Financial Statements of the
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

Audited

For the Year Ended March 31, 2016

Financial Statements For the Year Ended March 31, 2016 (PDF version, 184 KB)

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, 2016, and all information contained in these statements rests with the management of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). 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 FINTRAC's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in FINTRAC'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 FINTRAC 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.

FINTRAC is subject to periodic Core Control Audits performed by the Office of the Comptroller General of Canada (OCG) and uses the results of such audits to comply with the Treasury Board Policy on Internal Control.

A Core Control Audit was performed in 2013–14 by the OCG. The Audit Report and related Management Action Plan are posted on FINTRAC's website.

The firm of KPMG LLP has expressed an opinion on the fair presentation of the financial statements of FINTRAC, which does not include an audit opinion on the annual assessment of the effectiveness of the department's internal controls over financial reporting.

___________________
Gérald Cossette
Director
FINTRAC
Ottawa, Canada
Date: August 31, 2016
___________________
Stéphane Cousineau
Chief Financial Officer
FINTRAC
Ottawa, Canada
Date: August 29, 2016

KPMG LLP
Suite 1800
150 Elgin Street
Ottawa, ON K2P 2P8
Canada
Telephone 613-212-KPMG (5764)
Fax 613-212-2896
Internet www.kpmg.ca

INDEPENDENT AUDITORS' REPORT

To the Director of the Financial Transactions and Report Analysis Centre of Canada

We have audited the accompanying financial statements of the Financial Transactions and Report Analysis Centre of Canada (FINTRAC), which comprise the statement of financial position as at March 31, 2016, the statements of operations and departmental net financial position, change in departmental net debt and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by management in accordance with the accounting policies generally applied by the Government of Canada for government departments and agencies as stipulated in Treasury Board accounting policies.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with the accounting policies generally applied by the Government of Canada for government departments and agencies as stipulated in Treasury Board accounting policies; this includes determining that the basis of accounting is an acceptable basis for the preparation of these financial statements in the circumstances, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of FINTRAC as at March 31, 2016, its net cost of its operations, change in departmental net debt and its cash flows for the year then ended in accordance with the accounting policies generally applied by the Government of Canada for government departments and agencies as stipulated in Treasury Board accounting policies.

Basis of Accounting and Restriction on Use

Without modifying our opinion, we draw attention to note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared for the information and use of the management of FINTRAC and the Treasury Board of Canada Secretariat. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the management of FINTRAC, and the Treasury Board of Canada Secretariat, and should not be used by other parties.

Chartered Professional Accountants, Licensed Public Accountants
August 25, 2016
Ottawa, Canada

STATEMENT OF FINANCIAL POSITION (Audited)
For the Year Ended March 31
  2016
(in dollars)
2015
(in dollars)
Liabilities
Accounts payable and accrued liabilities (note 4) $5,973,311 $5,944,927
Vacation pay and compensatory leave 1,503,362 1,380,496
Employee future benefits (note 5) 2,243,704 2,392,412
Total liabilities 9,720,377 9,717,835
Financial assets
Due from the Consolidated Revenue Fund 5,255,671 4,854,581
Accounts receivable and advances (note 6) 854,366 1,042,055
Total gross financial assets 6,110,037 5,896,636
Financial assets held on behalf of Government
Accounts receivable and advances (note 6) (531,458) (415,562)
Total financial assets held on behalf of Government (531,458) (415,562)
Total net financial assets 5,578,579 5,481,074
Departmental net debt 4,141,798 4,236,761
Non-financial assets
Prepaid expenses 565,020 687,020
Tangible capital assets (note 7) 7,840,934 6,450,529
Total non-financial assets 8,405,954 7,137,549
Departmental net financial position $4,264,156 $2,900,788

Contractual obligations (note 8)

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

___________________
Gérald Cossette
Director
FINTRAC
Ottawa, Canada
Date: August 31, 2016
___________________
Stéphane Cousineau
Chief Financial Officer
FINTRAC
Ottawa, Canada
Date: August 29, 2016

STATEMENT OF OPERATIONS AND DEPARTMENTAL NET FINANCIAL POSITION (Audited)
For the Year Ended March 31
  Planned Results
2016
Revised
(note 13)
(in dollars)
2016
(in dollars)
2015
Recasted
(note 12)

(in dollars)
Expenses
Compliance Program $25,028,959 $24,008,677 $22,792,778
Financial Intelligence Program 23,920,731 23,950,382 21,576,289
Internal Services 8,288,289 8,672,921 9,320,236
Total Expenses 57,237,979 56,631,980 53,689,303
Revenues
Non-respendable revenue - 1,529,063 768,142
Revenues earned on behalf of Government - (1,529,063) (768,142)
Total Revenues - - -
Net cost of operations before Government funding and transfers 57,237,979 56,631,980 53,689,303
Government funding and transfers
Net cash provided by Government 53,347,847 54,741,707 50,069,713
Change in due from the Consolidated Revenue Fund (37,406) 401,090 1,093,743
Services provided without charge by other government departments (note 9) 2,786,717 2,855,466 2,700,321
Transfer of the transition payments for implementing salary payments in arrears (note 10) - (2,915) (1,212,584)
Net cost (revenue) of operations after Government funding and transfers 1,140,821 (1,363,368) 1,038,110
Departmental net financial position – beginning of year 3,540,391 2,900,788 3,938,898
Departmental net financial position – end of year $2,399,570 $4,264,156 $2,900,788

Segmented information (note 11)

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

STATEMENT OF CHANGE IN DEPARTMENTAL NET DEBT (Audited)
For the Year Ended March 31
  Planned Results
2016

(in dollars)
2016
(in dollars)
2015
(in dollars)
Net cost (revenue) of operations after Government funding and transfers $1,140,821 $(1,363,368) $1,038,110
Change due to tangible capital assets
Acquisition of tangible capital assets 634,095 3,524,130 1,562,203
Amortization of tangible capital assets (1,652,951) (1,604,786) (1,604,439)
Net loss on disposal of tangible capital assets including adjustments - (528,939) -
Total change due to tangible capital assets (1,018,856) 1,390,405 (42,236)
Change due to prepaid expenses (6,296) (122,000) (112,049)
Net increase (decrease) in departmental net debt 115,669 (94,963) 883,825
Departmental net debt – beginning of year 3,215,591 4,236,761 3,352,936
Departmental net debt – end of year $3,331,260 $4,141,798 $4,236,761

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

STATEMENT OF CASH FLOWS (Audited)
For the Year Ended March 31
  2016
(in dollars)
2015
Recasted
(note 12)
(in dollars)
Operating Activities
Net cost of operations before government funding and transfers $56,631,980 $53,689,303
Non-cash items:
Amortization of tangible capital assets (1,604,786) (1,604,439)
Loss on disposal of tangible capital assets (528,939) -
Services provided without charge by other government departments (note 9) (2,855,466) (2,700,321)
Transition payments for implementing salary payments in arrears (note 10) 2,915 1,212,584
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances (303,585) (208,408)
Decrease in prepaid expenses (122,000) (112,049)
Increase in accounts payable and accrued liabilities (28,384) (1,104,185)
Increase in vacation pay and compensatory leave (122,866) (34,502)
Decrease (increase) in employee future benefits 148,708 (630,473)
Cash used in operating activities 51,217,577 48,507,510
Capital investing activities
Acquisition of tangible capital assets 3,524,130 1,562,203
Cash used by capital investing activities 3,524,130 1,562,203
Net cash provided by Government of Canada $54,741,707 $50,069,713

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

NOTES TO THE FINANCIAL STATEMENTS (Audited)
For the Year Ended March 31

1. Authority and objectives

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) was legislated into existence in July 2000 to be Canada's Financial Intelligence Unit. The Centre exists to assist in the detection, prevention and deterrence of money laundering and the financing of terrorist activities. FINTRAC's ‘value-added' financial intelligence products and compliance functions are a unique contribution to the public safety of Canadians and to the protection of the integrity of Canada's financial system.

FINTRAC is an independent agency that operates at an arm's length from the law enforcement agencies and other entities to which it is authorized to disclose financial intelligence. It reports to the Minister of Finance, who is in turn accountable to Parliament for the activities of the Centre. FINTRAC was established by, and operates within, the ambit of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and its Regulations.

To effectively pursue its mandate, FINTRAC aims to achieve the following strategic outcome: A Canadian financial system resistant to money laundering and terrorist financing.

2. Summary of significant accounting policies

These financial statements have been prepared in accordance with the Government's accounting polices stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Parliamentary authorities

FINTRAC is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to FINTRAC do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2015–16 Report on Plans and Priorities, as revised as discussed in note 13. The planned results amounts in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt were prepared for internal management purposes and have not been previously published.

(b) Net cash provided by Government

FINTRAC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by FINTRAC is deposited to the CRF, and all cash disbursements made by FINTRAC 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.

(c) Amounts due from CRF

Amounts due from 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 FINTRAC is entitled to draw from the CRF without further appropriations to discharge its liabilities.

(d) Revenues

(e) Expenses

Expenses are recorded on the accrual basis:

(f) Employee future benefits

(g) Accounts receivable

Accounts receivables are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.

(h) Contingent liabilities

Contingent liabilities are potential liabilities that 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 financial statements.

(i) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. FINTRAC does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian reserves and museum collections.

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

Machinery and equipment

5 years

Informatics hardware

5 years

Informatics software (purchased and developed)

5 years

Other equipment, including furniture

5 to 10 years

Leasehold improvements

Lesser of remaining lease term and 10 years

(j) Measurement uncertainty

The preparation of these financial statements, in accordance with Canadian public sector accounting standards, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary authorities

FINTRAC receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statements of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, FINTRAC 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) Reconciliation of net cost of operations to current year authorities used

  2016
(in dollars)
2015
Recasted
(note 12)
(in dollars)
Net cost of operations before government funding and transfers $56,631,980 $53,689,303
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (1,604,786) (1,604,439)
Loss on disposal of tangible capital assets (528,939) -
Services provided without charge by other government departments (2,855,466) (2,700,321)
Increase in vacation pay and compensatory leave liability (122,866) (34,502)
Decrease (increase) in employee future benefits liability 148,708 (630,473)
Decrease in accrued liabilities not charged to authorities 103,930 -
Bad debt expense (241,899) -
Refund of prior years’ expenditures 16,684 22,124
Total items affecting net cost of operations but not affecting authorities (5,084,634) (4,947,611)
Adjustments for items not affecting net cost of operations but affecting authorities:

Acquisition of tangible capital assets

3,524,130 1,562,203
Transition payments for implementing salary payments in arrears 2,915 1,212,584
Decrease in prepaid expenses (122,000) (112,049)
Total items not affecting net cost of operations but affecting authorities 3,405,045 2,662,738
Current year authorities used $54,952,391 $51,404,430
(b) Authorities provided and used

  2016
(in dollars)
2015
(in dollars)
Authorities provided
Voted 1 – Operating expenditures $48,922,420 $45,644,643
Statutory amounts 5,517,524 5,405,213
Total: 54,439,944 51,049,856
Transfer from Treasury Board
Voted 1 – Operating expenditures 2,335,132 1,927,221
Statutory amounts (458,115) (418,578)
Total 1,877,017 1,508,643
Less:
Lapsed Vote 1 – Operating expenditures (1,364,570) (1,154,069)
Current year authorities used $54,952,391 $51,404,430

4. Accounts payable and accrued liabilities

The following table presents details of FINTRAC's accounts payable and accrued liabilities:
  2016
(in dollars)

2015
(in dollars)

Accounts payable – Other government departments and agencies $247,231 $228,391
Accounts payable – External parties 957,296 1,826,136
Total accounts payable 1,204,527 2,054,527
Accrued salaries and wages 3,949,758 3,581,028
Accrued liabilities 819,026 309,372
Total accounts payable and accrued liabilities $5,973,311 $5,944,927

5. Employee future benefits

(a) Pension benefits

FINTRAC's employees participate in the public service pension plan (the “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/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and FINTRAC contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups.

Each group has a distinct contribution rate.

The 2015–16 expense amounts to $5,059,409 ($4,986,635 in 2014–15). For Group 1 members, the expense represents approximately 1.25 times (1.41 times in 2014–15) the employee contributions and, for Group 2 members, approximately 1.24 times (1.39 times for 2014–15) the employee contributions.

FINTRAC'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.

(b) Severance benefits

FINTRAC provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded, and benefits will be paid from future authorities. Information about the severance benefits, calculated as at March 31, is as follows:

As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefits obligation.

Information about the severance benefits, measured as at March 31
  2016
(in dollars)
2015
(in dollars)
Accrued benefit obligation – Beginning of year $2,392,412 $1,761,939
Expense for the year 251,583 929,435
Benefits paid during the year (400,291) (298,962)
Accrued benefit obligation – End of year $2,243,704 $2,392,412

6. Accounts receivable and advances

The following table presents details of FINTRAC’s accounts receivable and advances balances:
  2016
(in dollars)
2015
(in dollars)
Receivables – Other government departments and agencies $565,626 $646,810
Receivables – External parties 532,509 470,265
Employee advances 4,750 4,750
Subtotal 1,102,885 1,121,825
Allowance for doubtful accounts on receivables from external parties (248,519) (79,770)
Gross accounts receivable and advances 854,366 1,042,055
Accounts receivable held on behalf of Government (531,458) (415,562)
Net accounts receivable and advances $322,908 $626,493

7. Tangible capital assets

COST
(in dollars)
  Opening balance Acquisitions Disposals and write-offs Closing balance
Machinery and equipment $1,606,533 $141,515 $84,983 $1,663,065
Informatics hardware 7,520,784 40,160 1,133,580 6,427,364
Software (purchased and developed) 16,692,735 87,462 659,045 16,121,152
Other equipment, including furniture 7,782,543 33,109 1,218,701 6,596,951
Leasehold improvements 8,995,544 83,125 507,147 8,571,522
Assets under construction - 3,138,759 - 3,138,759
Total $42,598,139 $3,524,130 $3,603,456 $42,518,813
ACCUMULATED AMORTIZATION
(in dollars)
  Opening balance Amortization Disposals and write-offs Closing balance
Machinery and equipment $966,095 $122,654 $64,783 $1,023,966
Informatics hardware 6,659,851 357,098 1,043,041 5,973,908
Software (purchased and developed) 15,956,447 327,028 627,261 15,656,214
Other equipment, including furniture 6,003,343 597,470 1,039,368 5,561,445
Leasehold improvements 6,561,874 200,536 300,064 6,462,346
Total $36,147,610 $1,604,786 $3,074,517 $34,677,879
NET BOOK VALUE
(in dollars)
  2016 2015
Machinery and equipment $639,099 $640,438
Informatics hardware 453,456 860,933
Software (purchased and developed) 464,938 736,288
Other equipment, including furniture 1,035,506 1,779,200
Leasehold improvements 2,109,176 2,433,670
Assets under construction 3,138,759 -
Total $7,840,934 $6,450,529

8. Contractual obligations

The nature of FINTRAC's activities can result in some large multi-year contracts and obligations whereby FINTRAC will be obligated to make future payments when the services are received. FINTRAC has entered into lease agreements with Xerox for copiers and with Public Services and Procurement Canada for office space in four locations across Canada. The minimum aggregate annual payments for future fiscal years are as follows:

The minimum aggregate annual payments for future fiscal years are as follows:
Fiscal Year (in dollars)
2016–17 $2,207,589
2017–18 1,305,296
2018–19 825,766
2019–20 202,289
2020–21 102,417
Total $4,643,357

9. Related party transactions

FINTRAC is related as a result of common ownership to all government departments, agencies, and Crown corporations. FINTRAC enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, FINTRAC 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, FINTRAC received services without charge from certain common service organizations, related to the employer's contribution to the health and dental insurance plans and workers' compensation coverage. These services provided without charge have been recorded in the Department's Statement of Operations and Departmental Net Financial Position as follows:

Common services provided without charge by other government departments
  2016
(in dollars)
2015
Recasted
(note 12)
(in dollars)
Employer's contribution to the health and dental insurance plans $2,855,466 $2,700,321

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada, are not included in FINTRAC's Statement of Operations and Departmental Net Financial Position. The costs of information technology infrastructure services provided by Shared Services Canada of $6,214,010 are also not included in FINTRAC's Statement of Operations and Departmental Net Financial Position.

(b) Other transactions with related parties

Other transactions with related parties
  2016
(in dollars)
2015
(in dollars)
Expenses – Other government departments and agencies $13,790,397 $10,218,782

10. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in 2014–15. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay process. This change to the pay system had no impact on the expenses of the Department. However, it did result in the use of additional spending authorities by the Department. Prior to year end, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Services and Procurement Canada, the department who is responsible for the administration of the Government pay system.

11. Segmented information

Presentation by segment is based on FINTRAC's program alignment architecture. The presentation by segment is based on the same accounting policies described in the Summary of Significant Accounting Policies in note 2. The following table presents the expenses incurred and revenues generated for the main programs, by major object of expenses and type of revenue. The segment results for the period are as follows:

Segmented information
  2016
(in dollars)
2015
Recasted
(note 12)
(in dollars)
  Compliance Program Financial Intelligence Program Internal Services Total Total
Operating Expenses
Salaries and employee benefits $18,024,127 $15,831,487 $7,022,464 $40,878,078 $40,289,948
Accommodation 2,141,891 2,141,891 - 4,283,782 4,244,550
Professional and special services 982,257 1,138,429 789,522 2,910,208 3,410,366
Acquisition of machinery and equipment 89,317 2,199,251 23,116 2,311,684 122,902
Amortization of tangible capital assets 686,039 619,285 299,462 1,604,786 1,604,439
Rentals 514,776 867,847 184,739 1,567,362 1,846,555
Travel 550,875 409,999 71,799 1,032,673 888,651
Repairs and maintenance 265,651 265,285 21,684 552,620 552,567
Utilities, materials and supplies 154,548 141,301 42,710 338,559 417,336
Information services 112,372 92,207 98,925 303,504 184,175
Transportation and telecommunication 37,595 34,326 37,027 108,948 157,339
Other expenditures 449,229 209,074 81,473 739,776 (29,525)
Total Operating Expenses 24,008,677 23,950,382 8,672,921 56,631,980 53,689,303
Total Expenses 24,008,677 23,950,382 8,672,921 56,631,980 53,689,303
Revenues
Non-respendable revenue 1,516,398 - 12,665 1,529,063 768,142
Revenues earned on behalf of Government (1,516,398) - (12,665) (1,529,063) (768,142)
Total Revenues - - - - -
Net Cost from Continuing Operations $24,008,677 $23,950,382 $8,672,921 $56,631,980 $53,689,303

12. Recast of Previous Year’s Results

In accordance with the Office of the Comptroller General’s interpretation of Treasury Board Accounting Standard 1.2, the estimated costs of services provided without charge by Shared Services Canada (SSC) should not be recognized as an expense and service provided without charge by government departments. In the prior year’s financial statements, FINTRAC recognized these costs as expenses and services provided without charge in the statement of operations, the statement of cash flows, and the related party transactions note disclosure. As a result, the 2015 comparative figures in these financial statements have been recast as described below:

Recast of Previous Year's Results
  2015 as previously stated
(in dollars)
Effect of change
(in dollars)
2015
Recasted
(in dollars)
Statement of Operations and Departmental Net Financial Position
Expenses
Compliance Program $25,313,410 $(2,520,632) $22,792,778
Financial Intelligence Program 24,096,920 (2,520,631) 21,576,289
Internal Services 10,209,870 (889,634) 9,320,236
Total Expenses 59,620,200 (5,930,897) 53,689,303
Net cost of operations before government funding and transfers 59,620,200 (5,930,897) 53,689,303
Government funding and transfers
Services provided without charge by other government departments 8,631,218 (5,930,897) 2,700,321
Net cost of operations after government funding and transfers 1,038,110 - 1,038,110
Statement of Cash Flows
Net cost of operations before government funding and transfers 59,620,200 (5,930,897) 53,689,303
Non-cash items
Services provided without charge by other government departments (8,631,218) 5,930,897 (2,700,321)
Note 9 Related party transactions – part (a) Common services provided without charge by other government departments
Information technology services $5,930,897 $(5,930,897) -
Total $8,631,218 $(5,930,897) $2,700,321

13. Revision of Planned 2016 Results

FINTRAC reported the expected costs of services provided without charge from Shared Services Canada in their 2016 Planned Results presented in the Future Oriented Financial Statements included in the 2015–16 Report on Plans and Priorities. As described in note 12, the costs of services provided without charge by Shared Services Canada should not be included in FINTRAC's expenses.  As a result, the 2016 Planned Results reported in the Statement of Operations and Departmental Net Financial Position have been revised as described below:

Revision of Planned 2016 Results
  Planned Results 2016 as previously reported
(in dollars)
Effect of change
(in dollars)
Planned Results 2016 Revised
(in dollars)
Statement of Operations and Departmental Net Financial Position
Expenses
Compliance Program $27,689,496 $(2,660,537) $25,028,959
Financial Intelligence Program 26,463,466 (2,542,735) 23,920,731
Internal Services 9,169,321 (881,032) 8,288,289
Total Expenses 63,322,283 (6,084,304) 57,237,979
Net cost of operations before government funding and transfers 63,322,283 (6,084,304) 57,237,979
Government funding and transfers
Services provided without charge by other government departments 8,871,021 (6,084,304) 2,786,717
Net cost of operations after government funding and transfers 1,140,821 - 1,140,821

14. Comparative information

Comparative figures have been reclassified to conform to the current year's presentation. These include:

Date Modified: