Future-oriented statement of operations 2023-2024

Future-Oriented Statement of Operations (Unaudited)
For the Year Ending March 31
(in thousands of dollars)
  Estimated Results 2022–23 Planned Results 2023–24
Expenses
Core Responsibilities
Acquiring and preserving documentary heritage 88,713 89,428
Providing access to documentary heritage 37,821 54,344
Internal support services 48,546 52,320
Total expenses 175,080 196,092
Revenues
Sales of goods and information products 200 215
Miscellaneous revenues 1,975 2,287
Total revenues 2,175 2,502
Net cost of operations 172,905 193,590
Table 1 (table summary)

This table indicates Library and Archives Canada’s Future-Oriented Statement of Operations for the years ending March 31, 2023, and March 31, 2024. Displayed are the expenses by program, revenues by type and net cost of operations. Numbers are displayed in thousands of dollars, and totals for 2022–23 and 2023–24 are included.

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.


Leslie Weir
Librarian and Archivist of Canada
Gatineau, Quebec
January 9, 2023


Nancy Taillon
Assistant Deputy Minister
Corporate Services and
Chief Financial Officer
Gatineau, Quebec
December 15, 2022

1. Mandate and Objectives

Library and Archives Canada (LAC) is a government institution that was established on May 21, 2004, as a result of the amalgamation of the former National Library of Canada and the National Archives of Canada. LAC’s role was confirmed in the 2004 Library and Archives of Canada Act, which assigns discretionary power to the Librarian and Archivist of Canada in attaining LAC’s objectives. Pursuant to the Act, no government or ministerial institution may destroy records under its control prior to receiving consent from the Librarian and Archivist of Canada. Government records deemed to be of historical or archival importance shall be transferred to her care and control.

LAC is considered to be a Schedule I.1 organization within the Financial Administration Act and reports to Parliament through the Minister of Canadian Heritage. LAC’s mandate is as follows:

  • to preserve the documentary heritage of Canada for the benefit of current and future generations;
  • to serve as a source of enduring knowledge accessible to all, contributing to the cultural, social and economic advancement of Canada as a free and democratic society;
  • to facilitate in Canada co-operation among communities involved in the acquisition, preservation and diffusion of knowledge; and
  • to serve as the continuing memory of the Government of Canada and its institutions.

2. Methodology and Significant Assumptions

The Future-Oriented Statement of Operations has been prepared in accordance with government priorities and the plans of LAC as described in its Departmental Plan.

The information in the estimated results for fiscal year 2022–23 is based on actual results as of October 31, 2022, and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the 2023–24 fiscal year.

The main assumptions underlying the forecasts are as follows:

  1. The main activities for LAC will remain substantially the same as for the previous year, with the exception of initiatives that are temporarily funded;
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for the remainder of 2022–23 and for 2023–24, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing the Future-Oriented Statement of Operations, LAC has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical financial statements include:

  1. The timing and amount of acquisitions and disposals of tangible capital assets may affect gains/losses and amortization expenses;
  2. Implementation of new collective agreements;
  3. Economic conditions may affect both the amount of revenue earned and the recovery of accounts receivable;
  4. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Departmental Plan is presented, LAC will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

4. Summary of Significant Accounting Policies

The Future-Oriented Statement of Operations has been prepared using the government’s accounting policies in effect for fiscal year 2022-23, 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.

Significant accounting policies are as follows:

(a) Parliamentary authorities

LAC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to LAC do not parallel financial reporting according to generally accepted accounting principles since authorities are based primarily on cash flow requirements. Consequently, items recognized in the statement of operations are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a reconciliation between the two methods of reporting.

(b) Expenses

Expenses are recorded on an accrual basis. Government operating expenses are recorded when goods are received or services are rendered, including services provided without charges for accommodation and employer contributions to health and dental insurance plans, which are recorded as expenses at their estimated cost. Vacation pay and compensatory leave as well as severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment.

Transfer payments are recorded as expenses when the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement or, in the case of transactions that do not form part of an existing program, when the government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statement. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction of transfer payment expenses and as a receivable.

Expenses also include provisions to reflect changes in the value of assets, including provisions for bad debt on accounts receivable and contingent liabilities and environmental liabilities to the extent that the future event is likely to occur and a reasonable estimate can be made.

Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

(c) Revenues

Revenues are recorded on an accrual basis:

  1. Sales of goods and information products are revenues from regulatory fees and are recognized in the accounts based on the services provided in the year.
  2. Funds received from external parties for specified purposes are recorded upon receipt as deferred revenues. These revenues are recognized in the period in which the related expenses are incurred.
  3. Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
  4. Revenues that are non-respendable are not available to discharge LAC’s liabilities. While the Deputy Head is expected to maintain accounting control, he or she 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.

(d) Collections

Items purchased for the collections are recorded as an expense in the year of acquisition.

5. Parliamentary Appropriations

LAC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to LAC do not parallel financial reporting according to generally accepted accounting principles since authorities are based primarily on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, LAC has different net costs of operations for the year depending on whether they are calculated on a government funding basis or on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to forecast authorities used
(in thousands of dollars)
Costs Estimated Results 2022–23 Planned Results 2023–24
Net cost of operations 172,905 193,590
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments (22,556) (24,911)
Amortization of tangible capital assets (4,958) (5,438)
Decrease (increase) in vacation pay and compensatory leave (100) (150)
Decrease (increase) in employee future benefits 100 100
Refunds of previous years’ expenditures 106 106
Total items affecting net cost of operations but not affecting authorities (27,408) (30,293)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 76,621 40,538
Total items not affecting net cost of operations but affecting authorities 76,621 40,538
Requested authorities forecasted to be used 222,118 203,835
Table 2 (table summary)

This table reconciles Library and Archives Canada’s forecasted net cost of operations to current year forecasted appropriations used for the years ending March 31, 2023, and March 31, 2024. Totals for 2022–23 and 2023–24 are displayed in thousands of dollars.

Notes to the Future-Oriented Statement of Operations (Unaudited) For the Year Ending March 31
(b) Authorities provided/requested (in thousands of dollars) Estimated Results 2022–23 Planned Results 2023–24
Authorities requested
Vote 1—Operating expenditures 130,709 147,786
Vote 5—Capital expenditures 76,621 40,538
Statutory amounts 14,788 15,511
Requested authorities forecasted to be used 222,118 203,835
Table 3 (table summary)

This table provides details of the current year forecasted authorities used by Library and Archives Canada’s for the years ending March 31, 2023, and March 31, 2024. Totals for 2022–23 and 2023–24 are displayed in thousands of dollars.