Financial Statements

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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, 2015, and all information contained in these statements rests with the management of the Department of Justice. These financial statements have been prepared by management using the Government'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 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 of Justice’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Department of Justice’s Departmental Performance 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 the Department of Justice 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, 2015 was completed in accordance with the Treasury Board Policy on Internal Control and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Department of Justice’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Department of Justice's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Deputy Minister of the Department of Justice.

The financial statements of the Department of Justice have not been audited.

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

	2015	2014 Restated (note 14)
Liabilities
Accounts payable and accrued liabilities (note 4)	62,251	54,348
Family Law account (note 5)	5,565	1,503
Transfer payments payable	345,864	288,065
Vacation pay and compensatory leave	19,664	19,019
Employee future benefits (note 6)	43,640	35,290
Total liabilities	476,984	398,225
Financial assets
Due from the Consolidated Revenue Fund	376,685	303,963
Accounts receivable and advances (note 7)	32,645	30,322
Total gross financial assets	409,330	334,285
Financial assets held on behalf of Government
Accounts receivable and advances (note 7)	(807)	(1,173)
Total net financial assets	408,523	333,112
Departmental net debt	68,461	65,113
Non-financial assets
Prepaid expenses	58	66
Tangible capital assets (note 8)	36,158	43,604
Total non-financial assets	36,216	43,670
Departmental net financial position	(32,245)	(21,443)

Contingent liabilities (note 9)

Contractual obligations (note 10)

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
(in thousands of dollars)

	2015 Planned Results	2015	2014 Restated (note 14)
Expenses
Legal Services to Government Program	525,703	492,542	487,934
Stewardship of the Canadian Legal Framework	395,059	416,565	415,360
Office of the Federal Ombudsman for Victims of Crime	1,454	1,143	1,315
Internal Services	158,786	173,661	174,197
Total expenses	1,081,002	1,083,911	1,078,806
Revenues
Legal services	339,820	336,854	338,851
Family Law fees	6,764	7,721	8,376
Common services	5,312	3,518	6,014
Other revenues	-	824	853
Revenues earned on behalf of Government	(6,764)	(8,545)	(9,229)
Total revenues	345,132	340,372	344,865
Net cost of operations before government funding and transfers	735,870	743,539	733,941
Government Funding and Transfers
Net cash provided by Government	671,278	589,466	792,657
Change in due from the Consolidated Revenue Fund	(44,611)	72,722	(91,373)
Services provided without charge by other government departments (note 11)	103,517	88,398	91,950
Transfer of the transition payments for implementing salary payments in arrears (note 12)	-	(17,849)	-
Transfer of assets to other government departments	-	-	(1,488)
Transfer of tangible capital assets to other government departments	-	-	(12)
Net cost or (revenue) of operations after government funding and transfers	5,686	10,802	(57,793)
Departmental net financial position - Beginning of year	(14,893)	(21,443)	(79,236)
Departmental net financial position - End of year	(20,579)	(32,245)	(21,443)

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
(in thousands of dollars)

	2015 Planned Results	2015	2014
Net cost of operations after government funding and transfers	5,686	10,802	(57,793)
Change due to tangible capital assets
Acquisitions of tangible capital assets	3,000	7,450	8,814
Amortization of tangible capital assets	(7,686)	(13,550)	(14,008)
Net loss on write off of tangible capital assets	-	(1,346)	-
Transfer to other government departments	-	-	(1,488)
Transfer of tangible capital assets to other government departments	-	-	( 12)
Total change due to tangible capital assets	(4,686)	(7,446)	(6,694)
Change due to prepaid expenses	-	(8)	(22)
Net increase (decrease) in departmental net debt	1,000	3,348	(64,509)
Departmental net debt - Beginning of year	60,586	65,113	129,622
Departmental net debt - End of year	61,586	68,461	65,113

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

Statement of Cash Flows (Unaudited)
For the year ended March 31
(in thousands of dollars)

	2015	2014 Restated (note 14)
Operating activities
Net cost of operations before government funding and transfers	743,539	733,941
Non-cash items:
Amortization of tangible capital assets (note 8)	(13,550)	(14,008)
Loss on write off of capital assets	(1,346)	-
Services provided without charge by other government departments (note 11)	(88,398)	(91,950)
Transition payments for implementing salary payments in arrears (note 12)	17,849	-
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances	2,689	3,059
Decrease in prepaid expenses	(8)	(22)
(Increase) Decrease in liabilities	(78,759)	152,823
Cash used in operating activities	582,016	783,843
Capital investment activities
Acquisitions of tangible capital assets (note 8)	7,450	8,814
Cash used in capital investment activities	7,450	8,814
Net cash provided by Government of Canada	589,466	792,657

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

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