Financial Statements

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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.

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.

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

• Contingent liabilities (Note 12)
• Contractual obligations (Note 13)

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

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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