Revenues earned on behalf of Government are non-respendable and are not available to discharge the Agency’s liabilities. These revenues are presented as a reduction to the Agency’s revenues. While the President is expected to maintain accounting control, he or she has no authority regarding the disposition of non-respendable revenues.

As a result, non-respendable revenues are considered to be earned on behalf of Government of Canada and are therefore presented in reduction of the Agency’s revenues.

1. Expenses

   Expenses are recorded on an accrual basis:

   Transfer payments are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.

   Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.

   Services provided without charge by other government departments for accommodation, the employer’s contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

2. Employee future benefits

   1. Pension benefits:

      The Agency's eligible employees participate in the Public Service Pension Plan (the '’Plan’’), a multi-employer plan administered by the Government of Canada. Both the employees and the Agency contribute to the cost of the Plan. The Agency’s contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Agency. Under present legislation the Agency is not required to make contributions with respect to actuarial deficits of the Plan.

   2. Severance benefits:

      Eligible employees are entitled to severance benefits, as provided for under labor contracts and conditions of employment. The cost of these benefits is accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits at the Agency level using specific rates provided by the Office of the Chief Actuary of Canada.

   3. Other future benefit plans:

      The Government of Canada sponsors a variety of other future benefit plans from which employees and former employees can benefit during or after employment or upon retirement. The Public Service Health Care Plan and the Pensioners’ Dental Services Plan represent the two major future benefit plans available to the Agency’s employees.