2020-2021 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, 2021, 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.

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, 2021, 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 on March 31

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

Statement of Financial Position	2021	2020
Liabilities
Construction in progress—New preservation facility (note 4)	86,269	42,737
Accounts payable and accrued liabilities (note 5)	11,152	12,106
Vacation pay and compensatory leave	6,157	4,607
Deferred revenue (note 6)	1,677	1,150
Employee future benefits (note 7)	2,654	2,932
Total net liabilities	107,909	63,532
Financial assets
Due from Consolidated Revenue Fund	12,782	11,881
Accounts receivable and advances (note 8)	913	1,737
Total net financial assets	13,695	13,618
Departmental net debt	94,214	49,914
Non-financial assets
Tangible capital assets (note 9)	193,960	144,182
Prepaid expenses	356	574
Collections (note 10)	1	1
Total non-financial assets	194,317	144,757
Departmental net financial position	100,103	94,843
Table 1 Notes Table 1 Note * This table indicates LAC's Statement of Financial Position for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, showing the liabilities, assets and departmental net financial position for both 2020 and 2021. Return to table 1 note * referrer

Table 1: Text equivalent

Contigent liabilities (note 12)
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	2021 Planned Results	2021	2020
Expenses
Acquiring and preserving documentary heritage	72,708	68,789	69,695
Providing access to documentary heritage	30,973	33,944	36,724
Internal services	38,108	46,267	45,120
Total expenses	141,789	149,000	151,539
Revenues
Sales of goods and information products	250	75	185
Gain on disposal of non-capital assets	20	2	3
Miscellaneous revenues	375	2,956	1,112
Total revenues	645	3,033	1,300
Net cost of operations before government funding and transfers	141,144	145,967	150,239
Government funding and transfers
Net cash provided by Government of Canada		129,318	137,740
Change in due from Consolidated Revenue Fund		901	(3,820)
Services provided without charge by other government departments (note 11)		21,035	21,411
Transfer of assets and liabilities from (to) other government departments		(27)	11
Net revenue of operations after government funding and transfers		(5,260)	(5,103)
Departmental net financial position—beginning of year		94,843	89,740
Departmental net financial position—end of year		100,103	94,843
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, 2021. 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 2020 and 2021 are presented, in thousands of dollars. Return to table 2 note * referrer

Table 2: Text equivalent

Segmented information (note 13)
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	2021	2020
Net cost of operations after government funding and transfers	(5,260)	(5,103)
Change due to tangible capital assets (note 9)
Acquisition of tangible capital assets	54,403	53,063
Amortization of tangible capital assets	(4,623)	(4,624)
Proceeds from disposal of tangible capital assets	(2)	-
Total change due to tangible capital assets	49,778	48,439
Change due to prepaid expenses	(218)	(101)
Net increase (decrease) in departmental net debt	44,300	43,235
Departmental net debt—beginning of year	49,914	6,679
Departmental net debt—end of year	94,214	49,914
Table 3 Notes Table 3 Note * This table indicates LAC's Statement of Change in Departmental Net Debt for the year ended March 31, 2021. 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 2020 and 2021. 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	2021	2020
Net cost of operations before government funding and transfers	145,967	150,239
Non-cash items:
Construction in progress—New preservation facility (note 4)	43,532	42,737
Amortization of tangible capital assets (note 9)	(4,623)	(4,624)
Services provided without charge by other government departments (note 11)	(21,035)	(21,411)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	(824)	670
Increase (decrease) in prepaid expenses	(218)	(101)
Decrease (increase) in Construction in progress—New preservation facility (note 4)	(43,532)	(42,737)
Decrease (increase) in other liabilities	(845)	2,652
Transfer of assets to/from other government departments	27	(11)
Cash used in operating activities	118,449	127,414
Capital investing activities
Acquisitions of tangible capital assets (note 9)	10,871	10,326
Proceeds from disposal of tangible capital assets	(2)	--
Cash used in capital investing activities	10,869	10,326
Net cash provided by the Government of Canada	129,318	137,740
Table 4 Notes Table 4 Note * This table indicates LAC's Statement of Cash Flows for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, showing the operating, investment and financing activities for both 2020 and 2021. 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

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 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. Using cutting-edge technologies, LAC enables Canadians to access and consult its collection and enrich their knowledge of Canada's documentary heritage. LAC makes digital content available through its website and on social media to improve access to its collection. As well, LAC provides online services and in-person services at its four service points. LAC uses innovative strategies such as crowdsourcing (Co-Lab and DigiLab) to enhance the digital content of its collection. LAC also promotes access to Canadian heritage by creating exhibitions that enable the public to discover its collection at cultural sites throughout Canada. Through the Documentary Heritage Communities Program, LAC supports memory organizations 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 the corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct services categories that support program delivery in the organization, regardless of the internal services delivery model in a department or organization. The 10 services categories are: Acquisition Management Services, Communications Services, Financial Management Services, Human Resources Management Services, Information Management Services, Information Technology Services, Legal Services, Materiel Management Services, Management and Oversight Services, and Real Property Management Services.

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 2020-2021 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 2020-2021 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 asred 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 13).

(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	2021	2020
Net cost of operations before government funding and transfers	145,967	150,239
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(21,035)	(21,411)
Amortization of tangible capital assets	(4,623)	(4,624)
Decrease (increase) in employee future benefits	278	314
Decrease (increase) in vacation pay and compensatory leave	(1,550)	(1,021)
Refund of previous year's expenditures	85	252
Revenue not available for spending during the fiscal year	493	79
Other	(37)	75
Total items affecting net cost of operations but not affecting authorities	(26,389)	(26,336)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	10,871	10,326
Proceeds from disposal of tangible capital assets	(2)	--
Increase (decrease) in prepaid expenses	(218)	(101)
Other	150	226
Total items not affecting net cost of operations but affecting authorities	10,801	10,451
Current year authorities used	130,379	134,354
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, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. Return to table 5 note * referrer

Table 5: Text equivalent

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

(b) Authorities provided and used	2021	2020
Authorities provided:
Vote 1 – Operating expenditures	116,845	116,865
Vote 5 – Capital expenditures	22,181	44,768
Statutory amounts	12,478	11,897
Less:
Authorities available for future years	(2)	(3)
Lapsed: Operating	(1,764)	(2,745)
Lapsed: Capital	(2,613)	(2,452)
Lapsed: Frozen allotments	(16,746)	(33,976)
Current year authorities used	130,379	134,354
Table 6 Notes Table 6 Note * This table details LAC's current year authorities used for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. 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 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 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, "Construction in progress—New preservation facility" 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	2021	2020
Accounts payable – Other government departments and agencies	2,033	2,352
Accounts payable – External parties	8,226	9,167
Total accounts payable	10,259	11,519
Accrued liabilities	893	587
Total accounts payable and accrued liabilities	11,152	12,106
Table 7 Notes Table 7 Note * This table indicates LAC's accounts payable and accrued liabilities for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. 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	2021	2020
Opening balance	1,150	1,313
Amounts received	1,118	755
Revenues recognized	(591)	(918)
Net closing balance	1,677	1,150
Table 8 Notes Table 8 Note * This table indicates LAC'sred revenue for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, showing thered revenue beginning of year balance, variances and end of year balance for both 2020 and 2021. 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 2020–2021 expense amounts to $8,511,588 ($8,237,993 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.

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, 2021, 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 on March 31, is as follows:

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

Severance benefits	2021	2020
Accrued benefit obligation, beginning of year	2,932	3,246
Expense for the year	115	96
Benefits paid during the year	(393)	(410)
Accrued benefit obligation, end of year	2,654	2,932
Table 9 Notes Table 9 Note * This table indicates LAC's employee future benefits for the year ended March 31, 2021. 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 2020 and 2021. 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	2021	2020
Receivables—Other government departments and agencies	554	1,206
Receivables—External parties	356	527
Employee advances	3	4
Accounts receivable	913	1,737
Table 10 Notes Table 10 Note * This table details LAC's accounts receivable and advances for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. 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 periods for the year ended March 31, 2021. 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	115,778	-	1,200	-	116,978
Machinery and equipment	644	-	-	-	644
Computer hardware	4,697	11	-	-	4,708
Computer software	19,581	-	741	-	20,322
Other equipment	36,157	-	-	-	36,157
Vehicles	604	-	-	-	604
Leasehold improvements	19,139	-	72	-	19,211
Building under construction	19,123	10,119	(1,200)	(2)	28,040
Leasehold improvements under construction	72	-	(72)	-	-
Software under development	-	741	(741)	-	-
Subtotal	224,270	10,871	-	(2)	235,139
Non-cash item: Construction in progress New preservation facility	42,737	43,532	-	-	86,269
Total	267,007	54,403	-	(2)	321,408
Table 12 Notes Table 12 Note * This table indicates LAC's tangible capital assets for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, showing the cost, accumulated amortization and net book value for both 2020 and 2021. Return to table 12 note * referrer

1. Adjustments include assets under construction of $2,013,430 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	Adjustments1	Disposals and Write-offs	Closing Balance
Buildings	70,475	1,863	-	-	72,338
Machinery and equipment	617	24	-	-	641
Computer hardware	4,075	117	-	-	4,192
Computer software	16,195	361	-	-	16,556
Other equipment	24,983	1,382	-	-	26,365
Vehicles	397	41	-	-	438
Leasehold improvements	6,083	835	-	-	6,918
Total	122,825	4,623	-	-	127,448
Table 13 Notes Table 13 Note * This table indicates LAC's asset classes and their amortization periods for the year ended March 31, 2021. Return to table 13 note * referrer

Table 13: Text equivalent

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

Net Book Value	2021	2020
Land	8,475	8,475
Buildings	44,640	45,303
Machinery and equipment	3	27
Computer hardware	516	622
Computer software	3,766	3,386
Other equipment	9,792	11,174
Vehicles	166	207
Leasehold improvements	12,293	13,056
Building in progress of construction	28,040	19,123
Leasehold improvements in progress of construction	-	72
Subtotal	107,691	101,445
Non-cash item: Construction in progress New preservation facility	86,269	42,737
Total	193,960	144,182
Table 14 Notes Table 14 Note * This table indicates LAC's tangible capital assets for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, showing the cost, accumulated amortization and net book value for both 2020 and 2021. Return to table 14 note * referrer

Table 14: Text equivalent

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.

(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	2021	2020
Accommodation	13,681	13,675
Employer's contribution to the health and dental insurance plans	7,354	7,736
Total	21,035	21,411
Table 15 Notes Table 15 Note * This table indicates the services provided without charge to LAC for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. 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	2021	2020
Expenses—Other government departments and agencies	25,757	31,867
Revenues—Other government departments and agencies	2,368	425
Table 16 Notes Table 16 Note * This table indicates LAC's other transactions with related parties for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. 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. Contingent Liabilities

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

Plenary Properties Gatineau submitted a formal notice to LAC on the possibility of additional costs or delay generated by the Covid-19 pandemic on the construction of the new preservation facility in Gatineau. The existence of a liability is probable since the agreement between LAC and Plenary Properties Gatineau provides for compensation in time and money for this type of event. However, the amount of the liability cannot be reasonably estimated since negotiations are underway as to the costs payable.

13. 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 2021 Total 2020 Total Transfer payments - 2,599 - 2,599 2,717 Operating expenses Salaries and employee benefits 40,944 27,065 35,715 103,724 102,924 Accommodation 8,101 3,291 2,289 13,681 13,675 Professional and special services 7,736 242 3,747 11,725 12,721 Payments in lieu of taxes 1,130 26 3,478 4,634 4,240 Rental costs 4,101 381 141 4,623 4,624 Amortization of tangible capital assets 4,058 - - 4,058 4,441 Utilities, materials and supplies 1,977 34 32 2,043 2,451 Acquisition of machinery and equipment 103 46 526 675 1,008 Repair and maintenance 505 21 112 638 971 Travel and relocation 117 192 104 413 657 Communications services 16 45 119 180 148 Other 1 2 4 7 962 Total operating expenses 68,789 31,345 46,267 146,401 148,822 Total expenses 68,789 33,944 46,267 149,000 151,539 Revenues   Miscellaneous revenues 370 2,482 137 2,989 1,112 Sales of goods and information products - 75 - 75 185 Gain on disposal of non-capital assets - - 2 2 3 Revenues earned on behalf of Government - - (33) (33) - Total revenues 370 2,557 106 3,033 1,300 Net cost from continuing operations 68,419 31,387 46,161 145,967 150,239 Table 17 Notes Table 17 Note * This table indicates LAC's segmented information by core responsibilities for the year ended March 31, 2021. Displayed are the figures, in thousands of dollars, for both 2020 and 2021. Return to table 17 note * referrer Table 17: Text equivalent

14. 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