Consolidated Future-oriented Financial Statements and Notes 2013-2014

Year ended March 31

Statement of Management Responsibility

Departmental management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements are prepared. These statements have been prepared in accordance with Treasury Board Accounting Standard 1.2 and are based on the best information available as at January 18, 2013. Assumptions adopted are consistent with amounts reported in Part 2 of the Main Estimates and reflect the plans described in the Report on Plans and Priorities (RPP).

Estimated results for 2012-13 and planned results for 2013-14 are based on current year forecasted information and planned spending, submitted as part of the 2013-14 Annual Reference Level Updates (ARLU) and subsequently approved Treasury Board submissions.

The actual results achieved for the fiscal years covered in the accompanying Future-Oriented Financial Statements will vary from the information presented. Actual results will be reported in the Departmental unaudited financial statements for both 2012-13 and 2013-14 respectively.

Originals approved March 18, 2013 by:

Simon Kennedy
Deputy Minister of International Trade
Ottawa, Canada

Morris Rosenberg
Deputy Minister of Foreign Affairs
Ottawa, Canada

Nadir Patel
Chief Financial Officer & Assistant Deputy Minister, Corporate Planning, Finance and Human Resources
Ottawa, Canada

Consolidated Future Oriented Statement of Operations and Departmental Net Financial Position (Unaudited)

Table 1: Consolidated Future Oriented Statement of Operations and Departmental Net Financial Position
For the Year Ended March 31 (in thousands of dollars)Estimated Results 2013Planned Results 2014
Expenses
Diplomacy and Advocacy1,058,722940,150
Governance, Strategic Direction and Common Service Delivery665,674639,377
Passport Canada392,781340,134
Government of Canada Benefits234,727210,107
Internal Services210,518179,333
International Commerce167,874166,898
International Policy Advice and Integration98,66277,773
Consular Services and Emergency Management57,19254,665
Total Expenses2,886,1502,608,437
Revenues
Sales of Goods and Services509,606466,691
Gain on Disposal of Capital Assets20,00020,000
Revenues Earned on Behalf of Government(158,500)(146,900)
Total Revenues371,106339,791
Net Cost of Operations Before Government Funding2,515,0442,268,646
Government Funding
Net Cash Provided by Government2,639,0582,288,553
Change in Due from the Consolidated Revenue Fund(41,792)(41,102)
Services Provided Without Charge by Other Government Departments (Note 10)79,70672,794
Net Cost of Operations After Government Funding(161,928)(51,599)
Departmental Net Financial Position - Beginning of Year1,065,8951,227,823
Departmental Net Financial Position - End of Year1,227,8231,279,422

Segmented information (Note 11)

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

Table 2: Consolidated Future Oriented Statement of Financial Position
As at March 31 (in thousands of dollars)Estimated Results 2013Planned Results 2014
Liabilities
Accounts Payable and Accrued Liabilities (Note 6)242,968202,849
Vacation Pay and Compensatory Leave47,34641,231
Deferred Revenue249224
Employee Future Benefits (Note 7)149,958140,485
Total Liabilities440,521384,789
Financial Assets
Due from Consolidated Revenue Fund198,806157,704
Accounts Receivable and Advances (Note 8)89,69692,913
Inventory Held for Resale11,40011,000
Total Financial Assets299,902261,617
Departmental Net Debt140,619123,172
Non-Financial Assets
Prepaid Expenses18,79219,374
Consumable Inventory5,1001,900
Tangible Capital Assets (Note 9)1,344,5501,381,320
Non-Financial Assets1,368,4421,402,594
Departmental Net Financial Position1,227,8231,279,422

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

Table 3: Consolidated Future Oriented Statement of Change in Departmental Net Debt
For the Year Ended March 31 (in thousands of dollars)Estimated Results 2013Planned Results 2014
Net Cost of Operations After Government Funding(161,928)(51,599)
Change Due to Tangible Capital Assets
Acquisitions of Tangible Capital Assets (Note 9)236,715165,510
Amortization of Tangible Capital Assets (Note 9)(95,949)(111,036)
Proceeds from Disposal of Tangible Capital Assets(49,726)(37,704)
Gain on Disposal of Tangible Capital Assets20,00020,000
Total Change Due to Tangible Capital Assets111,04036,770
Change Due to Prepaid Expenses4,609582
Change Due to Consumable Inventory2,060(3,200)
Net Decrease in Departmental Net Debt(44,219)(17,447)
Departmental Net Debt - Beginning of Year184,838140,619
Departmental Net Debt - End of Year140,619123,172

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

Table 4: Consolidated Future Oriented Statement of Cash Flow
For the Year Ended March 31 (in thousands of dollars)Estimated Results (2013)Planned Results (2014)
Operating Activities
Net Cost of Operations Before Government Funding2,515,0442,268,646
Non-Cash Items
Amortization of Tangible Capital Assets (Note 9)(95,949)(111,036)
Services Provided Without Charge by Other Government Departments (Note 10)(79,706)(72,794)
Gain on Disposal of Tangible Capital Assets20,00020,000
Variations in Statement of Financial Position
Increase (Decrease) in Accounts Receivable and Advances(13,028)3,217
Increase (Decrease) in Inventory Held for Resale6,049(400)
Increase in Prepaid Expenses4,609582
Increase (Decrease) in Consumable Inventory2,060(3,200)
Decrease in Accounts Payable and Accrued Liabilities87,47040,119
Decrease (Increase) in Vacation Pay and Compensatory Leave(7,058)6,115
Decrease (Increase) in Deferred Revenues(119)25
Decrease in Accrued Employee Future Benefits12,6979,473
Cash Used in Operating Activities2,452,0692,160,747
Capital Investing Activities
Acquisitions of Tangible Capital Assets (Note 9)236,715165,510
Proceeds from Disposal of Tangible Capital Assets(49,726)(37,704)
Cash Used in Capital Investing Activities186,989127,806
Net Cash Provided by Government of Canada2,639,0582,288,553

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

1. Authority and Objectives

The Department of Foreign Affairs and International Trade (hereinafter called "the Department") operates under the legislation set out in the Department of Foreign Affairs and International Trade Act, RSC 1985, c. E-22.

The 2013-2014 Report on Plans and Priorities (RPP) is based on the Department's Program Alignment Architecture (PAA), as approved by Treasury Board (TB). The PAA consists of three strategic outcomes supported by seven program, as well as Internal Services, which support all programs and strategic outcomes. In short, the strategic outcomes indicate the long-term, enduring benefits for Canadians generated by the Department, as follows:

  • Strategic Outcome 1:Canada's International Agenda: The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.
    • Program 1.1: International Policy Advice and Integration - The Department draws upon its expertise at missions and Headquarters to establish integrated and coherent foreign policy and international trade priorities, and to provide information, intelligence and advice to ministers, senior officials and key partners to support informed decisions that advance Canadian values and interests internationally.
    • Program 1.2: Diplomacy and Advocacy - DFAIT uses diplomacy, advocacy and program delivery, informed by consultations with domestic stakeholders to engage and influence international players in order to advance Canadian interests and values internationally.
  • Strategic Outcome 2:International Services for Canadians: Canadians are satisfied with commercial, consular and passport services.
    • Program 2.1: International Commerce - Through this program, DFAIT delivers commercial services and advice to Canadian business and supports its pursuit of international business opportunities.
    • Program 2.2: Consular Services and Emergency Management - Through this program, DFAIT manages and delivers consular services and advice to Canadians and coordinates the Government of Canada response to emergencies abroad affecting Canadians.
    • Program 2.3: Passport Canada - Through this program, DFAIT manages and delivers passport services through the Passport Canada Revolving Fund. The program enables the issuance of secure travel documents to Canadians, which facilitates their travel and contributes to international and domestic security.
  • Strategic Outcome 3:Canada’s International Platform: The Department maintains a mission network of infrastructure and services to enable the Government of Canada to achieve its international priorities.
    • Program 3.1: Governance, Strategic Direction and Common Services Delivery - Through this program, DFAIT provides governance, strategic direction and leadership, manages change, delivers services and provides infrastructure to the mission platform.
    • Program 3.2: Government of Canada Benefits - This program is the vehicle through which the department and central agencies manage statutory payments to Government of Canada employees abroad (Canada-based staff and locally engaged staff).

The internal services program provides the essential support functions that enable DFAIT to carry out its mandate, including governance and management support; resource management services; and asset management services.

2. Methodology and significant assumptions

The future-oriented financial statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities (RPP).

The main assumptions are as follows:

  1. The Department's activities, will remain substantially the same as the previous year.
  2. The Estimated Results for 2013 are derived from the actuals as at December 31, 2012 plus forcasted results for the last quarter.
  3. Expenses and revenues are based on the RPP. The general historical pattern is expected to continue.
  4. Allowances for uncollectability are based on historical experience. The general historical pattern is expected to continue.
  5. Gains and losses from foreign exchange revaluation, are unpredictable. As such, these gains and losses have been excluded.
  6. Estimated year end information for 2012-13 is used as the opening position for the 2013-14 planned results.

These assumptions are adopted as at January 18, 2013.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2012-13 and for 2013-14, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these consolidated future-oriented financial statements, the Department has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include, but are not limited to:

  1. The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
  2. Implementation of new collective agreements.
  3. Economic conditions may affect both the amount of revenue earned and the collectability of receivables.
  4. Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.
  5. Emergency response to possible natural disasters, hostile actions or civil unrest.

Once the RPP is presented, the Department will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Departmental Performance Report (DPR).

4. Summary of Significant Accounting Policies

The consolidated future-oriented financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

(a) Parliamentary authorities

The Department is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items presented in the consolidated Future-oriented Statement of Operations and the consolidated Future-oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. A reconciliation between the basis of reporting is provided in note 5.

(b) Consolidation

These consolidated Future oriented financial statements include the accounts of the Passport Canada Revolving Fund for which the deputy head (DH) is accountable. All inter-organizational balances and transactions have been eliminated.

(c) Net Cash Provided by Government

The Department operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the department is deposited to the CRF and all cash disbursements made by the department are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.

(d) Amounts due from or to the CRF

Amounts due from or 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 the Department is entitled to draw from the CRF without further parliamentary expenditure authorities to discharge its liabilities.

(e) Revenues

Revenues are recorded on an accrual basis:

  1. Revenues from regulatory fees 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 revenue. These revenues are recognized in the period in which the related expenses are incurred.
  3. Funds that have been received are recorded as deferred revenue, provided the department has an obligation to other parties for the provision of goods, services or the use of assets in the future.
  4. Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues takes place.
  5. Revenues that are non-respendable are not available to discharge the Department's liabilities. While the Deputy Head is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, nonrespendable 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.

(f) Expenses

Expenses are recorded on an 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 the employees under their respective terms of employment.
  3. Services provided without charge by other government departments for accommodation, the employer contributions to the health and dental insurance plans, legal services and worker's compensation are recorded as operating expenses at their estimated cost.

(g) Employee future benefits

  1. Pension benefits:Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Department’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The Department’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. Eligible locally engaged staff (LES), who are employees hired at Missions abroad, participate in a combination of plans developed and administered based on local laws and practice, or in a worldwide pension scheme, which is administered by the Department. As the Government of Canada is the sponsor of LES pension plans, the funds for the contributions have been provided to the Department (Vote 15).
  2. Severance benefits: Employees (both Canada based staff (CBS) and locally-engaged staff (LES)) who are entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. The obligation relating to the benefits earned by CBS employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole. The LES obligation is established on the basis of operational requirements of the specific Mission, local laws or practice, and is calculated based on the number of eligible employees multiplied by the estimated value of the severance payment based on historical experience.

(h) Cash in transit

Cash for the Department consists of the funds in transit from missions and funds received and not yet deposited, partially offset by credits in imprest accounts. This cash is for the facilitation of operations. All foreign currency accounts are valued at the rate of exchange forecast to be in effect on March 31.

(i) Accounts receivables

Accounts receivables are stated at the lower of cost and net recoverable value. An allowance for doubtful accounts is recorded for accounts receivable where recovery is considered uncertain.

(j) Contingent liabilities

Contingent liabilities are potential liabilities which 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 or fail 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 consolidated future-oriented financial statements.

(k) Prepaid expenses

Prepaid expenses for the Department consist primarily of rent payments. Prepaid expenses are accounted for as non-financial assets until the related services are rendered, goods are consumed, or terms of the contractual agreement are fulfilled.

(l) Inventories

Inventories consists of parts, material and supplies held for future program delivery and not intended for resale, as well as inventory for sale. Inventories of material and supplies are valued at the lower of cost (using the average cost) or net realizable value.

(m) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial per unit cost of $10,000 or more are recorded at their acquisition cost. The Department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life as follows:

Table 5: Tangible capital assets
Asset categoryAmortization period
Buildings20 to 25 years
Works and infrastructure30 years
Machinery and equipment5 to 25 years
Informatics hardware3 to 15 years
Informatics software3 to 10 years
Vehicles5 to 10 years
Leasehold improvementsTerm of the lease or 25 years

Assets under construction 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.

5. Parliamentary Authorities

The Department receives most of its funding through annual parliamentary authorities. Items recognized in the Consolidated Future-oriented Statements of Operations and Departmental Net Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the Department 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:

a) Authorities requested

Table 6: Parliamentary Authorities - Authorities requested
Authorities requested (in thousands of dollars)Estimated Results 2013Planned Results 2014
Vote 1 - Operating expenditures1,370,4381,314,322
Vote 5 - Capital expenditures341,230165,510
Vote 10 - Grants & Contributions822,927669,546
Vote 15 - LES Pensions and Benefits72,66865,380
Statutory amounts151,65370,783
Estimated lapses and other adjustments(134,338)20,000
Total Authorities Forecast to be used2,624,5782,305,541

Authorities presented reflect current forecasts of statutory items, approved initiatives included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

b) Reconciliation of net cost of operations to requested authorities

Table 7: Parliamentary Authorities - Reconciliation of net cost of operations to requested authorities
Reconciliation of net cost of operations to requested authorities (in thousands of dollars)Estimated Results 2013Planned Results 2014
Net cost of operations2,515,0442,268,646
Adjustments for items affecting net cost of operations but not affecting appropriations
Services provided without charge by other government departments (Note 10)(79,706)(72,794)
Amortization of tangible capital assets (Note 9)(95,949)(111,036)
Decrease in workforce adjustment costs12,00122,645
Gain on disposal of tangible capital assets20,00020,000
Bad debt expenses(1,885)0
Decrease (increase) in vacation pay and compensatory leave(7,058)6,115
Decrease in accrued employee future benefits12,6989,473
 (139,899)(125,597)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Acquisitions of tangible capital assets (Note 9)236,715165,510
Increase (decrease) in inventory held for resale6,049(400)
Increase (decrease) in consumable inventory2,060(3,200)
Increase in prepaid expenses4,609582
 249,433162,492
Total Authorities Forecast to be used2,624,5782,305,541

6. Accounts Payable and Accrued Liabilities

Table 8: Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities (in thousands of dollars)Estimated Results 2013Planned Results 2014
Accounts payable to external parties134,106112,585
Accounts payable to other government departments and agencies29,86324,843
 163,969137,428
Accrued liabilities78,99965,421
Total242,968202,849

7. Employee Future Benefits

(a) Pension Benefits:

The Department's Canada Based Staff (CBS) participate in the Public Service Pension 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 2 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 Plans benefits and are indexed to inflation.

Both the employees and the Department contribute to the cost of the Plan. The forecasted expenses are $75,338,754 in 2013 and $67,804,879 in 2014.

The Department'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.

For locally-engaged staff (LES), the Government of Canada participates in local social security programs where possible. Where Canada does not participate in a local social security system providing pension benefits, or Canada participates in the local system and in addition, employer-sponsored supplemental pension plans are typically provided in the country, the Government of Canada provides supplemental pension benefits through a combination of local separate pension plans developed and administered based on local law and practice, or through the Pension Scheme for Employees of the Government of Canada, Locally Engaged which is administered by the Department. Local separate pension plans are pre-funded and are provided on defined benefit or defined contribution basis. The Pension Scheme is a defined benefit plan provided on a pay-as-you go basis. The Department is responsible for the expenses related to LES social security and pension (via Vote 15) (contributions to social security and separate pension plans and benefits from the Pension Scheme).

The employer contributions forecast are $32,347,000 in 2012-13 and $27,693,000 in 2013-14. The Department’s responsibility with regard to the Plan is limited to its contributions. The Government of Canada, the Plan's sponsor, is responsible for surpluses or deficiencies.

(b) Severance Benefits:

The Department provides severance benefits to its employees based on eligibility, years of service and salary at termination of employement. The severance benefit liability for Canada-based staff is based on a percentage provided by Treasury Board, applied to the eligible payroll. Treasury Board determines the percentage based on an actuarial evaluation of the future liability for the entire governments' eligible employees.

For locally engaged staff, the liability is based on historical data whereby an average severance payment per locally engaged staff is calculated. This cost is multiplied by the total number of eligible locally engaged staff and a layoff/payout rate. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the forecasted severance, is as follows:

Table 9: Employee Future Benefits - Severance Benefits
Severance Benefits (in thousands of dollars)Estimated Results 2013Planned Results 2014
Accrued benefit obligation, beginning of year162,655149,958
Expense for the year15,48616,510
Expected benefits payments during the year(28,183)(25,983)
Accrued benefit obligation, end of year149,958140,485

The forecasted CBS severance benefits liability is $59 million, and the LES liability is $81 million for 2014.

(c) Locally-engaged staff insurance benefits:

The Department is responsible for the expenses (premiums to local insured plans and benefits from local selfinsured plans) related to locally-engaged staff insurance benefits, which include medical, dental, disability and life insurance (via Vote 15). The forecasted expense is $15,624,000 in 2012-13 and $11,101,000 in 2013-14.

8. Accounts Receivable and Advances

Table 10: Accounts Receivable and Advances
Accounts Receivable and Advances (in thousands of dollars)Estimated Results 2013Planned Results 2014
Advances to Missions Abroad34,34035,949
Employee Posting Advances19,39520,377
Other Advances774796
Sub-total20,16921,173
Receivable from other government departments18,18218,182
Receivables from external parties16,30617,043
Cash in transit6,6986,896
Other advances6,5866,586
Sub-total47,77248,707
Allowance for doubtful accounts on external receivables and advances(12,585)(12,916)
Total89,69692,913

9. Tangible Capital Assets

Table 11: Tangible Capital Assets
Tangible Capital Assets (in thousands of dollars)Estimated Results 2013Planned Results 2014
Opening balance1,233,5101,344,550
Acquisition of tangible capital assets236,715165,510
Less: Current year amortization(95,949)(111,036)
Less: Current year disposals, write-offs and transfers(29,726)(17,704)
Total1,344,5501,381,320

10. Related Party Transactions

The Department is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Department enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Department received common services which were obtained without charge from other Government departments as disclosed below:

(a) Common services provided without charge by other government departments

During the year, the Department is forecasted to receive without charge from certain common service organizations, related to accommodation, legal fees, workers’ compensation coverage and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recognized in the Department's Future-Oriented Statement of Operations and Departmental Net Debt as follows:

Table 12: Related Party Transactions - Common services provided without charge by other government departments
Common services provided without charge by other government departments (in thousands of dollars)Estimated Results 2013Planned Results 2014
Employer’s contribution to the health and dental insurance plans48,18942,399
Accommodation29,53628,378
Legal services1,6491,679
Workers’ compensation332338
Total79,70672,794

The Government has centralized some of its administrative activities for efficiency and cost-effective delivery of programs to the public. As a results, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencues without charge. The costs of these services, such as payroll and cheque issuance services, provided by Public Works and Government Services Canada, and audit services, provided by the Office of the Auditor General, are not included as an expense in the Department’s consolidated Future-oriented statement of operations or the Department Net Financial Position.

(b) Administration of programs on behalf of other government departments

The Department has a number of memorandums of understanding (MOUs) with partner departments for the administration of unique, in year programs delivered abroad. At the date of preparation of these consolidated future oriented financial statements, the Department plans to incur expenses of $163,000,000 for operational and program activities on behalf of our partner departments. The Department also plans to collect $175,000,000 in revenues on behalf of our partner departments as of the date of preparation of these statements. These expenses and revenues are not reflected in these consolidated Future-Oriented Financial Statements, but rather in the Financial Statements of the respective government departments.

11. Segmented Information

Presentation by segment is based on the Department's Strategic Outcomes and Program Alignment Architecture (PAA) as presented in Note 1. The presentation by segment is based on the same accounting policies as in Note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segmented results for the period are as follows:

Table 13: Segmented Information
Segmented Information (in thousands of dollars)Estimated Results 2013Canada's International AgendaInternational Services for CanadiansCanada's International PlatformInternal ServicesPlanned Results 2014
International Policy Advice and IntegrationDiplomacy and AdvocacyInternational CommerceConsular Services and Emergency ManagementPassport CanadaGovernance, Strategic Direction and Common Service DeliveryGovernment of Canada Benefits
Transfer payments
Other countries and international organizations440,5914,609360,0346,874---13914371,670
Non-profit organizations315,6523,303257,9744,925---9910266,311
Other Transfers to any other sector25,10026220,503391---8121,165
Other levels of government in Canada11,5681219,473181---4-9,779
Industry9521077915-----804
Individuals761651-----67
Total transfer payments793,9398,306648,82812,387---25025669,796
Operating Expenses
Salaries and employee benefits1,131,35246,652140,271109,08834,384179,909197,664166,618123,698998,284
Professional and special services265,6397,33347,27210,2234,96835,528115,6294,51119,991245,455
Rentals216,0137,45952,85521,8669,27717,453126,1898,78623,905267,790
Transportation160,5882,19813,1453,1721,30033,35632,37828,7385,327119,614
Amortization of tangible capital assets95,9492,17715,2404,3542,177-87,087--111,035
Acquisition of machinery and equipment, including parts and consumables61,0331,0007,0002,0001,000-40,000--51,000
Acquisition of land, buildings and works346---------
Utilities, materials and supplies70,7399345,5561,35555452,86413,979-2,25877,500
Telecommunications6,64093552135551,3901,3581,2002255,008
Repair and maintenance41,0757544,3081,06043615,10616,719-2,04340,426
Information26,4845783,4538413443,7438,172-1,41218,543
Bad debt expense1,885---------
Other14,4682891,67041717078520244493,986
Total operating expenses2,092,21169,467291,322154,51154,665340,134639,377209,857179,3081,938,641
Total expenses2,886,15077,773940,150166,89854,665340,134639,377210,107179,3332,608,437
Revenues
Sales of Goods and Services509,606(203)13,1614,99998,792284,80666,100(424)(540)466,691
Gain on disposal of capital assets20,000-----20,000--20,000
Revenues earned on behalf of Government(158,500)--(2,400)(94,700)-(49,800)--(146,900)
Total Revenues371,106(203)13,1612,5994,092284,80636,300(424)(540)339,791
Net Cost from Continuing Operations2,515,04477,976926,989164,29950,57355,328603,077210,531179,8732,268,646