2022-2023 Financial Statements

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• 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, 2023, and all information contained in these statements rests with the management of Library and Archives Canada (LAC). These financial statements have been prepared by management using the Government of Canada’s accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information presented in the financial statements is based on management’s best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of 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 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 effectiveness of associated key controls, and to make any necessary adjustments. A risk-based assessment of the system of ICFR for the year ended March 31, 2023, was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans 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	2023	2022
Liabilities
Preservation Storage Facility (note 4)	132,152	142,257
Accounts payable and accrued liabilities (note 5)	19,791	17,751
Vacation pay and compensatory leave	5,191	5,066
Deferred revenue (note 6)	1,720	1,889
Employee future benefits (note 7)	2,019	2,271
Total net liabilities	160,873	169,234
Financial assets
Due from Consolidated Revenue Fund	20,021	17,787
Accounts receivable and advances (note 8)	1,540	1,830
Total net financial assets	21,561	19,617
Departmental net debt	139,312	149,617
Non-financial assets
Tangible capital assets (note 9)	306,466	259,992
Prepaid expenses	327	233
Collections (note 10)	1	1
Total non-financial assets	306,794	260,226
Departmental net financial position	167,482	110,609
Table 1 Notes Table 1 Note * This table indicates LAC's Statement of Financial Position for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the liabilities, assets and departmental net financial position for both 2022 and 2023. Return to table 1 note * referrer

Contractual obligations (note 12)

Contigent liabilities (note 13)

Environmental liabilities and asset retirement obligations (note 14)

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	2023 Planned Results	2023	2022
Expenses
Acquiring and preserving documentary heritage	89,428	83,369	75,911
Providing access to documentary heritage	54,344	38,395	30,154
Internal services	52,320	47,509	38,410
Total expenses	196,092	169,273	144,475
Revenues
Sales of goods and information products	215	403	152
Gain on disposal of non-capital assets	-	3	17
Miscellaneous revenues	2,287	3,508	3,432
Total revenues	2,502	3,914	3,601
Net cost of operations before government funding and transfers	193,590	165,359	140,874
Government funding and transfers
Net cash provided by Government of Canada		197,620	125,270
Change in due from Consolidated Revenue Fund		2,234	5,005
Services provided without charge by other government departments (note 11)		22,305	21,076
Transfer of assets and liabilities from (to) other government departments		73	29
Net revenue of operations after government funding and transfers		(56,873)	(10,506)
Departmental net financial position—beginning of year		110,609	100,103
Departmental net financial position—end of year		167,482	110,609
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, 2023. 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 2022 and 2023 are presented, in thousands of dollars. Return to table 2 note * referrer

Segmented information (note 15)
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	2023	2022
Net revenue of operations after government funding and transfers	(56,873)	(10,506)
Change due to tangible capital assets
Acquisition of tangible capital assets	52,516	70,981
Amortization of tangible capital assets	(6,042)	(4,602)
Proceeds from disposal of tangible capital assets	-	-
Net (loss) or gain on disposal of tangible capital assets including adjustments	-	(347)
Total change due to tangible capital assets	46,474	66,032
Change due to prepaid expenses	94	(123)
Net increase (decrease) in departmental net debt	(10,305)	55,403
Departmental net debt—beginning of year	149,617	94,214
Departmental net debt—end of year	139,312	149,617
Table 3 Notes Table 3 Note * This table indicates LAC's Statement of Change in Departmental Net Debt for the year ended March 31, 2023. 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 2022 and 2023. Return to table 3 note * referrer

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	2023	2022
Net cost of operations before government funding and transfers	165,359	140,874
Non-cash items:
Construction in progress—Preservation Storage Facility (note 4)	28,319	55,988
Amortization of tangible capital assets (note 9)	(6,042)	(4,602)
Gain (loss) on disposal and write-down of tangible capital assets	-	(347)
Services provided without charge by other government departments (note 11)	(22,305)	(21,076)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	(290)	917
Increase (decrease) in prepaid expenses	94	(123)
Decrease (increase) in the Preservation Storage Facility liability	10,105	(55,988)
Decrease (increase) in other liabilities	(1,744)	(5,337)
Transfer of assets to/from other government departments	(73)	(29)
Cash used in operating activities	173,423	110,277
Capital investing activities
Acquisitions of tangible capital assets (note 9)	24,197	14,993
Proceeds from disposal of tangible capital assets	-	-
Cash used in capital investing activities	24,197	14,993
Net cash provided by the Government of Canada	197,620	125,270
Table 4 Notes Table 4 Note * This table indicates LAC's Statement of Cash Flows for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the operating, investment and financing activities for both 2022 and 2023. Return to table 4 note * referrer

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: Library and Archives of Canada (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. Its 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 become part of its collection, as well as sampling of Internet content. Other records of national significance are acquired to document Canadian society. LAC 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 availability of digital records.
2. Providing access to documentary heritage: Library and Archives of Canada (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 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 the Digi-Lab, to complement 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 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 corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support program delivery in the organization, regardless of the internal services delivery model in a department. The 10 service categories are: Acquisition Management Services, Communications Services, Financial Management Services, Human Resources Management and Security 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 2022-2023 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 2022-2023 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 recognized in the period in which the event giving rise to the revenues occurred.
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

1. Transfer payments are recorded as an expense in the year that the transfer is authorized, if all eligibility criteria have been met by the recipient.
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, and employer contributions to the health and dental insurance plans, are recorded as operating expenses at their carrying value.

(f) Employee future benefits

1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multi-employer pension plan administered by the Government. 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) Financial Instruments

A contract establishing a financial instrument creates, at its inception, rights, and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. LAC recognizes a financial instrument when it becomes a party to a financial instrument contract.

Financial instruments consist of accounts receivable and advances, as well as the Preservation Storage Facility liability, accounts payable and accrued liabilities.

All financial assets and liabilities are recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts receivable to amounts that approximate their net recoverable value.

(h) Tangible capital 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 immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable; and intangible assets.

(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) Environmental liabilities and asset retirement obligations

An environmental liability for the remediation of contaminated sites is recognized when all of the following criteria are satisfied: an environmental standard exists, contamination exceeds the environmental standard, the Government is directly responsible or accepts responsibility, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The liability reflects management’s best estimate of the amount required to remediate the sites to the current minimum environmental standard for its use prior to contamination.

An asset retirement obligation is recognized when all of the following criteria are satisfied: there is a legal obligation to incur retirement costs in relation to a tangible capital asset, the past event or transaction giving rise to the retirement liability has occurred, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The costs to retire an asset are normally capitalized and amortized over the asset’s estimated remaining useful life. An asset retirement obligation may arise in connection with a tangible capital asset that is not recognized or no longer in productive use. In this case, the asset retirement cost would be expensed. The measurement of the liability is the Government’s best estimate of the amount required to retire a tangible capital asset.

When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable and expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the Government’s cost of borrowing, associated with the estimated number of years to complete remediation.

The recorded liabilities are adjusted each year, as required, for present-value adjustments, inflation, new obligations, changes in management estimates and actual costs incurred.

(k) 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 in note 15, Segmented information.

(l) 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.

(m) 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 and asset retirement obligations, 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.

(n) Related party transactions

Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

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

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

3. Parliamentary authorities

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	2023	2022
Net cost of operations before government funding and transfers	165,359	140,874
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(22,305)	(21,076)
Amortization of tangible capital assets	(6,042)	(4,602)
Decrease (increase) in employee future benefits	252	383
Decrease (increase) in vacation pay and compensatory leave	(125)	1,091
Bad debt expense	-	(2)
Refund of previous year's expenditures	43	43
Revenue not available for spending during the fiscal year	568	579
Gain (loss) on disposal and write-down of tangible capital assets	-	(347)
Other	(13)	(17)
Total items affecting net cost of operations but not affecting authorities	(27,622)	(23,948)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets	52,516	14,993
Decrease in the Preservation Storage Facility liability	10,105	-
Increase (decrease) in prepaid expenses	94	(123)
Increase/(decrease) in salary advances	2	-
Other	47	7
Total items not affecting net cost of operations but affecting authorities	62,764	14,877
Current year authorities used	200,501	131,803
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, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 5 note * referrer

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

(b) Authorities provided and used	2023	2022
Authorities provided:
Vote 1 – Operating expenditures	132,202	110,791
Vote 5 – Capital expenditures	103,465	40,841
Statutory amounts	11,852	10,740
Less:
Authorities available for future years	(3)	(17)
Lapsed: Operating	(4,267)	(3,845)
Lapsed: Capital	(14,278)	(3,680)
Lapsed: Frozen allotments	(28,470)	(23,027)
Current year authorities used	200,501	131,803
Table 6 Notes Table 6 Note * This table details LAC's current year authorities used for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 6 note * referrer

4. Preservation Storage Facility

This liability relates to the public-private partnership for the construction of the Preservation Storage Facility behind the existing Preservation Centre in Gatineau, Quebec.

Following a competitive process, Plenary Properties Gatineau was awarded the contract to deliver the design and construction of the building, to enhance the Preservation Centre, and to maintain both facilities for a 30-year period. LAC has owned the Preservation Storage Facility since its completion in June 2022.

As per note 9, Tangible capital assets, an amount of $170.6 million was transferred from the category “Construction in progress—Preservation Storage Facility” to “Buildings” following the completion of the construction.

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	2023	2022
Accounts payable – Other government departments and agencies	776	1,095
Accounts payable – External parties	11,960	8,470
Total accounts payable	12,736	9,565
Accrued liabilities	7,055	8,186
Total accounts payable and accrued liabilities	19,791	17,751
Table 7 Notes Table 7 Note * This table indicates LAC's accounts payable and accrued liabilities for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 7 note * referrer

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	2023	2022
Opening balance	1,889	1,677
Amounts received	726	908
Revenues recognized	(895)	(696)
Net closing balance	1,720	1,889
Table 8 Notes Table 8 Note * This table indicates LAC's deffered revenue for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the deferred revenue beginning-of-year balance, variances and end-of-year balance for both 2022 and 2023. Return to table 8 note * referrer

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 2022–2023 expense amounts to $7,730,572 ($7,243,723 in 2021–2022). For Group 1 members, the expense represents approximately 1.02 times (1.01 times in 2021–2022) the employee contributions, and for Group 2 members, approximately 1.00 times (1.00 times in 2021–2022) 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, 2023. 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	2023	2022
Accrued benefit obligation, beginning of year	2,271	2,654
Obligation adjustment	73	(98)
Benefits paid during the year	(325)	(285)
Accrued benefit obligation, end of year	2,019	2,271
Table 9 Notes Table 9 Note * This table indicates LAC's employee future benefits for the year ended March 31, 2023. 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 2022 and 2023. Return to table 9 note * referrer

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	2023	2022
Receivables—Other government departments and agencies	1,282	1,619
Receivables—External parties	255	208
Employee advances	3	3
Total accounts receivable	1,540	1,830
Table 10 Notes Table 10 Note * This table details LAC's accounts receivable and advances for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 10 note * referrer

The following table provides an aging analysis of accounts receivable from external parties and the associated valuation allowances used to reflect their net recoverable value:

Table 11 (in thousands of dollars)^{table 11 note *}

Accounts receivable from external parties	2023	2022
Not past due	200	182
Number of days past due
1 to 30	40	14
31 to 60	-	2
61 to 90	-	-
91 to 365	4	3
Over 365	11	7
Sub-total	255	208
Less: Valuation allowance	-	-
Total	255	208
Table 11 Notes Table 11 Note * This table indicates LAC’s aging accounts receivable from external parties and the associated valuation allowances for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 11 note * referrer

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 12^{table 12 note *}

Asset Class	Amortization Period
Buildings	40–100 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 12 Notes Table 12 Note * This table indicates LAC's asset classes and their amortization periods for the year ended March 31, 2023. Return to table 12 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 13 (in thousands of dollars)^{table 13 note *}

Cost	Opening Balance	Acquisitions	Adjustmentstable 13 note **	Disposals and Write-offs	Closing Balance
Land	8,475	-	-	-	8,475
Buildings	117,621	-	193,098	-	310,719
Machinery and equipment	644	-	-	-	644
Computer hardware	4,708	15	-	-	4,723
Computer software	20,382	21	-	-	20,403
Other equipment	36,157	472	-	-	36,629
Vehicles	604	-	-	-	604
Leasehold improvements	19,211	-	-	-	19,211
Building under construction	41,983	23,282	(22,522)	-	42,743
Software under development	-	407	-	-	407
Subtotal	249,785	24,197	170,576	-	444,558
Non-cash item: Construction in progress—Preservation Storage Facility	142,257	28,319	(170,576)	-	-
Total	392,042	52,516	-	-	444,558
Table 13 Notes Table 13 Note * This table indicates LAC’s tangible capital assets for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the cost, for both 2022 and 2023. Return to table 13 note * referrer Table 13 Note ** Adjustments include assets under construction of $193,097,889 that were transferred to other categories upon completion of the assets. Return to table 13 note ** referrer

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

Accumulated amortization	Opening Balance	Amortization	Adjustments	Disposals and Write-offs	Closing Balance
Buildings	74,201	3,304	-	-	77,505
Machinery and equipment	644	-	-	-	644
Computer hardware	4,309	117	-	-	4,426
Computer software	16,917	361	-	-	17,278
Other equipment	27,747	1,383	-	-	29,130
Vehicles	479	42	-	-	521
Leasehold improvements	7,753	835	-	-	8,588
Total	132,050	6,042	-	-	138,092
Table 14 Notes Table 14 Note * This table indicates LAC’s tangible capital assets for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the accumulated amortization for both 2022 and 2023. Return to table 14 note * referrer

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

Net Book Value	2023	2022
Land	8,475	8,475
Buildings	233,214	43,420
Machinery and equipment	-	-
Computer hardware	297	399
Computer software	3,125	3,465
Other equipment	7,499	8,410
Vehicles	83	125
Leasehold improvements	10,623	11,458
Buildings under construction	42,743	41,983
Software under development	407	-
Sub-total	306,466	117,735
Non-cash item: Construction in progress New Preservation Storage Facility	-	142,257
Total	306,466	259,992
Table 15 Notes Table 15 Note * This table indicates LAC's tangible capital assets for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, showing the net book value for both 2022 and 2023. Return to table 15 note * referrer

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 value attributed to the collections in these financial statements is consistent with Canadian public sector reporting standards, this is not representative of the historical or market value of the collections. Although not capitalized like other assets, such as buildings or equipment, the collections are irreplaceable treasures with inestimable legal, evidentiary, cultural and monetary value for Canadians. The collections include documentary material transferred free of charge from government departments, publications received through legal deposit, purchased materials, and donated materials for which receipts may have been issued for tax purposes.

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

(a) Common services provided without charge by other government departments	2023	2022
Accommodation	15,255	14,218
Employer's contribution to the health and dental insurance plans	7,050	6,858
Total	22,305	21,076
Table 16 Notes Table 16 Note * This table indicates the services provided without charge to LAC for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 16 note * referrer

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 and Departmental Net Financial Position. Similarly, LAC manages records in all formats on behalf of other federal government organizations across the country.

(b) Other transactions with related parties

Table 17 (in thousands of dollars)^{table 17 note *}

(b) Other transactions with related parties	2023	2022
Expenses—Other government departments and agencies	30,686	24,982
Revenues—Other government departments and agencies	2,880	2,739
Table 17 Notes Table 17 Note * This table indicates LAC’s other transactions with related parties for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 17 note * referrer

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

12. Contractual obligations

The nature of LAC’s activities can result in some large multi-year contracts and obligations wherby the institution will be obligated to make future payments for the acquisition of goods or services as well as for the construction and management of special-purpose facilities. The main contractual obligations for which a reasonable estimate can be made are summarized below:

Table 18 (in thousands of dollars)^{table 18 note *}

Contractual obligations	2024	2025	2026	2027	2028	2029 and after	Total
Capital assets	37,025	40,955	28,800	8,463	3,134	117,497	235,874
Operations and maintenance	12,427	8,471	11,527	10,521	10,900	192,161	246,007
Total	49,452	49,426	40,327	18,984	14,034	309,658	481,881
Table 18 Notes Table 18 Note * This table indicates LAC’s contractual obligations for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for 2024 to 2028, and 2029 and after. Return to table 18 note * referrer

13. Contingent Liabilities

Contingent liabilities arise in the normal course of business, and their outcome is unknown. At the date of the financial statements, no event that would give rise to an important contingent liability was known.

14. Environmental liabilities and asset retirement obligations

At the date of the financial statements, LAC had not recognized any environmental liabilities or asset retirement obligations.

15. 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 note 2, Summary of significant accounting policies. 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 19 (in thousands of dollars)table 19 note * Segmented information Acquiring and preserving documentary heritage Providing access to documentary heritage Internal Services 2023 Total 2022 Total Transfer payments - 2,507 - 2,507 2,237 Operating expenses Salaries and employee benefits 35,351 30,526 32,175 98,052 89,707 Professional and special services 13,325 697 5,581 19,603 19,154 Accommodation 9,439 2,990 2,826 15,255 14,218 Payments in lieu of taxes 10,595 - - 10,595 6,090 Amortization of tangible capital assets 5,520 381 141 6,042 4,602 Interest on other liabilities—PPP 5,108 - - 5,108 - Rental costs 285 10 4,055 4,350 3,751 Acquisition of machinery and equipment 415 515 2,214 3,144 770 Utilities, materials and supplies 2,726 155 42 2,923 2,483 Repair and maintenance 548 119 141 808 715 Travel and relocation 37 216 169 422 45 Communications services 4 254 124 382 291 Other 16 25 41 82 65 Loss on disposal and write-down of tangible capital assets - - - - 347 Total operating expenses 83,369 35,888 47,509 166,766 142,238 Total expenses 83,369 38,395 47,509 169,273 144,475 Revenues   Miscellaneous revenues 600 2,826 96 3,522 3,483 Sales of goods and information products - 403 - 403 152 Gain on disposal of non-capital assets - - 3 3 17 Revenues earned on behalf of Government - - (14) (14) (51) Total revenues 600 3,229 85 3,914 3,601 Net cost from continuing operations 82,769 35,166 47,424 165,359 140,874 Table 19 Notes Table 19 Note * This table indicates LAC's segmented information by core responsibilities for the year ended March 31, 2023. Displayed are the figures, in thousands of dollars, for both 2022 and 2023. Return to table 19 note * referrer

Annex

Continue to Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting