2019-2020 Financial Statements

On this page

• Statement of management responsibility including internal control over financial reporting
• Statement of financial position
• Statement of operations and departmental net financial position
• Statement of change in departmental net debt
• Statement of cash flows
• Notes to the financial statements

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, 2020, and all information contained in these statements rests with Library and Archives Canada (LAC) management. 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.

LAC management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information presented 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 LAC’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in LAC’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 LAC; and through conducting an annual risk-based assessment of the effectiveness of the system of internal controls over financial reporting (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.

LAC will be subject to periodic Core Control Audits performed by the Office of the Comptroller General, which will use the results of such audits to adhere to the Treasury Board Policy on Financial Management.

In the interim, LAC has undertaken a risk-based assessment of the system of ICFR for the year that ended on March 31, 2020, in accordance with the Treasury Board Policy on Financial Management, and the results and action plan are summarized in the annex.

The financial statements of LAC have not been audited.

 

Statement of Financial Position (Unaudited)
As at March 31

Table 1 (in thousands of dollars) ^{table 1 note *}

Statement of Financial Position	2020	2019
Liabilities
Construction in progress—New preservation facility (note 4)	42,737	--
Accounts payable and accrued liabilities (note 5)	12,106	15,302
Vacation pay and compensatory leave	4,607	3,586
Deferred revenue (note 6)	1,150	1,313
Employee future benefits (note 7)	2,932	3,246
Total net liabilities	63,532	23,447
Financial assets
Due from Consolidated Revenue Fund	11,881	15,701
Accounts receivable and advances (note 8)	1,737	1,067
Total net financial assets	13,618	16,768
Departmental net debt	49,914	6,679
Non-financial assets
Tangible capital assets (note 9)	144,182	95,743
Prepaid expenses	574	675
Collections (note 10)	1	1
Total non-financial assets	144,757	96,419
Departmental net financial position	94,843	89,740
Table 1 Notes Table 1 Note * This table indicates LAC’s Statement of Financial Position for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the liabilities, assets and departmental net financial position for both 2019 and 2020. Return to table 1 note * referrer

Table 1: Text equivalent

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

Table 2 (in thousands of dollars) ^{table 2 note *}

Statement of Operations and Departmental Net Financial Position	2020 Planned Results	2020	2019
Expenses
Acquiring and preserving documentary heritage	66,465	69,695	65,374
Providing access to documentary heritage	31,108	36,724	32,762
Internal services	38,889	45,120	43,363
Total expenses	136,462	151,539	141,499
Revenues
Sales of goods and information products	400	185	198
Gain on disposal of non-capital assets	20	3	4
Miscellaneous revenues	130	1,112	1,401
Total revenues	550	1,300	1,603
Net cost of operations before government funding and transfers	135,912	150,239	139,896
Government funding and transfers
Net cash provided by Government of Canada		137,740	121,946
Change in due from Consolidated Revenue Fund		(3,820)	3,376
Services provided without charge by other government departments (note 11)		21,411	20,736
Transfer of assets and liabilities from (to) other government departments		11	5
Net revenue of operations after government funding and transfers		5,103	6,167
Departmental net financial position—beginning of year		89,740	83,573
Departmental net financial position—end of year		94,843	89,740
Table 2 Notes Table 2 Note * This table indicates LAC’s Statement of Operations and Departmental Net Financial Position for the year ended March 31, 2020. Displayed are the expenses by core responsibilities, the revenues by type, the net cost of operations before government funding and transfers, and the net cost of operations after government funding and transfers. The departmental net financial position at the beginning and at the end of the year is also displayed. The figures for both 2019 and 2020 are presented, in thousands of dollars. Return to table 2 note * referrer

Table 2: Text equivalent

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

Table 3 (in thousands of dollars) ^{table 3 note *}

Statement of Change in Departmental Net Debt	2020	2019
Net cost of operations after government funding and transfers	5,103	6,167
Change due to tangible capital assets (note 9)
Acquisition of tangible capital assets	(53,063)	(9,341)
Amortization of tangible capital assets	4,624	4,624
Total change due to tangible capital assets	(48,439)	(4,717)
Change due to prepaid expenses	101	(225)
Net increase (decrease) in departmental net debt	43,235	(1,225)
Departmental net debt—beginning of year	6,679	7,904
Departmental net debt—end of year	49,914	6,679
Table 3 Notes Table 3 Note * This table indicates LAC’s Statement of Change in Departmental Net Debt for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the departmental net debt beginning of year balance, the adjustments throughout the year, and the end of year balance for both 2019 and 2020. Return to table 3 note * referrer

Table 3: Text equivalent

The accompanying notes form an integral part of these financial statements.

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

Table 4 (in thousands of dollars) ^{table 4 note *}

Operating activities	2020	2019
Net cost of operations before government funding and transfers	150,239	139,896
Non-cash items:
Construction in progress—New preservation facility (note 4)	42,737	--
Amortization of tangible capital assets (note 9)	(4,624)	(4,624)
Services provided without charge by other government departments (note 11)	(21,411)	(20,736)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	670	(233)
Increase (decrease) in prepaid expenses	(101)	225
Decrease (increase) in Construction in progress—New preservation facility (note 4)	(42,737)	--
Decrease (increase) in other liabilities	2,652	(1,918)
Transfer of assets to/from other government departments	(11)	(5)
Cash used in operating activities	127,414	112,605
Capital investing activities
Acquisitions of tangible capital assets (note 9)	10,326	9,341
Cash used in capital investing activities	10,326	9,341
Net cash provided by the Government of Canada	137,740	121,946
Table 4 Notes Table 4 Note * This table indicates LAC’s Statement of Cash Flow for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the operating, investment, and financing activities for both 2019 and 2020. Return to table 4 note * referrer

Table 4: Text equivalent

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

(a) Description of the authority and objectives

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 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 record may be destroyed without the prior written consent of the Librarian and Archivist of Canada. Government records deemed to be of historical or archival importance shall be transferred to his or her care and control.

LAC is 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. 

(b) Description of core responsibilities

1. Acquiring and preserving documentary heritage: LAC acquires documentary heritage of historical value and preserves it for current and future generations, as mandated in the Library and Archives of Canada Act. The collection is made up of documentary heritage preserved in a variety of media and formats. LAC advises the Government of Canada and its institutions on the management of information and ensures that records of historical value are transferred to its collection. Through legal deposit, all materials submitted by Canadian publishers, and samples of Internet content, become part of the collection. Other records of national significance are acquired to document Canadian society. The institution uses state-of-the-art techniques and infrastructure to restore the collection and provide optimal conditions for long-term preservation. LAC also builds its capacity and expertise to ensure the accessibility of its collection.
2. Providing access to documentary heritage: LAC provides access to its collection, while respecting legal, policy and contractual obligations. It enables Canadians to access and consult its collection and thereby enrich their knowledge of Canada’s documentary heritage. Through its website and social media, LAC improves access to its digital content and the whole collection. The institution provides online and in-person services at its four national service points. It uses innovative strategies such as crowdsourcing (Co-Lab) and the Digi-Lab to increase the digital content of its collection. LAC also promotes Canadian heritage by creating exhibitions that enable the public to discover its collection in cultural sites across Canada. Through the Documentary Heritage Communities Program, LAC supports memory organizations in Canada by increasing their capacity to preserve and make their collections accessible.
3. Internal services: Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services comprise 10 service categories: Acquisition Management, Communications, Financial Management, Human Resources Management and Security, Information Management and Information Technology, Legal Services, Materiel Management, Management and Oversight, and Real Property Management.

2. Summary of significant accounting policies

These financial statements have been prepared using the Government of Canada’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.

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 does 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 Operations and Departmental Net Financial Position and in the Statement of 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 2019-2020 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position or in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2019-2020 Departmental Plan.

(b) Net cash provided by the Government

LAC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by LAC is deposited to the CRF, and all cash disbursements made by LAC 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 departments of the Government.

(c) Amounts due from/to the CRF

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

(d) Revenues

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, these revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity’s gross revenues.

(e) Expenses

Expenses are recorded on the accrual basis:

1. Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses 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 statements. 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 to transfer payment expense and as a receivable.
2. Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
3. Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, and workers’ compensation are recorded as operating expenses at their estimated cost.

(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. LAC’s contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. LAC’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 and advances

Accounts receivable and advances are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.

(h) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in note 9. 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 works of art, museum collection and Crown land to which no acquisition cost is attributable, and intangible assets.

(i) Contingent liabilities

Contingent liabilities are potential liabilities that 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, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. 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) Foreign currency transactions

Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions. Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect at March 31. Gains and losses resulting from foreign currency transactions are included in Other items within Segmented information (note 12).

(k) Collections

LAC’s collections are presented in the Statement of Financial Position at a nominal value of $1,000. Items purchased for the collections are recorded as an expense in the year of acquisition. Items collected from the federal government are not recorded in the Statement of Financial Position.

(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 contingent liabilities, environmental liabilities, 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.

3. Parliamentary authorities

LAC 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, LAC 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.

Table 5 (in thousands of dollars)^{table 5 note *}

(a) Reconciliation of net cost of operations to current year authorities used	2020	2019
Net cost of operations before government funding and transfers	150,239	139,896
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(21,411)	(20,736)
Amortization of tangible capital assets	(4,624)	(4,624)
Decrease (increase) in employee future benefits	314	133
Decrease (increase) in vacation pay and compensatory leave	(1,021)	119
Refund of previous year’s expenditures	252	159
Revenue not available for spending during the fiscal year	79	67
Other	75	(53)
Total items affecting net cost of operations but not affecting authorities	(24,336)	(24,935)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	10,326	9,341
Increase (decrease) in prepaid expenses	(101)	225
Other	226	103
Total items not affecting net cost of operations but affecting authorities	10,451	9,669
Current year authorities used	134,354	124,630
Table 5 Notes Table 5 Note * This table reconciles LAC’s net cost of operations to current year authorities used for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 5 note * referrer

Table 5: Text equivalent

Table 6 (in thousands of dollars)^{table 6 note *}

(b) Authorities provided and used	2020	2019
Authorities provided:
Vote 1 – Operating expenditures	116,865	111,706
Vote 5 – Capital expenditures	44,768	12,827
Statutory amounts	11,897	10,937
Less:
Authorities available for future years	(3)	(4)
Lapsed: Operating	(2,745)	(3,179)
Lapsed: Capital	(2,452)	(2,549)
Lapsed: Frozen allotments	(33,976)	(5,108)
Current year authorities used	134,354	124,630
Table 6 Notes Table 6 Note * This table details LAC’s current year authorities used for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 6 note * referrer

Table 6: Text equivalent

4. Construction in progress - New preservation facility

This liability relates to the Public-Private Partnership (PPP) agreement for a new state-of-the-art preservation facility next to our existing Preservation Centre in Gatineau, Quebec, to meet LAC’s requirements for additional archival storage capacity.

After a competitive process, Plenary Properties Gatineau (PPG) was awarded the contract and is responsible for the design and construction of LAC’s new preservation facility, enhancements to LAC’s existing Preservation Centre, and maintenance of both facilities for a 30-year period. The new facility is expected to be completed in 2022. Ownership of both preservation facilities remains with the federal government. Construction payments to the private partner are based on specific milestones being achieved, subject to independent verification.

In the tangible capital asset note, the Construction in progress—New preservation facility asset represents the estimated value of the project assets (see note 9). 

Information related to the project can be found on LAC’s website.

5. Accounts payable and accrued liabilities

The following table presents details of LAC’s accounts payable and accrued liabilities.

Table 7 (in thousands of dollars)^{table 7 note *}

Accounts payable and accrued liabilities	2020	2019
Accounts payable – Other government departments and agencies	2,352	2,912
Accounts payable – External parties	9,167	11,829
Total accounts payable	11,519	14,741
Accrued liabilities	587	561
Total accounts payable and accrued liabilities	12,106	15,302
Table 7 Notes Table 7 Note * This table indicates LAC’s accounts payable and accrued liabilities for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 7 note * referrer

Table 7: Text equivalent

6. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific research projects and stemming from amounts received for fees prior to services being performed. 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:

Table 8 (in thousands of dollars)^{table 8 note *}

Deferred revenue	2020	2019
Opening balance	1,313	2,288
Amounts received	755	771
Revenues recognized	(918)	(1,746)
Net closing balance	1,150	1,313
Table 8 Notes Table 8 Note * This table indicates LAC’s deferred revenue for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the deferred revenue beginning of year balance, variances, and end of year balance for both 2019 and 2020. Return to table 8 note * referrer

Table 8: Text equivalent

7. Employee future benefits

(a) Pension benefits

LAC’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 two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plan benefits, and they are indexed to inflation.

Both the employees and LAC 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 at December 31, 2012, and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2019–2020 expense amounts to $8,237,993 ($7,605,382 in 2018–2019). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2018–2019) the employee contributions, and for Group 2 members, approximately 1.00 times (1.00 times in 2018–2019) the employee contributions.

LAC’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.

(b) Severance benefits

Severance benefits provided to LAC 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, 2020, all settlements for immediate cash-out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities. 

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

Table 9 (in thousands of dollars)^{table 9 note *}

Severance benefits	2020	2019
Accrued benefit obligation, beginning of year	3,246	3,379
Expense for the year	96	346
Benefits paid during the year	(410)	(479)
Accrued benefit obligation, end of year	2,932	3,246
Table 9 Notes Table 9 Note * This table indicates LAC’s employee future benefits for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the accrued benefit obligations beginning of year balance, variances, and end of year balance for both 2019 and 2020. Return to table 9 note * referrer

Table 9: Text equivalent

8. Accounts receivable and advances

The following table presents details of LAC’s accounts receivable and advances balances:

Table 10 (in thousands of dollars)^{table 10 note *}

Accounts receivable and advances	2020	2019
Receivables—Other government departments and agencies	1,206	748
Receivables—External parties	527	314
Employee advances	4	5
Accounts receivable	1,737	1,067
Table 10 Notes Table 10 Note * This table details LAC’s accounts receivable and advances for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 10 note * referrer

Table 10: Text equivalent

9. 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:

Table 11^{table 11 note *}

Asset Class	Amortization Period
Buildings	40 years
Machinery and equipment	3–15 years
Computer hardware	2–7 years
Computer software	2–10 years
Other equipment	3–40 years
Vehicles	3–5 years
Leasehold improvements	Lesser of the remaining term of lease or useful life of the improvement
Table 11 Notes Table 11 Note * This table indicates LAC’s asset classes and their amortization period for the year ended March 31, 2020. Return to table 11 note * referrer

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

Table 11: Text equivalent

Table 12 (in thousands of dollars)^{table 12 note *}

Cost	Opening Balance	Acquisitions	Adjustments (1)	Disposals and Write-offs	Closing Balance
Land	8,475	-	-	-	8,475
Buildings	111,571	-	4,207	-	115,778
Machinery and equipment	644	-	-	-	644
Computer hardware	4,638	59	-	-	4,697
Computer software	18,868	-	713	-	19,581
Other equipment	35,011	1,146	-	-	36,157
Vehicles	604	-	-	-	604
Leasehold improvements	19,139	-	-	-	19,139
Building in progress of construction	14,994	8,336	(4,207)	-	19,123
Leasehold improvements in progress of construction	-	-	-	-	-
Software under development	-	713	(713)	-	-
Subtotal	213,944	10,326	-	-	224,270
Non-cash item: Construction in progress New preservation facility	-	42,737	-	-	42,737
Total	213,944	53,063	-	-	267,007
Table 12 Notes Table 12 Note * This table indicates LAC’s tangible capital assets for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the cost for both 2019 and 2020. Return to table 12 note * referrer

1. Adjustments include assets under construction of $4,920,551 transferred to other categories upon completion of the assets.

Table 12: Text equivalent

Table 13 (in thousands of dollars)^{table 13 note *}

Accumulated amortization	Opening Balance	Amortization	Adjustments	Disposals and Write-offs	Closing Balance
Buildings	66,612	1,863	-	-	70,475
Machinery and equipment	593	24	-	-	617
Computer hardware	3,956	117	-	-	4,075
Computer software	15,883	362	-	-	16,195
Other equipment	23,601	1,382	-	-	24,983
Vehicles	356	41	-	-	397
Leasehold improvements	5,248	835	-	-	6,083
Total	118,201	4,624	-	-	122,825
Table 13 Notes Table 13 Note * This table indicates LAC’s tangible capital assets for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the accumulated amortization for both 2019 and 2020. Return to table 13 note * referrer

Table 13: Text equivalent

Table 14 (in thousands of dollars)^{table 14 note *}

Net Book Value	2020	2019
Land	8,475	8,475
Buildings	45,303	42,959
Machinery and equipment	27	51
Computer hardware	622	680
Computer software	3,386	3,035
Other equipment	11,174	11,410
Vehicles	207	248
Leasehold improvements	13,056	13,891
Building in progress of construction	19,123	14,994
Leasehold improvements in progress of construction	72	-
Subtotal	101,445	95,743
Non-cash item: Construction in progress New preservation facility	42,737	-
Total	144,182	95,743
Table 14 Notes Table 14 Note * This table indicates LAC’s tangible capital assets for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, showing the net book value for both 2019 and 2020. Return to table 14 note * referrer

Table 14: Text equivalent

1. Adjustments include assets under construction of $5,704,120 transferred to other categories upon completion of the assets.

10. Collections

LAC preserves Canada’s documentary heritage and serves as the continuing memory of the Government of Canada, thereby contributing to the country’s cultural, social and economic advancement as a free and democratic society.

While the nominal valuation attributed to the collections in these financial statements is aligned with Canadian public-sector reporting standards, this is not representative of the historical or market value of the collection. Although not capitalized like other assets, such as buildings or equipment, these irreplaceable treasures have inestimable legal, evidentiary, cultural and monetary value for Canadians. These include documentary material transferred at no charge from government departments, publications received through legal deposit, materials purchased, and donated materials for which receipts for tax purposes may have been issued.

11. Related party transactions

LAC 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 close family member of that individual.

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

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

During the year, LAC received services without charge from certain common service organizations, related to the accommodation for its office space and the employer’s contribution to the health and dental insurance plans. These services, provided without charge, have been recorded in LAC’s Statement of Operations as follows:

Table 15 (in thousands of dollars)^{table 15 note *}

(a) Common services provided without charge by other government departments	2020	2019
Accommodation	13,675	14,310
Employer’s contribution to the health and dental insurance plans	7,736	6,426
Total	21,411	20,736
Table 15 Notes Table 15 Note * This table indicates the services provided without charge to LAC for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 15 note * referrer

Table 15: Text equivalent

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 LAC’s Statement of Operations. Similarly, LAC manages records, in all media, on behalf of 176 federal government organizations across the country.

(b) Other transactions with related parties

Table 16 (in thousands of dollars)^{table 16 note *}

(b) Other transactions with related parties	2020	2019
Expenses—Other government departments and agencies	31,867	29,842
Revenues—Other government departments and agencies	425	445
Table 16 Notes Table 16 Note * This table indicates LAC’s other transactions with related parties for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 16 note * referrer

Table 16: Text equivalent

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 LAC’s core responsibility. The presentation by segment is based on the accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues yielded for the core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Table 17 (in thousands of dollars)table 17 note * Segmented information Acquiring and preserving documentary heritage Providing access to documentary heritage Internal Services 2020 Total 2019 Total Transfer payments - 2,717 - 2,717 2,482 Operating expenses Salaries and employee benefits 41,224 27,857 33,843 102,924 91,574 Accommodation 8,101 3,294 2,280 13,675 14,310 Professional and special services 6,938 1,465 4,318 12,721 11,344 Payments in lieu of taxes 4,441 - - 4,441 5,147 Rental costs 992 51 3,197 4,240 3,657 Amortization of tangible capital assets 4,102 381 141 4,624 4,624 Utilities, materials and supplies 2,384 127 - 2,451 2,698 Acquisition of machinery and equipment 337 85 586 1,008 2,236 Repair and maintenance 690 49 232 971 1,258 Travel and relocation 370 343 249 962 1,192 Communications services 147 294 216 657 847 Other 29 61 58 148 130 Total operating expenses 69,695 34,007 45,120 148,822 139,017 Total expenses 69,695 36,724 45,120 151,539 141,499 Revenues   Miscellaneous revenues 274 838 - 1,112 1,401 Sales of goods and information products - 168 17 185 198 Gain on disposal of non-capital assets - - 3 3 4 Total revenues 274 1,006 20 1,300 1,603 Net cost from continuing operations 69,421 35,718 45,100 150,239 139,896 Table 17 Notes Table 17 Note * This table indicates LAC’s segmented information by core responsibilities for the year ended March 31, 2020. Displayed are the figures, in thousands of dollars, for both 2019 and 2020. Return to table 17 note * referrer Table 17: Text equivalent

13. Comparative information

Certain comparative figures have been reclassified to conform to the current year’s presentation.

Annex

Continue to Internal control over financing reporting – Statement, assessment summary and action plan

​