Financial Statements

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Department’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Department’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act and the Family Orders and Agreements Enforcement Assistance Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Department.

The financial statements of the Department have been audited by the Auditor General of Canada.

John H. Sims
Deputy Minister of Justice and
Deputy Attorney General of Canada

Ottawa, Canada
July 31, 2009

Daniel Schnob
Chief Financial Officer

Auditor's Report

To the Minister of Justice:

I have audited the statement of financial position of the Department of Justice as at March 31, 2009 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Department’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Department as at March 31, 2009 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
July 31, 2009

Statement of Financial Position
As at March 31
(in thousands of dollars)

Assets
  2009 Unaudited
2008
Restated
(Note 3)
Financial assets
Due from the Consolidated Revenue Fund 398,017 732,685
Receivables and advances (Note 7) 19,691 41,265
Total financial assets 417,708 733,950
Non-financial assets
Prepaid expenses 78 103
Tangible capital assets (Note 8) 36,836 32,668
Total non-financial assets 36,914 32,771
Total 454,622 806,721

Liabilities and Equity of Canada
  2009 Unaudited
2008
Restated
(Note 3)
Liabilities
Accounts payable and accrued liabilities (Note 9) 76,495 62,767
Family Law account (Note 10) 6,626 4,578
Transfer payments payable 350,658 719,989
Vacation pay and compensatory leave 16,331 15,148
Employee severance benefits (Note 11) 96,249 73,366
Total liabilities 546,359 875,848
Deficit of Canada (91,737) (69,127)
Total 492,622 806,721

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

John H. Sims
Deputy Minister of Justice and
Deputy Attorney General of Canada

Ottawa, Canada
July 31, 2009

Daniel Schnob
Chief Financial Officer

Statement of Operations
For the year ended March 31
(in thousands of dollars)
  2009 Unaudited
2008
Restated
(Note 3)
Expenses (Note 5)
Services to government 601,886 525,763
Justice policies, laws and programs 404,798 419,747
The Office of the Federal Ombundsman for Victims of Crime 1,594 -
Total expenses 1,008,278 945,510
Revenues (Note 6)
Services to government 234,219 214,185
Justice policies, laws and programs 8,126 8,309
Total revenues 242,345 222,494
Net cost of operations 765,933 723,016

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

Statement of Equity of Canada
For the year ended March 31
(in thousands of dollars)
  2009 Unaudited
2008
Restated
(Note 3)
Deficit of Canada, beginning of year (69,127) (71,218)
Net cost of operations (765,933) (723,016)
Change in due from the Consolidated Revenue Fund (334,668) 87,091
Net cash provided by Government (Note 4) 1,001,226 552,651
Departmental reorganization - transfer of Net asset (Note 14) - 19,250
Services provided without charge by other government departments (Note 15) 76,765 66,115
Deficit of Canada, end of year (91,737) (69,127)

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

Statement of Cash Flow
For the year ended March 31
(in thousands of dollars)
  2009 Unaudited
2008
Restated
(Note 3)
Operating activities
Net cost of operations 765,933 723,016
Non-cash items
Amortization of tangible capital assets (Note 8) (10,605) (10,570)
Loss on disposal and transfer of capital assets (27) (4,976)
Services provided without charge by other government departments (Note 15) (76,765) (66,115)
Variations in Statement of Financial Position
(Decrease) increase in accounts receivable and advances (21,574) 13,401
Decrease in prepaid expenses (25) (33)
Decrease (increase) in liabilities 329,489 (94,352)
Departmental reorganization (Note 14) - (19,250)
Cash used by operating activities 986,426 541,121
Capital investment activities
Acquisitions of tangible capital assets (Note 8) 14,800 11,530
Cash used by capital investment activities 14,800 11,530
Net cash provided by Government 1,001,226 552,651

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

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