Canadian Grain Commission Revolving Fund, Financial statements, March 31, 2025
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, 2025, and all information contained in these statements rests with the management of the Canadian Grain Commission. These financial statements have been prepared by management in accordance with the reporting requirements of the Receiver General for Canada for revolving funds.
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 department's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Commission’s Departmental Results Report is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting 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 the department, and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.
In accordance with the Policy on Financial Management, internal control activities for the year ended March 31, 2025, are summarized in the annex along with future action plans.
The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to assess key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The effectiveness and adequacy of the Canadian Grain Commission’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the department’s operations. It is also reviewed by the Departmental Audit Committee, which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting. The Departmental Audit Committee reviews the results of the annual audit and recommends approval of the financial statements to the Deputy Head of the Canadian Grain Commission.
An independent external auditing firm has expressed an opinion on the fair presentation of the financial statements of the Canadian Grain Commission, which does not include an audit opinion on the annual assessment of the effectiveness of the department’s internal controls over financial reporting.
Deputy Head
Winnipeg, Canada
Chief Financial Officer
Winnipeg, Canada
Independent Auditor’s Report
To the Deputy Head and the Departmental Audit Committee of the Canadian Grain Commission Revolving Fund
Our opinion
In our opinion, the accompanying financial statements of the Canadian Grain Commission Revolving Fund (the Fund) as at March 31, 2025 and for the year then ended are prepared, in all material respects, in accordance with the basis of accounting described in note 2 to the financial statements.
What we have audited
The Fund's financial statements comprise:
- the statement of financial position as at March 31, 2025;
- the statement of operations and net assets for the year then ended;
- the statement of cash flows for the year then ended; and
- the notes to the financial statements, which include significant accounting policies and other explanatory information.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.
Emphasis of matter - basis of accounting and restriction on use
We draw attention to note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Fund in meeting the requirements of Section 1 of the Receiver General for Canada Instructions for Volume III of the Public Accounts of Canada. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the management of the Fund and should not be used by parties other than the Fund, the Treasury Board of Canada and the Receiver General for Canada. Our report is not modified in respect of this matter.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for the preparation of the financial statements in accordance with the basis of accounting described in note 2 to the financial statements 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.
In preparing the financial statements, management is responsible for assessing the Fund's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Fund's financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit 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 Fund's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Fund to cease to continue as a going concern.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers LLP
Chartered Professional Accountants
Winnipeg, Manitoba
June 10, 2025
Statement of Financial Position
| Assets | 2025 $ | 2024 $ |
|---|---|---|
| Financial Assets | ||
| Accounts receivable (note 3) | 6,255 | 5,642 |
| Accountable advances | - | 2 |
| Total financial assets | 6,255 | 5,644 |
| Non-financial assets | ||
| Prepaid expenses | 604 | 556 |
| Tangible capital assets (note 4) | 12,169 | 11,351 |
| Total non-financial assets | 12,773 | 11,907 |
| Total assets | 19,028 | 17,551 |
| Liabilities and net assets | 2025 $ | 2024 $ |
|---|---|---|
| Liabilities | ||
| Accounts payable and accrued liabilities (note 5) | 2,594 | 2,791 |
| Salaries payable | 4,196 | 3,883 |
| Vacation, overtime and compensatory leave payable | 2,703 | 2,797 |
| Deferred revenue | 1,010 | 982 |
| Employee severance benefits liability (note 6) | 651 | 621 |
| Total liabilities | 11,154 | 11,074 |
| Net assets (note 8) | 7,874 | 6,477 |
| Total liabilities and net assets | 19,028 | 17,551 |
| Contractual obligations (note 9) | ||
| Contingent liabilities (note 10) | ||
| Producer payment security (note 11) | ||
Statement of Operations and Net Assets
| Grain Regulation | Internal Services | 2025 Total | 2024 Total | ||||
|---|---|---|---|---|---|---|---|
| Planned Results $ | Actual $ | Planned Results $ | Actual $ | Planned Results $ | Actual $ | Actual $ | |
| Revenues | |||||||
| Fees and services | 60,621 | 56,130 | - | - | 60,621 | 56,130 | 45,787 |
| Parliamentary appropriations (note 7) | 6,793 | 6,779 | 295 | 295 | 7,088 | 7,074 | 6,895 |
| Licensing and producer cars | 2,285 | 2,136 | - | - | 2,285 | 2,136 | 2,043 |
| Optional services | 1,584 | 1,838 | 25 | 22 | 1,609 | 1,860 | 1,542 |
| Other revenues | - | - | - | 53 | - | 53 | 56 |
| Total revenues | 71,283 | 66,883 | 320 | 370 | 71,603 | 67,253 | 56,323 |
| Operating expenses | |||||||
| Personnel | 35,920 | 38,558 | 18,571 | 17,415 | 54,491 | 55,973 | 53,346 |
| Rentals | 3,836 | 4,049 | 1,540 | 1,835 | 5,376 | 5,884 | 6,210 |
| Amortization of tangible capital assets | - | 3,021 | - | 633 | - | 3,654 | 3,381 |
| Professional services | 606 | 509 | 3,388 | 2,722 | 3,994 | 3,231 | 3,323 |
| Transport and communication | 2,308 | 1,805 | 978 | 953 | 3,286 | 2,758 | 2,676 |
| Repairs and maintenance | 3,853 | 1,250 | 138 | 218 | 3,991 | 1,468 | 1,651 |
| Materials and supplies | 1,277 | 1,112 | 77 | 72 | 1,354 | 1,184 | 1,080 |
| Machinery and equipment | 748 | 737 | 494 | 344 | 1,242 | 1,081 | 1,115 |
| Information | 21 | 93 | 126 | 123 | 147 | 216 | 145 |
| Loss (gain) on disposal of tangible assets | - | (23) | - | 41 | - | 18 | (8) |
| Other expenses | - | 2 | 1,513 | 8 | 1,513 | 10 | 8 |
| Total expenses | 48,569 | 51,113 | 26,825 | 24,364 | 75,394 | 75,477 | 72,927 |
| Net results | 22,714 | 15,770 | (26,505) | (23,994) | (3,791) | (8,224) | (16,604) |
| Net assets - Beginning of year | 6,477 | 5,759 | |||||
| Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year | 9,621 | 17,322 | |||||
| Net assets - End of year | 7,874 | 6,477 | |||||
Statement of Cash Flows
| Operating activities | 2025 $ | 2024 $ |
|---|---|---|
| Net results for the year | (8,224) | (16,604) |
| Items not affecting use of funds | ||
| Amortization of tangible capital assets | 3,654 | 3,381 |
| Provision for (recovery of) employee severance benefits | 87 | (54) |
| Gain (loss) on disposal of tangible capital assets | 18 | (8) |
| Subtotal | (4,465) | (13,285) |
| Payment of employee severance benefits | (57) | (298) |
| Variations in statement of financial position | ||
| Accounts receivable | (613) | 1,910 |
| Accountable advances | 2 | (1) |
| Prepaid expenses | (48) | 89 |
| Accounts payable and accrued liabilities | (197) | 156 |
| Salaries payable | 313 | (2,325) |
| Vacation, overtime and compensatory leave payable | (94) | 58 |
| Deferred revenue | 28 | 49 |
| Net financial resources used by operating activities | (5,131) | (13,647) |
| Capital investing activities | ||
| Acquisition of tangible capital assets | (4,521) | (3,683) |
| Proceeds from disposal of tangible capital assets | 31 | 8 |
| Net financial resources used by capital investing activities | (4,490) | (3,675) |
| Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year | (9,621) | (17,322) |
| Accumulated net charge against the Fund's authority, beginning of year | 110,136 | 127,458 |
| Accumulated net charge against the Fund's authority, end of year | 100,515 | 110,136 |
Notes to Financial Statements
1. Authority and purpose
Canadian Grain Commission Revolving Fund (the Fund) derives its authority from the Canada Grain Act. The Fund's mandate as set out in the Act is to, "in the interest of grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets."
The Fund's core responsibility is Grain Regulation: to regulate grain handling in Canada and establish and maintain science-based standards for Canadian grain. Internal Services supports this core responsibility.
The Fund was established under Appropriation Act No. 6, 1994–1995. The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, tangible capital acquisitions and temporary financing of accumulated operating deficits, with a drawdown authority of $2,000,000. The Fund also receives annual appropriation funding through the Appropriation Acts approved by Parliament.
The Fund's fee revenue is largely based on grain volumes, which fluctuate from year to year. In years with higher-than-average grain volumes, revenues may exceed expenses and the Fund could accumulate surplus. In years with lower-than-average grain volumes, revenues could be less than expenses and the Fund would be required to draw on its surplus.
In accordance with the Government's policy on self-insurance, the Fund does not carry its own insurance. The Fund is not subject to income taxes.
2. Significant accounting policies
The financial statements have been prepared in accordance with the reporting requirements of the Receiver General for Canada for revolving funds. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles for the public sector because:
- the net debt indicator and the statement of change in net debt are not presented in the financial statements;
- the liabilities for employee severance liability are based on management's best estimate rather than actuarial valuations;
- the services received without charge from other government departments and agencies are not reported as expenses; and
- no liability is recorded for sick leave.
The significant accounting policies are as follows:
- a. Use of estimates
- The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the periods covered by the financial statements. The principal financial statement components subject to measurement uncertainty include the estimated useful life of tangible capital assets, allowance for doubtful accounts, and the liabilities for employee severance benefits. Actual results could differ from those estimates. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
- b. Planned results
- Planned results for the fiscal year ended March 31, 2025 disclosed in the statement of operations and net assets were based on revenues and expenses as per the Fund's 2024–2025 Departmental Plan and include adjustments subsequent to its preparation.
- c. Revenues and revenue recognition
- Revenues include exchange transactions where services are provided for consideration where a performance obligation exists, and non-exchange transactions where no performance obligations exist to provide a good or service. These transactions can be recurring or non-recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonably expected to be earned again in future years.
- Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.
- Revenue is recognized when (or as) the performance obligation is satisfied through providing the promised services to a specific payor. Most of the Fund's fees and services are related to inspection and weighing activities that are dependent on grain volumes handled, and this revenue is recognized at a point in time. Licensing fees are recognized as the performance obligation is satisfied over a period of time, typically a 12-month period. Funds from payors received but where the performance obligation is not yet satisfied are presented as deferred revenue.
- The Fund's operations are funded primarily from a permanent authority from Parliament (revolving fund) where the Fund is allowed to spend fees collected. Some of the operations of the Grain Research Program and Internal Audit are funded by ongoing Parliamentary appropriations through their annual votes. Parliamentary appropriations are non-exchange transactions that are recognized as revenue in the Fund in the period the event giving rise to the revenue occurred.
- d. Expense recognition
- Unless otherwise disclosed, expenses are recorded in the period they are incurred.
- e. Accounts receivable
- Accounts receivable are stated at amounts expected to be ultimately realized. A bad debt expense is recognized for accounts receivable with interest or principal payments that are 180 days past due and deemed uncollectable.
- f. Tangible capital assets
- Certain assets previously under the custody of the Department of Agriculture and Agri-Food Canada were assumed by the Fund on April 1, 1995. The assumed assets were considered to be contributed capital and recorded at the Crown's estimated net book value. Assets acquired subsequent to April 1, 1995, were recorded at cost.
- All tangible capital assets with a cost equal to or greater than $10,000 are capitalized. Proceeds from the disposal of tangible capital assets are retained by the Fund.
- Tangible capital assets are amortized on a straight-line basis over their estimated useful lives, commencing in the month after they are put into service, as follows:
| Scientific equipment | 5 years |
| Office equipment and furniture | 5 years |
| Operational equipment | 10 years |
| Motor vehicles | 5 years |
| Computer equipment and software | 3 years |
| Leasehold improvements | 5 years |
The costs for assets under construction are capitalized as incurred with amortization commencing in the month after they are put into service.
- g. Vacation, overtime and compensatory leave
- Vacation, overtime and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
- h. Employee severance benefits
- The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from management's estimate of the liability.
- i. Pension plan
- Employees of the Fund are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefit charge assessed against the Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts. Current legislation does not require the Fund to make contributions for any actuarial deficiencies of the Public Service Superannuation Account.
- j. Sick leave
- Employees are permitted to accumulate unused sick leave. However, such leave entitlements do not vest and may only be used in the event of illness. Unused sick leave on employee termination is not payable to the employee. No amount has been accrued in these financial statements, and payments of sick leave benefits are included in current operations as incurred.
3. Accounts receivable
| 2025 $ | 2024 $ | |
|---|---|---|
| Other government departments and agencies | 135 | 63 |
| Outside parties | 6,125 | 5,584 |
| 6,260 | 5,547 | |
| Less: Allowance for doubtful accounts from outside parties | 5 | 5 |
| Total | 6,255 | 5,642 |
4. Tangible capital assets
| Cost | Accumulated amortization | 2025 | 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening balance $ | Acquisitions $ | Adjustment $ | Disposals and transfers $ | Closing balance $ | Opening balance $ | Amortization $ | Disposals and transfers $ | Closing balance $ | Net book value $ | Net book value $ | |
| Scientific equipment | 23,633 | 864 | - | (398) | 24,099 | 18,756 | 1,623 | (398) | 19,981 | 4,118 | 4,877 |
| Office equipment and furniture | 267 | - | - | - | 267 | 247 | 6 | - | 253 | 14 | 20 |
| Operational equipment | 3,145 | 198 | - | (80) | 3,263 | 2,497 | 174 | (80) | 2,591 | 672 | 648 |
| Motor vehicles | 430 | 396 | - | (41) | 785 | 385 | 38 | (41) | 382 | 403 | 45 |
| Computer equipment and software | 12,019 | 72 | 124 | (45) | 12,170 | 9,677 | 1,057 | (45) | 10,689 | 1,481 | 2,342 |
| Leasehold improvements | 10,611 | - | 822 | - | 11,433 | 9,446 | 756 | - | 10,202 | 1,231 | 1,165 |
| Assets under construction* | 2,254 | 2,991 | (946) | (49) | 4,250 | - | - | - | - | 4,250 | 2,254 |
| 52,359 | 4,521 | - | (613) | 56,267 | 41,008 | 3,654 | (564) | 44,098 | 12,169 | 11,351 | |
* Assets under construction consist of leasehold improvements and in-house software development.
5. Accounts payable and accrued liabilities
| 2025 $ | 2024 $ | |
|---|---|---|
| Other government departments and agencies | 1,107 | 660 |
| Outside parties | 1,432 | 2,131 |
| Security deposit | 55 | - |
| Total | 2,594 | 2,791 |
6. Employee severance benefits liability
With Budget 2011, the Government of Canada announced its intention to eliminate the ongoing accumulation of severance benefits. All collective agreements for the Fund have been negotiated and severance benefits have ceased to accumulate. The amounts reported are for employees who did not liquidate their severance and will be paid on their departure from the public service.
| 2025 $ | 2024 $ | |
|---|---|---|
| Employee severance benefits liability, beginning of year | 621 | 973 |
| Expense for the year | 87 | (54) |
| Benefits paid during the year | (57) | (298) |
| Employee severance benefits liability, end of year | 651 | 621 |
7. Parliamentary appropriations
The Fund is financed by the Government of Canada through a combination of ongoing Parliamentary appropriations, the authority to spend fees collected, accumulated surpluses from prior years and a revolving line of credit of $2,000,000.
The government funding basis is used to recognize transactions affecting Parliamentary appropriations. The statement of operations and net assets is based on accrual accounting. Consequently, items presented in the statement of operations and net assets are not necessarily the same as those provided through appropriations from Parliament. Items recognized in the statement of operations and net assets in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Fund has appropriation authorities for the year on a government-funding basis and some on an accrual accounting basis. Details on appropriation authorities provided and used are shown in the following table.
| 2025 $ | 2024 $ | |
|---|---|---|
| Total appropriation funds provided | 7,074 | 6,895 |
| Lapsed | - | - |
| Current year appropriation funds provided and used | 7,074 | 6,895 |
8. Net assets
Contributed capital represents the value of capital assets financed from capital contributions at the inception of the Fund.
The accumulated surplus is the accumulation of each fiscal year's surplus net of deficits since the inception of the Fund.
The accumulated net charge against the Fund's authority represents the cumulative receipts and disbursements over the life of the Fund.
| 2025 $ | 2024 $ | |
|---|---|---|
| Contributed capital | 4,941 | 4,941 |
| Accumulated surplus | ||
| Opening balance | 111,672 | 128,276 |
| Net results | (8,224) | (16,604) |
| Closing balance | 103,448 | 111,672 |
| Accumulated net charge against the Fund’s authority | ||
| Opening balance | (110,136) | (127,458) |
| Change in net resources used | 9,621 | 17,322 |
| Closing balance | (100,515) | (110,136) |
| Total net assets | 7,874 | 6,477 |
9. Contractual obligations
The Fund leases its premises primarily under Lease Out Contracts. A Lease Out Contract is a formal agreement between the Fund and Public Services and Procurement Canada, recording the terms and conditions that govern the provision and occupancy of the accommodation. The Fund has a total of 20 separate Lease Out Contracts (2024 – 17) with various term lengths up to 10 years. In addition, the Fund has a total of 4 direct lease agreements (2024 – 6): 2 with the University of Manitoba for the rental of laboratory and office space, 1 with Air Canada for the rental of data space and 1 with Gaudaug Holdings for the rental of warehouse storage space.
For the year ended March 31, 2025, the Fund incurred $4,976,000 in costs associated with its occupancy and lease obligations (2024 – $4,925,000). Expected future payouts by fiscal year are as follows:
| $ | |
|---|---|
| 2026 | 4,458 |
| 2027 | 1,401 |
| 2028 | 866 |
| 2029 | 719 |
| 2030 and thereafter | 2,101 |
| Total | 9,545 |
10. Contingent liabilities
In the normal course of its operations, the Fund may become involved in various legal actions and grievances with financial implications. 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 estimated liability is accrued and an expense is recorded in the financial statements.
As at March 31, 2025, there were no accruals for contingent liabilities around various legal actions and grievances with financial implications in the financial statements (2024 – nil).
11. Producer payment security
Through the Fund's Safeguards for Grain Farmers Program, licensed grain companies must provide payment security to the Fund to cover money owed to producers for grain deliveries in the event of a licensing default. When a licensed company fails to pay producers for grain deliveries, the Fund uses the security to pay producers for eligible claims. There were 4 companies with producer payment security payouts and 142 eligible claims totalling $20,651,000 for the year ended March 31, 2025. As at March 31, 2025, there were 13 eligible claims remaining to be paid totalling $55,000 (2024 – nil).
12. Related party transactions
In terms of common ownership, the Fund is related to all Government of Canada departments, agencies and Crown corporations. The Fund enters into transactions with these entities at arm's length in the normal course of business and on normal trade terms.
Services provided by other government departments
During the year ended March 31, 2025, the Fund paid occupancy costs and certain professional services to other government departments or agencies. Employer's health insurance plan contributions and employee benefit plans were also provided by and paid to other government departments. Significant services have been recognized in the Fund's statement of operations and net assets as follows:
| 2025 $ | 2024 $ | |
|---|---|---|
| Revenues | (385) | (371) |
| Expenses | ||
| Employer's contribution to employee benefit plans | 10,434 | 10,650 |
| Occupancy costs | 4,813 | 4,768 |
| Leasehold improvements | 2,335 | 871 |
| Professional and special services | 2,155 | 2,373 |
| Transportation and communication | 214 | 224 |
| Other | 199 | 249 |
| Total | 19,765 | 18,764 |
Included in accounts receivable, accounts payable and salaries payable at year-end are the following amounts with related parties:
| 2025 $ | 2024 $ | |
|---|---|---|
| Accounts receivable | 135 | 63 |
| Accounts payable | 1,107 | 660 |
| Employer’s contribution to employee benefit plans payable | 1,249 | 885 |
13. Risk management
Financial instruments that potentially subject the Fund to concentrations of credit risk consist primarily of accounts receivable. For the year ended March 31, 2025, 6 large integrated organizations accounted for $5,052,000 or 82.5% of the Fund's outside parties receivable balances. In 2024, the 6 organizations accounted for $4,419,000 or 79%.
Unaudited Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting
Fiscal year 2024 to 2025
1. Introduction
This document provides unaudited summary information on the measures taken by the Canadian Grain Commission to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.
Detailed information on the department's authority, mandate, and core responsibilities can be found in the Departmental Results Report and the Departmental Plan.
2. Departmental system of internal control over financial reporting
2.1 Internal control management
The Canadian Grain Commission has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. A departmental internal control management framework, approved by the Deputy Head, is in place and is comprised of:
- organizational accountability structures as they relate to internal control management to support sound financial management, including the roles and responsibilities of senior departmental managers for control management in their areas of responsibility;
- values and ethics
- ongoing communication and training on the legislative and policy requirements for sound financial management and control; and
- monitoring and regular updates on internal control management as well as the provision of related assessment results and action plans to the Deputy Head and the Departmental Audit Committee, and senior departmental managers as required.
The Departmental Audit Committee is an independent advisory committee to the Deputy Head. It is responsible to provide advice to the Deputy Head on the adequacy and functioning of the department's risk management, control and governance frameworks and processes.
2.2 Service arrangements relevant to financial statements
The Canadian Grain Commission relies on other departments for processing of certain transactions that are recorded in its financial statements, as follows.
2.2.1 Common service arrangements
- Public Services and Procurement Canada, which administers the payment of salaries and the procurement of goods and services, and provides accommodation services;
- Shared Services Canada, which provides information technology infrastructure services to the Canadian Grain Commission in the areas of email, data centre and network services;
- Department of Justice Canada, which provides legal services; and
- Treasury Board of Canada Secretariat, which provides information on public service insurance and centrally administers payment of the employer's share of contributions toward statutory employee benefit plans
Readers of this annex may refer to the annexes of the above-noted departments for a greater understanding of the systems of internal control over financial reporting related to these specific services.
The Canadian Grain Commission relies on other departments for the processing of certain information or transactions that are recorded in its financial statements, as follows:
2.2.2 Specific arrangements
- Agriculture and Agri-Food Canada provides the Canadian Grain Commission with a PeopleSoft platform to capture and report leave and pay related transactions; and
- Treasury Board of Canada Secretariat provides the Canadian Grain Commission with a SAP financial platform and related reporting tools, including the associated system support and technical infrastructure, to capture and report all financial transactions, and with information technology security services in the area of Sign In Canada.
3. Departmental assessment results for the 2024 to 2025 fiscal year
The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year's rotational plan.
| Previous fiscal year’s rotational ongoing monitoring plan for current fiscal year | Status |
|---|---|
| Financial Close and Reporting | Completed as planned; remedial actions in varying stages of completion. |
The key findings and significant adjustments required from the current fiscal year's assessment activities are summarized below.
3.1 New or significantly amended key controls
In the current fiscal year, there were no new or significantly amended key controls in the existing processes that required a reassessment.
3.2 Ongoing monitoring program
As part of its rotational ongoing monitoring plan, the department completed its reassessment of the financial controls within the financial close and reporting process. For the most part, the key controls that were tested performed as intended and no significant weaknesses were identified; however, some control deficiencies were noted. Remediation strategies to address these deficiencies and strengthen the control environment have been developed and are in varying stage of implementation.
4. Departmental action plan for the next fiscal year and subsequent fiscal years
The Canadian Grain Commission's rotational ongoing monitoring plan over the next 5 fiscal years is shown in the following table. The ongoing monitoring plan is based on:
- an annual validation of risks
- related adjustments to the ongoing monitoring plan as required
| Key control areas | 2025 to 2026 fiscal year | 2026 to 2027 fiscal year | 2027 to 2028 fiscal year | 2028 to 2029 fiscal year | 2029 to 2030 fiscal year |
|---|---|---|---|---|---|
| Entity Level Controls | No | No | Yes | No | No |
| IT General Controls under departmental management | No | Yes | No | No | No |
| Financial Close and Reporting | No | No | No | Yes | No |
| Pay Administration | Yes | No | No | No | Yes |
| Revenues | Yes | No | No | No | No |
| Purchase to Pay | No | Yes | No | No | No |
| Capital Assets | No | Yes | No | No | No |
| Costing – Revenue | No | No | No | Yes | No |
| Investment Planning | No | No | Yes | No | No |
| Budgeting and Planning | No | Yes | No | No | Yes |
| Project Management | No | No | Yes | No | No |
| Costing – Acquisitions/Projects | No | No | Yes | No | No |
| Chief Financial Officer Attestations | No | No | Yes | No | No |
In addition to planned ongoing monitoring work, regular follow-up on past remediation plans will be performed.