674
Deferred revenue (note 5)	149	614
Employee future benefits (note 6)	18,070	20,520
Total net liabilities	160,919	130,839
Financial assets
Due from Consolidated Revenue Fund	71,876	55,874
Accounts receivable and advances (note 7)	6,571	12,276
Total gross financial assets	78,447	68,150
Financial assets held on behalf of Government
Accounts receivable and advances (note 7)	-1,305	-1,194
Total Financial assets held on behalf of Government	-1,305	-1,194
Total net financial assets	77,142	66,956
Departmental net debt	83,777	63,883
Non-financial assets
Prepaid expenses	7,934	5,851
Consumable supplies	1,931	1,561
Tangible capital assets (note 8)	160,365	163,237
Total non-financial assets	170,230	170,649
Departmental net financial position	86,453	106,766
Contractual obligations and contractual rights (note 9) Contingent liabilities and contingent assets (note 10) The accompanying notes form an integral part of these financial statements.

Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021 Planned Results	2021	2020 Restated (note 13)
Expenses
Statistical Information	764,452	763,439	663,599
Internal services	84,117	88,974	93,839
Total expenses	848,569	852,413	757,438
Revenues
Special statistical services	138,000	140,726	143,220
Other revenues	100	28	72
Revenues earned on behalf of Government	-18,100	-20,507	-21,356
Total revenues	120,000	120,247	121,936
Net cost of operations before government funding and transfers	728,569	732,166	635,502
Government funding and transfers
Net cash provided by Government of Canada		603,079	553,055
Change in due from Consolidated Revenue Fund		16,003	-7,233
Services provided without charge by other federal government departments (note 11a)		92,622	83,756
Transfer of the transition payments for implementing salary payments in arrears		-2	0
Transfer of assets to other federal government departments		151	2
Net cost of operations after government funding and transfers		20,313	5,922
Departmental net financial position - Beginning of year		106,766	112,688
Departmental net financial position - End of year		86,453	106,766
Segmented information (note 12) The accompanying notes form an integral part of these financial statements

Statement of Change in Departmental Net Debt (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021	2020 Restated (note 13)
Net cost of operations after government funding and transfers	20,313	5,922
Change due to tangible capital assets
Acquisition of tangible capital assets (note 8)	29,018	28,447
Amortization of tangible capital assets (note 8)	-31,457	-30,146
Net loss on disposal of tangible capital assets including adjustments	-433	-70
Transfer of tangible capital assets to other federal government departments	0	21
Total change due to tangible capital assets	-2,872	-1,748
Change due to consumable supplies	370	463
Change due to prepaid expenses	2,083	1,677
Net increase in departmental net debt	19,894	6,314
Departmental net debt - Beginning of year	63,883	57,569
Departmental net debt - End of year	83,777	63,883
The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (Unaudited)
For the Year Ended March 31
(in thousands of dollars)

	2021	2020 Restated (note 13)
Operating activities
Net cost of operations before government funding and transfers	732,166	635,502
Non-cash items:
Amortization of tangible capital assets (note 8)	-31,457	-30,146
Loss on disposal of tangible capital assets	-433	-70
Services provided without charge by other federal government departments (note 11a)	-92,622	-83,756
Transfer of emergency salary advances to other federal government departments	-152	20
Transition payments for implementing salary payments in arrears	2	0
Variations in Statement of Financial Position:
Decrease (increase) in accounts receivable and advances	-5,816	4,919
Increase in prepaid expenses	2,083	1,676
Increase in consumable supplies	370	463
Increase (decrease) in accounts payable and accrued liabilities	-14,600	4,326
Increase in vacation pay and compensatory leave	-18,395	-7,097
Decrease in deferred revenue	465	5
Decrease (increase) in employee future benefits	2,450	-1,240
Cash used in operating activities	574,061	524,602
Capital investing activities
Acquisitions of tangible capital assets, excluding capital leases (note 8)	29,018	28,447
Cash used in capital investing activities	29,018	28,447
Financing activities
Payments of lease obligation for tangible capital assets	0	6
Cash used in financing activities	0	6
Net cash provided by Government of Canada	603,079	553,055
The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)
For the Year Ended March 31

1. Authority and objectives

Statistics Canada (the agency) was established in 1918, pursuant to the Statistics Act. The agency received full departmental status by order-in-council in 1965.

The agency is a division of the public service named in Schedule I.1 of the Financial Administration Act. The minister responsible for Statistics Canada is the Minister of Innovation, Science and Economic Development, who represents the agency in Parliament and in Cabinet.

The agency's mandate derives primarily from the Statistics Act. The act requires the agency — under the direction of the minister — to collect, compile, analyze, and publish statistical information on the economic, social, and general conditions of the country and its citizens. Statistics Canada has a mandate to coordinate and manage the country's statistical system.

The agency's mandate has two primary objectives:

• Provide statistical information and analysis of the economic and social structure and functioning of Canadian society as a basis for the development, operation and evaluation of public policies and programs. This information is used for public and private decision-making, and for the general benefit of all Canadians.
• Promote the quality, coherence, and international comparability of Canada's statistics through collaboration with other federal departments and agencies, with the provinces and territories, and in accordance with sound scientific standards and practices.

The agency reports on the two core responsibilities described below.

Statistical information - The agency has a responsibility to produce objective high-quality statistical information for the whole of Canada. The statistical information produced relates to the commercial, industrial, financial, social, economic, environmental and general activities and conditions of the people of Canada.

Internal services - Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization.

2. Summary of significant accounting policies

These financial statements have been prepared using the agency's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

The significant accounting policies are as follows:

a) Parliamentary authorities

The agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the agency do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Financial Position and in the Statement of Operations and Departmental Net Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-oriented Statement of Operations included in the 2020-21 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2020-21 Departmental Plan.

b) Net cash provided by Government

The agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the agency is deposited into the CRF, and all cash disbursements made by the agency are paid from the CRF. The net cash provided by the Government is the difference between all cash receipts and all cash disbursements, including transactions between federal government departments.

c) Amounts due from or to the CRF

Amounts due from or to the CRF are the result of timing differences at year-end between the time 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 agency is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

• Revenues received for special statistical services are recorded as deferred revenue upon receipt. These amounts are recognized as revenue in the period in which the services are rendered and related expenses are incurred.
• Other revenues are recognized in the period the event giving rise to the revenues occurred.
• Revenues that are non-respendable are not available to discharge the agency's liabilities. While the Chief Statistician is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

e) Expenses

• Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
• Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
• Services provided without charge by other federal government departments for accommodation, employer contributions to the health and dental insurance plans, and workers' compensation are recorded as operating expenses at their carrying value.

f) Employee future benefits

1. Pension benefits — Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government. The agency's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The agency'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. Severance benefits — The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

g) Accounts receivable

Accounts receivable are initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

h) Non-financial assets

• All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.
• Consumable supplies include items held for future program delivery and are not intended for resale. These supplies are recorded at the acquisition cost. If there is no longer a service potential, the supplies are valued at the lower of cost or net realizable value.

i) Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j) Contingent assets

Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future even is likely to occur or fail to occur, the contingent asset is disclosed in the notes to the financial statements.

k) Transactions involving foreign currencies

Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Gains and losses resulting from foreign currency transactions are reported on the Statement of Operations and Departmental Net Financial Position according to the activities to which they relate.

l) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the Government's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the liability for employee future benefits and the useful life of tangible capital assets. 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.

m) Related party transactions

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

The agency receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the agency 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:

a) Reconciliation of net cost of operations to current year authorities used

Reconciliation of net cost of operations to current year authorities used

	2021	2020
	(in thousands of dollars)
Net cost of operations before government funding and transfers	732,166	635,502
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	-31,457	-30,146
Loss on disposal of tangible capital assets	-433	-70
Services provided without charge by other federal government departments	-92,622	-83,756
Increase in vacation pay and compensatory leave	-18,394	-7,097
Decrease (increase) in employee future benefits	2,450	-1,240
Refund of prior years' expenditures	1,091	526
Increase in respendable revenues	0	1,878
Consumption of prepaid expenses	-12,020	-8,831
Bad debt expense	-13	0
Increase in accrued salary receivable	195	451
Total items affecting net cost of operations but not affecting authorities	-151,203	-128,285
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets, excluding capital leases	29,018	28,447
Decrease in lease obligations for tangible capital assets	0	6
Decrease in respendable accounts receivable	-3,754	0
Acquisition of prepaid expenses	14,103	10,507
Acquisition of consumable supplies	370	463
Increase in salary receivable	513	133
Increase (decrease) in salary advances	7	-9
Transition payments for implementing salary payments in arrears	2	0
Payments for pay equity settlement	97	185
Total items not affecting net cost of operations but affecting authorities	40,356	39,732
Current year authorities used	621,319	546,949

b) Authorities provided and used

Authorities provided and used

	2021	2020
	(in thousands of dollars)
Authorities provided:
Vote 1 - Operating expenditures	588,445	489,492
Statutory amounts	83,531	73,190
Total authorities provided	671,976	562,682
Less:
Lapsed: Operating expenditures	-50,657	-15,733
Current year authorities used	621,319	546,949

4. Accounts payable and accrued liabilities

The following table presents details of the agency's accounts payable and accrued liabilities:

Accounts payable and accrued liabilities

	2021	2020
	(in thousands of dollars)
Accounts payable - Other federal government departments and agencies	11,666	6,624
Accounts payable - External parties	41,672	27,669
Accrued salaries and wages	36,293	40,738
Total accounts payables and accrued liabilities	89,631	75,031

5. Deferred revenue

The agency has the authority to expend revenue received during the fiscal year. Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties, which are restricted for specific statistical services. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed. Details of the transactions related to this account are as follows:

Deferred revenue

	2021	2020
	(in thousands of dollars)
Opening balance	614	619
Amount received	140,261	143,215
Revenues recognized	-140,726	-143,220
Net closing balance	149	614

6. Employee future benefits

a) Pension benefits

The agency's employees participate in the Public Service Pension Plan ("the Plan"), which is sponsored and administered by the Government of Canada. 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.

Both the employees and the agency contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012, and Group 2 relates to members who joined the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2020-2021 expense amounts to $56,996 thousand ($50,686 thousand in 2019-2020). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2019-2020) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2019-2020) the employee contributions.

The agency's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

b) Severance benefits

Severance benefits provided to the agency's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2021, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Severance benefits

	2021	2020
	(in thousands of dollars)
Accrued benefit obligation - Beginning of year	20,520	19,280
Expense or adjustment for the year	-380	2,959
Benefits paid during the year	-2,070	-1,721
Accrued benefit obligation - End of year	18,070	20,520

7. Accounts receivable and advances

The following table presents details of the agency's accounts receivable and advances balances:

Accounts receivable and advances

	2021	2020 Restated (note 13)
	(in thousands of dollars)
Receivables - Other federal government departments and agencies	2,896	4,495
Receivables - External parties	3,501	7,598
Employees advances	174	185
Subtotal	6,571	12,278
Allowance for doubtful accounts on receivables from external parties	0	-2
Gross accounts receivable and advances	6,571	12,276
Accounts receivable held on behalf of Government	-1,305	-1,194
Net accounts receivable and advances	5,266	11,082

8. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Amortization period of tangible capital assets

Asset class	Amortization period
Computer hardware	5 years
Computer software	5 years
Other equipment	5 years
Motor vehicles	7 years
Leasehold improvements	25 years
Assets under construction	Once available for use
Software under development	Once available for use
Assets under capital leases	Term of lease

Assets under construction and software assets under development are recorded in the applicable asset class in the year that they become available for use and are not amortized until they are available for use.

Tangible capital assets

Capital Asset Class	Cost					Accumulated Amortization					Net Book Value
	Opening Balance	Acquisitions	Disposals and Write-Offs	AdjustmentsFootnote 1	Closing Balance	Opening Balance	Amortization	Disposals and Write-Offs	AdjustmentsFootnote 1	Closing Balance	2021	2020
	(in thousands of dollars)
Computer hardware	2,710	294	-375	0	2,629	2,481	75	-375	0	2,181	448	229
Computer software	337,782	168	-10,994	18,421	345,377	249,483	29,737	-10,754	0	268,466	76,911	88,299
Other equipment	4,138	145	-117	0	4,166	2,794	452	-117	0	3,129	1,037	1,344
Motor vehicles	2,817	32	0	0	2,849	2,431	223	0	0	2,654	195	386
Leasehold improvements	24,206	497	0	284	24,987	9,391	970	0	0	10,361	14,626	14,815
Assets under construction	514	170	0	-477	207	0	0	0	0	0	207	514
Software under development	57,650	27,712	0	-18,421	66,941	0	0	0	0	0	66,941	57,650
Assets under capital leases	16	0	-16	0	0	16	0	-16	0	0	0	0
Total	429,833	29,018	-11,502	-193	447,156	266,596	31,457	-11,262	0	286,791	160,365	163,237
Footnote 1 Included in adjustments are the following: software assets under development of $18,421 thousand that were transferred to computer software upon completion of the assets; assets under construction of $284 thousand that were transferred to leasehold improvements upon completion of construction and $193 thousand that was expensed due to projects being cancelled. Return to the first footnote 1 referrer

9. Contractual obligations and contractual rights

a) Contractual obligations

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

Contractual obligations

	2022	2023	2024	2025	2026 and subsequent	Total
	(in thousands of dollars)
Acquisition of goods and services	69,324	3,647	3,651	3,656	0	80,278
Total	69,324	3,647	3,651	3,656	0	80,278

b) Contractual rights

The activities of the agency sometimes involve the negotiation of contracts or agreements with outside parties that result in the agency having rights to both assets and revenues in the future. They involve sales of goods and services. The agency does not have significant contractual rights to disclose as at March 31, 2021.

10. Contingent liabilities and contingent assets

a) Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown.

Claims and litigations

The agency records an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. In 2020-2021, the agency did not have any contingent liabilities.

b) Contingent assets

The agency discloses contingent assets that are likely to be realized. In 2020-2021, the agency did not have any contingent assets.

11. Related party transactions

The agency is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The agency enters into transactions with these entities in the normal course of business and on normal trade terms.

a) Common services provided without charge by other federal government departments

During the year, the agency received services without charge from certain common service organizations related to accommodation, the employer's contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded at the carrying value in the agency's Statement of Operations and Departmental Net Financial Position as follows:

Common services provided without charge by other federal government departments

	2021	2020
	(in thousands of dollars)
Accommodation	43,549	37,017
Employer's contribution to the health and dental insurance plans	49,017	46,667
Worker's compensation	56	72
Total	92,622	83,756

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and audit services provided by the Office of the Auditor General are not included in the agency's Statement of Operations and Departmental Net Financial Position.

b) Other transactions with other federal government departments and agencies

Other transactions with other federal government departments and agencies

	2021	2020
	(in thousands of dollars)
Accounts receivable	2,896	4,495
Accounts payable	11,666	6,624
Expenses	19,041	15,513
Revenues	105,272	103,971

Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

12. Segmented information

Presentation by segment is based on the agency's core responsibilities. 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 main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Segmented information

	Statistical Information	Internal services	2021 Total	2020 Total
	(in thousands of dollars)
Transfer payments
Grant to the Organization for Economic Co-operation and Development	0	0	0	64
Total transfer payments	0	0	0	64
Operating expenses
Salaries and employee benefits	618,988	66,903	685,891	609,515
Accommodation	36,580	6,969	43,549	37,018
Professional and special services	29,030	9,015	38,045	33,172
Transportation and postage	9,573	1,018	10,591	16,486
Amortization	30,658	799	31,457	30,146
Repairs and maintenance	658	154	812	749
Materials and supplies	9,136	1,683	10,819	13,271
Rentals	20,835	2,305	23,140	14,829
Communication and printing	7,609	96	7,705	2,126
Loss on disposal of tangible capital assets	240	0	240	23
Bad debts	13	0	13	1
Other	119	32	151	38
Total operating expenses	763,439	88,974	852,413	757,374
Total expenses	763,439	88,974	852,413	757,438
Revenues
Special statistical services	140,726	0	140,726	143,220
Other revenues	28	0	28	72
Revenues earned on behalf of Government	-20,507	0	-20,507	-21,356
Total revenues	120,247	0	120,247	121,936
Net cost from continuing operations	643,192	88,974	732,166	635,502

13. Adjustment to prior year's results

In 2020-2021, the agency decided to review its financial reporting methods related to assets. The review noted that accounts receivable due to salary overpayments should be classified as "Financial assets held on behalf of the Government." The change has been applied retroactively and comparative information for 2019-2020 has been restated.

The following table presents the effect of the prior year restated results:

Adjustment to prior year's results

	2020 As previously stated	Effect of the adjustment	2020 Restated
	(in thousands of dollars)
Statement of financial position
Financial assets held on behalf of Government	0	-1,194	-1,194
Total net financial assets	68,150	-1,194	66,956
Departmental net debt	62,689	1,194	63,883
Departmental net financial position	107,960	-1,194	106,766
Statement of operations and departmental net financial position
Net cash provided by Government of Canada	553,096	-41	553,055
Net cost of operations after government funding and transfers	5,881	41	5,922
Net financial position – Beginning of year	113,841	-1,153	112,688
Departmental net financial position – End of year	107,960	-1,194	106,766
Statement of change in departmental net debt
Net cost of operations after government funding and transfers	5,881	41	5,922
Departmental Net debt – Beginning of year	56,416	1,153	57,569
Net increase in net debt	6,273	41	6,314
Departmental net debt – End of year	62,689	1,194	63,883
Statement of cash flows
Increase in accounts receivable and advances	4,960	-41	4,919
Cash used in operating activities	524,643	-41	524,602
Net cash provided by Government of Canada	553,096	-41	553,055

Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting of Statistics Canada for Fiscal Year 2020-2021 (Unaudited)

1. Introduction

This document is attached to Statistics Canada's Statement of Management Responsibility Including Internal Control over Financial Reporting for the 2020–2021 fiscal year. This annex provides summary information on the measures taken by Statistics Canada to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.

Detailed information on the agency's authority, mandate and core responsibilities can be found in the 2021-2022 Departmental Plan and the 2020–2021 Departmental Results Report.

2. Departmental system of internal control over financial reporting

2.1 Internal control management

Statistics Canada has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. A departmental internal control management framework, approved by the Chief Statistician and the Chief Financial Officer (CFO), is in place and includes:

• organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers for control management in their areas of responsibility;
• values and ethics considerations;
• ongoing communication and training on statutory requirements, and policies and procedures for sound financial management and control; and
• regular updates to, and monitoring at least on a semi-annual basis, of internal control management as well as the provision of related assessment results and action plans to the Chief Statistician, senior departmental management and the Departmental Audit Committee (DAC).

The DAC provides advice to the Chief Statistician on the adequacy and effectiveness of the agency's risk management, control and governance frameworks and processes.

2.2 Service arrangements relevant to financial statements

Statistics Canada relies on other organizations for the processing of certain transactions that are recorded in its financial statements, as follows:

2.2.1 Common arrangements

• Public Services and Procurement Canada (PSPC) administers the payment of salaries, the procurement of certain goods and services, and provides accommodation services;
• Shared Services Canada (SSC) provides information technology (IT) infrastructure services;
• The Department of Justice Canada provides legal services; and
• The Treasury Board of Canada Secretariat (TBS) provides information on public service insurance and centrally administers payment of the employer's share of contribution toward statutory employee benefit plans.

2.2.2 Specific arrangements

• PSPC provides Statistics Canada with the Common Departmental Financial System platform to capture and report financial and materiel management transactions.

Readers of this annex may refer to the annexes of the above-noted departments for a greater understanding of the systems of internal control over financial reporting (ICFR) related to these specific services.

3. Statistics Canada assessment results during fiscal year 2020-2021

Statistics Canada adopted an ongoing, rotational, risk-based monitoring approach to support testing of internal control over financial reporting. For 2020-2021, Statistics Canada updated its Internal Control over Financial Management Risk-based Monitoring Strategy, which replaced its previous version from 2017. According to the new strategy, the ongoing monitoring cycle has been extended to a four-year period and the plan is adjusted through an annual risk assessment process.

The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year's rotational plan.

Progress during the 2020-2021 fiscal year

Previous fiscal year's rotational ongoing monitoring plan for current fiscal year	Status
Financial Close and Reporting; Payroll and Benefits	Completed as planned; no remedial actions required.
Entity Level Controls	Completed as planned; remedial actions started.
Revenue	Moved forward from 2021-2022; no remedial actions required.
IT General Controls related to Census pay systems and Census Payroll	Not completed as planned. Design effectiveness was completed in 2019-20 however unable to complete operating effectiveness in 2020-2021 due to delay in cyclical process. To be completed in next cycle.

In addition to the ongoing monitoring plan for ICFR, in 2020-2021 Statistics Canada conducted design effectiveness and operating effectiveness testing on the Costing and CFO Attestation on the broader Internal Control over Financial Management (ICFM) business processes as well as ongoing monitoring of the Budgeting and Forecasting ICFM business processes.

New or significantly amended key controls are summarized in section 3.1. The areas of the departmental system of internal controls which have been reviewed this fiscal year are summarized in section 3.2.

3.1 New or significantly amended key controls

In the current year, there were no new or significantly amended key controls in existing processes which required a reassessment. Design effectiveness and operating effectiveness testing was conducted on the key controls for ICFM business processes: Costing and CFO Attestation. Significant adjustments were not required for the new key controls.

3.2 Ongoing monitoring program

As part of its rotational ongoing monitoring plan, the agency completed its reassessment of Entity Level Controls and controls within specific business processes. Senior management has received reports on the results of testing and has developed action plans where necessary. For the most part, the key controls that were tested performed as intended.

4. Action plan for the next fiscal year (2021-2022) and subsequent fiscal years

The table below shows the agency's rotational ongoing monitoring plan over the next three years. An annual risk assessment is conducted to validate the high-risk controls and to adjust the on-going monitoring plan as required. Action plans from previous years will be followed-up on to ensure that remedial actions have been taken.

Internal Control over Financial Reporting

Internal Control over Financial Reporting	Fiscal Year 2021–2022	Fiscal Year 2022–2023	Fiscal Year 2023–2024
Entity level controls	No	No	No
IT general controls under agency management	Yes	Yes	Yes
Capital assets	No	No	Yes
Financial close and reporting	Yes	Yes	No
Interviewers' payroll	No	Yes	No
Operating expenditures	Yes	No	No
Revenues	No	No	Yes
Payroll and benefits	No	Yes	No

Internal Control over Financial Management

Internal Control over Financial Management	Stage of monitoring
	Fiscal Year 2021–2022	Fiscal Year 2022–2023	Fiscal Year 2023–2024
Budgeting	Ongoing Monitoring	Ongoing Monitoring	Ongoing Monitoring
Costing	Ongoing Monitoring	Ongoing Monitoring	Ongoing Monitoring
Forecasting	Ongoing Monitoring	Ongoing Monitoring	Ongoing Monitoring
Payroll	Ongoing Monitoring	Ongoing Monitoring	Ongoing Monitoring
CFO Attestation of Cabinet and TB Submissions	Operating Effectiveness	Ongoing Monitoring	Ongoing Monitoring
Investment Planning	Design Effectiveness	Operating Effectiveness	Ongoing Monitoring