9. Contingent Liabilities
Claims relating to both legal and employee grievances have been made against the Agency in the normal course of operations. Some of these potential liabilities 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 estimate of liability is accrued and an expense recorded in the financial statements.
Amounts have been accrued for contingent liabilities as at March 31, 2012 pertaining to legal claims. The amount of the contingent liabilities for legal claims recognized is based on management’s best estimate. Other legal claims against the Agency and other defendants include a class action suit related to bovine spongiform encephalopathy (BSE) for which amounts and likelihood of liability are not determinable.
Claims and litigations for which the outcome is not determinable and an amount of claim can be made by management amount to approximately $84,852,000 ($199,102,000 in 2010-2011) at March 31, 2012.
No amounts have been accrued pertaining to employee grievances as at March 31, 2012.
10. Contractual Obligations
The nature of the Agency’s activities can result in some large multi-year contracts and agreements whereby the Agency will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
| (In thousands of dollars) | 2013 | 2014 | 2015 | 2016 | 2017 and thereafter | Total |
|---|---|---|---|---|---|---|
| Operating leases | $1,924 | $4 | $- | $- | $- | $1,928 |
| Transfer payments | 960 | 500 | - | - | - | 1,460 |
| Operating contracts | 14,491 | 1,247 | 555 | 404 | 324 | 17,021 |
| Total | $17,375 | $1,751 | $555 | $404 | $324 | $20,409 |