In 2020–21, Statistics Canada made significant investments in modernizing its operations and developing the resourcefulness of its employees, enabling the agency to rapidly adapt to sudden changes in priorities during the COVID-19 pandemic. The demand for relevant and trustworthy data was never more urgent and essential to fulfill, both in helping Canadians respond to the crisis and in charting a path towards an inclusive and sustainable recovery.

Providing user-centric services

Statistics Canada provides timely, high-quality data to Canadians. During the COVID-19 pandemic, which dominated its agenda in 2020–21, the agency developed the following new methods and technology-based solutions:

• In April 2020, Statistics Canada pivoted to provide Canadians with crucial data about the impacts of the pandemic on employment, health, safety, business closures, consumption trends, immigration levels, interest rates and housing prices and provided evidence of the unequal impacts of the pandemic on diverse populations.
• As the pandemic disrupted Canadians’ way of life, municipalities requested more granular data to support local decision making. Building on the results of a pilot project with the City of Vancouver, Statistics Canada has established a partnership with the Federation of Canadian Municipalities to produce more data broken down to the community level.

Developing leading-edge methods of data collection and integration

In 2020–21, Statistics Canada continued to invest in leading-edge methods of data collection, which included integrating more alternative data sources that went beyond the agency’s traditional survey-first approach. The methods below have reduced the time and effort required of Canadians to fill out surveys and have created opportunities to incorporate richer datasets into the agency’s products:

• Canadians had access to timely and relevant survey findings provided using innovative data collection methods such as crowdsourcing, which enabled Statistics Canada to publish its first-ever study of how Canadians experienced discrimination during the pandemic.
• Statistics Canada’s investments in data science and machine learning resulted in the development of artificial intelligence tools to help the Public Health Agency of Canada’s response to COVID-19. These tools enabled the development of data models aimed at helping to reduce transmission of the virus that causes COVID-19 and to evaluate the impact of public health measures to determine the extent to which these measures should be eased to allow businesses and schools to reopen and social gatherings to resume.

Building statistical capacity and leadership

Statistics Canada is a leader in fostering data literacy and numeracy. In the middle of a pandemic, the agency continued to lead a whole-of-government approach by using data as a strategic asset to better serve Canadians, which included improving the data analysis skills of Government of Canada employees.

• The Data Science Network for the Federal Public Service was launched in 2020 with the goal of establishing a strategy to enable data science expertise to be shared across all orders of government and beyond.
• As part of the Government of Canada’s efforts to address gender gaps and systemic racism, Statistics Canada’s Centre for Gender, Diversity and Inclusion Statistics gave more than 20 presentations on a diverse range of topics aimed at bringing fairness and inclusion to decisions that affect all the people in Canada.

Sharing and collaborating

Collaboration enabled Canadians to share data and use them to make evidence-based decisions about effective pandemic response.

• In partnership with Health Canada, the Public Health Agency of Canada and other organizations, Statistics Canada developed a dashboard to track the supply and demand of personal protective equipment, forecast ventilator capacity, and automate the national COVID-19 vaccine supply tracker.
• The agency’s interviewers, who are specially trained to conduct high-volume survey-based interviews, were mobilized to provide surge capacity in contact tracing for the provinces and territories. By March 31, 2021, they had made the equivalent of 1.2 million 15-minute calls for contact tracing, conducting everything from daily health check-ins with Canadians to in-depth case investigations, while still juggling their ongoing survey collection duties.
• Together with the Canadian Chamber of Commerce, the country’s largest business group, Statistics Canada launched the Canadian Survey on Business Conditions within weeks of the pandemic’s first wave. The goal of this survey was to track the impact of the nationwide economic shutdown on the nation’s firms. The results of this survey were vital in providing the Government of Canada with the information it needed to design and implement emergency income-support programs that met the urgent needs of the moment.

Designing a modern and flexible workplace

When the COVID-19 pandemic hit Canada, Statistics Canada’s employees quickly adapted to deliver timely and accurate data and insights in a rapidly changing environment.

• Statistics Canada led the Government of Canada in adopting cloud-based computing solutions during the pandemic to address the urgent need for advanced technology solutions in a digital and data-driven world.

For more information on Statistics Canada’s plans, priorities and results achieved, see the “Results: what we achieved” section of this report.

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.

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

b) Authorities provided and used

4. Accounts payable and accrued liabilities

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

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:

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:

7. Accounts receivable and advances

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

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:

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.

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:

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:

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

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:

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:

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.

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.