Financial Statements for the Year Ended March 31, 2009 (unaudited)

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

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 judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

The Office of the Commissioner of Lobbying has an independent audit committee. The responsibilities of the committee are to provide the Commissioner of Lobbying with objective guidance on risk management, control framework and reporting practices.

Ottawa, Ontario
July 20, 2009

Office of the Commissioner of Lobbying
Statement of Operations (unaudited)
For the year ended March 31, 2009

(in dollars)	2009	2008
Expenses (note 4)
Registration of Lobbyists	$1,836,166	$1,729,539
Education and Research	1,507,349	1,005,362
Reviews and Investigations under the Lobbying Act and the Lobbyists' Code of Conduct	1,726,125	882,671
Total Expenses	5,069,640	3,617,572
Revenues
Registration of Lobbyists	-	1,011
Education and Research	5	10
Total Revenues	5	1,021
Net Cost of Operations	$5,069,635	$3,616,551

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

Office of the Commissioner of Lobbying
Statement of Financial Position (unaudited)
at March 31, 2009

(in dollars)	2009	2008
Assets
Financial Assets Accounts receivable and advances (Note 5)	$77,246	$68,145
Total Financial Assets	77,246	68,145
Non-financial Assets Tangible capital assets (Note 6)	1,966,612	2,057,220
Total Non-financial Assets	1,966,612	2,057,220
Total Assets	$2,043,858	$2,125,365
Liabilities
Accounts payable and accrued liabilities (Note 7)	$260,347	$241,551
Vacation pay and compensatory leave	93,224	93,224
Employee future benefits (Note 8)	445,075	352,434
Total liabilities	798,646	687,209
Equity of Canada	1,245,212	1,438,156
Total Liabilities and Equity of Canada	$2,043,858	$2,125,365

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

Office of the Commissioner of Lobbying
Statement of Equity of Canada (unaudited)
For the year ended March 31, 2009

(in dollars)	2009	2008
Equity of Canada, beginning of year	$1,438,156	$493,037
Net cost of operations	(5,069,635)	(3,616,551)
Current year appropriations used (Note 3)	4,466,438	4,186,928
Change in net position in the Consolidated Revenue Fund (Note 3)	(11,464)	(391)
Revenue not available for spending (Note 3)	(5)	(1,021)
Services provided without charge (Note 9)	421,721	376,154
Equity of Canada, end of year	$1,245,212	$1,438,156

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

Office of the Commissioner of Lobbying
Statement of Cash Flow (unaudited)
For the year ended March 31, 2009

(in dollars)	2009	2008
Operating activities
Net cost of operations	$5,069,635	$3,616,551
Non-cash items:
Services provided without charge	(421,721)	(376,154)
Amortization of tangible capital assets	(149,489)	(155,090)
Loss on disposal and write down of tangible assets	(703,220)	–
Variations in Statement of Financial Position:
Increase in assets	9,101	68,145
Increase in liabilities	(111,437)	(111,364)
Cash used by operating activities	3,692,869	3,042,088
Capital investment activities
Assets in development	–	1,083,881
Acquisitions of tangible capital assets	762,100	59,547
Cash used by capital investment activities	762,100	1,143,428
Financing activities
Net cash provided by Government of Canada (Note 3)	$4,454,969	$4,185,516

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

Office of the Commissioner of Lobbying
Notes to the Financial Statements (unaudited)
For the year ended March 31, 2009

1. Authority and Objectives

The mandate of the Office of the Commissioner of Lobbying (OCL) is derived from the Lobbying Act. Its purpose is to ensure transparency and accountability in the lobbying of public office holders in order to contribute to confidence in the integrity of government decision-making.

Registration of Lobbyists
Lobbying the federal government is a legitimate activity but it must be done transparently. The Lobbying Act requires that individuals who are paid to lobby public office holders must disclose certain details of their lobbying activities. OCL approves lobbyists' registrations and makes them available for searching in an electronic registry that is accessible on the Internet.

Education and Research
OCL develops and implements educational and research programs to foster awareness of the requirements of the Lobbying Act and the Lobbyists' Code of Conduct. The primary audiences for programs are lobbyists, their clients and public office holders.

Reviews and Investigations under the Lobbying Act and the Lobbyists' Code of Conduct
OCL validates information provided by registered lobbyists to ensure accuracy. Allegations of non-registration or misconduct by lobbyists are reviewed and formal investigations are carried out when required.

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations – OCL is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to OCL do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net Cash Provided by Government – OCL operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by OCL is deposited to the CRF and all cash disbursements made by OCL 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 federal government.

(c) Change in net position in the Consolidated Revenue Fund is the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by OCL. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues: Revenues from registration are recognized in the accounts based on the services provided in the year.

(e) Expenses are recorded on the accrual basis:

(f) Employee future benefits:

(g) Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(h) Tangible capital assets: All tangible capital assets having an initial cost of $2,000 or more are recorded at their acquisition cost. OCL 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:

(i) Measurement uncertainty — The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues 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 Appropriations

OCL receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, OCL 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 appropriations
used

(in dollars)	2009	2008
Net cost of operations	$5,069,635	$3,616,551
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Deduct):
Services provided without charge (Note 9)	(421,721)	(376,154)
Revenue not available for spending	5	(1,021)
Employee severance benefits (Note 8)	(92,641)	(45,391)
Amortization of tangible capital assets (Note 6)	(149,489)	(155,090)
(Loss) gain on disposal and write-down of tangible capital assets	(703,220)	-
Vacation pay and compensatory leave	-	(3,839)
Refund of previous year expenditures	957	-
Other adjustments	812	(1,276)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (deduct):
Acquisition of tangible capital assets	762,100	1,143,428
	(603,197)	570,377
Current year appropriations used	$4,466,438	$4,186,928
b)Appropriations provided and used
(in dollars)	2009	2008
Vote 45 (2008: Vote 30) - Operating expenditures	$4,526,168	$4,296,292
Statutory amounts	368,298	301,304
Less:
Lapsed appropriations: Operating	(428,028)	(410,668)
Current year appropriations used	$4,466,438	$4,186,928
c)Reconciliation of net cash provided by Government to current year appropriations used
(in dollars)	2009	2008
Net cash provided by Government of Canada	$4,454,969	$4,185,516
Revenue not available for spending	5	1,021
Change in net position in the Consolidated Revenue Fund
Variation in accounts payable and accrued liabilities	18,796	69,812
Variation in accounts receivable and advances	(9,101)	(68,145)
Variation in vacation pay and compensatory leave	–	(3,839)
Refund of previous year expenditures	957	–
Other adjustments	812	2,563
	11,464	391
Current year appropriations used	$4,466,438	$4,186,928
4. Expenses
(in dollars)	2009	2008
Salaries and employee benefits	$3,017,969	$2,297,001
Professional and special services	776,258	556,445
Loss on disposal of tangible capital asset	703,220	–
Accommodation (Note 9 (a))	255,419	252,992
Amortization	149,489	155,090
Information services	60,689	11,400
Travel	33,322	23,552
Utilities, materials and supplies	31,179	44,969
Telecommunications services	26,214	24,317
Repair and maintenance	5,929	205,857
Rental	8,952	6,400
Furniture and equipment	1,000	39,549
Total Expenses	$5,069,640	$3,617,572
5. Accounts Receivable and Advances
(in dollars)	2009	2008
Receivables from other Federal Government departments and agencies	$77,046	$65,979
Receivables from external parties	–	1,966
Employee advances	200	200
Total accounts receivable and advances	$77,246	$68,145

6. Tangible Capital Assets

Informatics software was retired during the year, replaced by assets previously in development. The amortization expense for the year ended March 31, 2009 is $149,489 ($155,090 in 2008).

7. Accounts Payable and Accrued Liabilities

(in dollars)	2009	2008
External
Accounts payable	$–	$71,699
Accrued liabilities	66,820	3,216
Accrued salaries and wages	183,322	105,075
Total External	250,142	179,990
Internal
Accounts payable to other Federal Government departments and agencies	10,205	61,561
Total accounts payable and accrued liabilities	$260,347	$241,551

8. Employee Future Benefits

a) Pension benefits: OCL employees 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, multiplied by the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and are indexed to inflation.

Both the employees and OCL contribute to the cost of the Plan. The 2008-09 expense amounts to $265,911 ($219,650 in 2007-08), which represents approximately 2.0 times (2.1 times for 2007-08) the contributions by employees.

OCL'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: OCL provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in dollars)	2009	2008
Accrued benefit obligation, beginning of year	$352,434	$307,043
Expense for the year	181,831	45,391
Benefits paid during the year	(89,190)	–
Accrued benefit obligation, end of year	$445,075	$352,434

9. Related party transactions

The Office of the Commissioner of Lobbying is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. OCL enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, OCL received services, which were obtained without charge from other Government departments as presented in part (a).

(a) Services provided without charge:

During the year OCL received without charge from other departments, accommodation and the employer's contribution to the health and dental insurance plans. These services without charge have been recognized in the OCL Statement of Operations as follows:

(in dollars)	2009	2008
Accommodation	$255,419	$252,992
Employer's contribution to insurance plans	166,302	$123,162
Total	$421,721	$376,154

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the OCL Statement of Operations.

10. Comparative Information

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

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