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Financial statements for the year ended March 31, 2023

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, 2023, and all information contained in these statements rests with the management of the Office of the Commissioner of Lobbying (OCL). These financial statements have been prepared by management using the Government of Canada'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 OCL’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the OCL’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 (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 the OCL and 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.

A risk-based assessment of the system of ICFR for the year ended March 31, 2023 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex of the 2022-23 Departmental Results Report.

The effectiveness and adequacy of the OCL's system of internal control is reviewed by an independent Audit and Evaluation Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends for approval the financial statements to the Commissioner of Lobbying.

The Auditor General of Canada, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the OCL which does not include an audit opinion on the annual assessment of the effectiveness of the OCL's internal controls over financial reporting.

Original signed

Nancy Bélanger
Commissioner of Lobbying
Charles Dutrisac, CPA, CMA, MBA
Director of Finance and Chief Financial Officer

Ottawa, Canada


Independent auditor's report

To the Speaker of the House of Commons and the Speaker of the Senate

Report on the audit of the financial statements

Opinion

We have audited the financial statements of the Office of the Commissioner of Lobbying (the OCL), which comprise the statement of financial position as at 31 March 2023, and the statement of operations and net financial position, statement of change in net debt and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the OCL as at 31 March 2023, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

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 are independent of the OCL in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, 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 OCL’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 OCL or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the OCL’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 OCL’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 OCL’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 OCL to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

Report on compliance with specified authorities

Opinion

In conjunction with the audit of the financial statements, we have audited transactions of the Office of the Commissioner of Lobbying coming to our notice for compliance with specified authorities. The specified authorities against which compliance was audited are the Financial Administration Act and regulations, and the Lobbying Act.

In our opinion, the transactions of the Office of the Commissioner of Lobbying that came to our notice during the audit of the financial statements have complied, in all material respects, with the specified authorities referred to above.

Responsibilities of management for compliance with specified authorities

Management is responsible for the Office of the Commissioner of Lobbying’s compliance with the specified authorities named above, and for such internal control as management determines is necessary to enable the Office of the Commissioner of Lobbying to comply with the specified authorities.

Auditor's responsibilities for the audit of compliance with specified authorities

Our audit responsibilities include planning and performing procedures to provide an audit opinion and reporting on whether the transactions coming to our notice during the audit of the financial statements are in compliance with the specified authorities referred to above.

Riowen Yves Abgrall, CPA, CA
Principal
for the Auditor General of Canada

Ottawa, Canada
18 September 2023

Statement of financial position

Statement of financial position
As at March 31
(in dollars) 2023 2022
Liabilities
Accounts payable and accrued liabilities (note 4) 373,602 320,769
Vacation pay and other leaves 183,851 209,700
Employee future benefits (note 5) 32,699 31,311
Total liabilities 590,152 561,780
Financial assets
Due from the Consolidated Revenue Fund 265,817 232,890
Accounts receivable and advances (note 6) 127,506 107,455
Total financial assets 393,323 340,345
Net debt 196,829 221,435
Non-financial assets
Prepaid expenses 12,255 7,184
Tangible capital assets (note 7) 1,605,481 1,726,880
Total non-financial assets 1,617,736 1,734,064
Net financial position 1,420,907 1,512,629

Contingent liabilities (note 8)

Contractual obligations (note 9)

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

Nancy Bélanger
Commissioner of Lobbying
Charles Dutrisac, CPA, CMA, MBA
Director of Finance and Chief Financial Officer

Ottawa, Canada
September 18, 2023

Statement of operations and net financial position
For the year ended March 31
(in dollars) Planned
Results
(note 2)
2023
2023 2022
Expenses
Regulation of lobbying 4,948,430 4,044,441 3,424,974
Internal Services 1,387,364 1,870,649 1,692,886
Net cost of operations before government funding 6,335,794 5,915,090 5,117,860
Government funding and Transfers
Net cash provided by Government of Canada 5,418,841 5,155,022 4,697,581
Change in due from Consolidated Revenue Fund 20,705 32,927 (107,483)
Services provided without charge by other government departments (note 10) 732,759 634,717 606,373
Transfer of assets from another government department - 702 -
Net cost (revenue) of operations after government funding 163,489 91,722 (78,611)
Net financial position — Beginning of year 1,370,293 1,512,629 1,434,018
Net financial position — End of year 1,206,804 1,420,907 1,512,629

Segmented information (note 11)

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

Statement of change in net debt
For the year ended March 31
(in dollars) Planned
Results
(note 2)
2023
2023 2022
Net cost of operations after government funding 163,489 91,722 (78,611)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7) 235,000 351,074 496,519
Amortization of tangible capital assets (note 7) (373,785) (472,473) (412,564)
Total change due to tangible capital assets (138,785) (121,399) 83,955
Change due to prepaid expenses - 5,071 1,808
Net increase (decrease) in net debt 24,704 (24,606) 7,152
Net debt — Beginning of year 200,271 221,435 214,283
Net debt — End of year 224,975 196,829 221,435

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

Statement of cash flows
For the year ended March 31
(in dollars) 2023 2022
Operating activities
Net cost of operations before government funding 5,915,090 5,117,860
Non-cash items:
Amortization of tangible capital assets (note 7) (472,473) (412,564)
Services provided without charge by other government departments (note 10) (634,717) (606,373)
Variations in Statement of Financial Position:
Increase in accounts receivable and advances 20,051 73,576
Increase in prepaid expenses 5,071 1,808
(Increase) decrease in accounts payable and accrued liabilities (notes 4, 7) (75,357) 36,860
Decrease in vacation pay and other leaves 25,849 8,704
Increase in employee future benefits (1,388) (20,176)
Transfer of assets (from) another government department (702) -
Cash used in operating activities 4,781,424 4,199,695
Capital investing activities
Acquisition of tangible capital assets (note 7) 373,598 497,886
Cash used in capital investing activities 373,598 497,886
Net cash provided by Government of Canada 5,155,022 4,697,581

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

Notes to the financial statements for the year ended March 31

1. Authority and objectives

The mandate of the Office of the Commissioner of Lobbying (OCL) is to support the Commissioner in administering the Lobbying Act (the Act) and to ensure compliance with the Lobbyists' Code of Conduct (the Code).

Regulation of lobbying

The purpose of the Lobbying Act and the Lobbyists’ Code of Conduct is to provide a regime for the transparent and ethical lobbying of public office holders. This regime contributes to public confidence in the integrity of decision making by public office holders. The mandate of the Commissioner of Lobbying is to establish and maintain the Registry of Lobbyists, ensure compliance with the Act and the Code, and develop and implement educational programs to foster awareness about the Act and the Code.

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal Services include only those activities and resources that apply across an organization and not to those provided to a specific program, regardless of the Internal Services delivery model in a department. The groups of activities are Management and Oversight Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

2. Summary of significant accounting policies

These financial statements have been prepared using the Government of Canada's accounting policies 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

The OCL is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the OCL 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 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 section of the Statement of Operations and Net Financial Position are the amounts reported in the future-oriented Statement of Operations included in the 2022-23 Departmental Plan. The planned results amounts in the Government funding section of the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt were prepared for internal management purposes and have not been previously published.

Liquidity risk is the risk that the OCL will encounter difficulty in meeting its obligations associated with financial liabilities. The OCL's objective for managing liquidity risk is to manage operations and cash expenditures within the appropriation authorized by Parliament or allotment limits approved by the Treasury Board.

Each year, the OCL presents information on planned expenditures to Parliament through the tabling of Estimates publications. These estimates result in the introduction of supply bills (which, once passed into legislation, become appropriation acts) in accordance with the reporting cycle for government expenditures. The OCL exercises expenditure initiation processes such that unencumbered balances of budget allotments and appropriations are monitored and reported on a regular basis to help ensure sufficient authority remains for the entire period and appropriations are not exceeded.

Consistent with Section 32 of the Financial Administration Act, the OCL’s policy to manage liquidity risk is that no contract or other arrangement providing for a payment shall be entered into with respect to any program for which there is an appropriation by Parliament or an item included in estimates then before the House of Commons to which the payment will be charged unless there is a sufficient unencumbered balance available out of the appropriation or item to discharge any debt that, under the contract or other arrangement, will be incurred during the fiscal year in which the contract or other arrangement is entered into.

The OCL’s risk exposure and its objectives, policies and processes to manage and measure this risk did not change significantly from the prior year.

(b) Net cash provided by Government of Canada

The OCL operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the OCL is deposited to the CRF, and all cash disbursements made by the OCL are paid from the CRF. The net cash provided by Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government of Canada.

(c) Due from the Consolidated Revenue Fund

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 the OCL is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Expenses

  • Vacation pay and other leaves are accrued as the benefits are earned by employees under their respective terms of employment.
  • Expenses are recorded on the accrual basis.

(e) Employee future benefits

  • Pension benefits: Eligible employees participate in the Public Service Pension Plan (Plan), a multiemployer pension plan administered by the Government of Canada. The OCL's contributions to the Plan are charged to expenses in the year incurred and represent the total OCL obligation to the Plan. The 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.
  • Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. Due to the size of the OCL, the remaining obligation for employees who did not withdraw benefits is calculated using employee specific information.

(f) Accounts receivable

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

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The OCL is not exposed to significant credit risk. Accounts receivable are due on demand. The majority of accounts receivable are due from other Government of Canada departments and organizations where there is minimal potential risk of loss. The maximum exposure the OCL has to credit risk is equal to the carrying value of its accounts receivable.

(g) 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 if an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(h) Tangible capital assets

All tangible capital assets are recorded at their acquisition cost. The OCL does not capitalize intangible assets. Amortization of tangible capital assets is done on a straight-line basis as indicated below.

Tangible capital assets
Asset Class Amortization Period
Computer software 5 years
Informatics hardware 3 to 6 years
Furniture and fixtures 5 to 10 years
Leasehold improvements Lesser of the remaining term of the lease or useful life of the improvement

Assets under development are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

(i) Related Party Transactions

Inter-entity transactions

The OCL is related, in terms of common ownership, to all government departments, organizations, and Crown corporations. The OCL enters into transactions with these entities in the normal course of business, which are measured at their carrying amount, except for the following:

  1. Inter-entity transactions are measured at the exchange amount when undertaken on similar terms and conditions to those adopted if the entities were dealing at arm’s length, or where costs provided are recovered.
  2. Goods or services received without charge between commonly controlled entities, when used in the normal course of the operations and would otherwise have been purchased, are recorded as revenues and expenses at the carrying amount. The Government also uses central agencies and common service organizations so that one department performs services for all other departments and organizations 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 the OCL's Statement of Operations and Net Financial Position.
Other related party transactions

Related parties also include key management personnel (KMP) having authority and responsibility for planning, directing and controlling the activities of the OCL, as well as their close family members. The OCL has defined its KMP to be the Commissioner, the Executive Director of Corporate Services and the Chief Financial Officer. These related party transactions are recorded at the exchange amount.

(j) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the OCL's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are the liability for vacation pay and other leave 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

The OCL receives its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the 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 authorities used
(in dollars) 2023 2022
Net cost of operations before government funding 5,915,090 5,117,860
Adjustments for items affecting net cost of operations but not affecting authorities:
Add (Less):
Services provided without charge by other government departments (notes 7, 10) (634,717) (606,373)
Amortization of tangible capital assets (note 7) (472,473) (412,564)
Decrease in vacation pay and other leaves 25,849 8,704
Increase in employee future benefits (1,388) (20,176)
Accrued liabilities not charged to authorities (4,496) 22,149
Adjustments to previous year's expenses 18,003 44,233
Refund of program expenditures - 4,521
(1,069,222) (959,506)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets (note 7) 351,074 496,519
Employee advances and overpayments 9,769 4,685
Increase in prepaid expenses 5,071 2,005
365,914 503,209
Current year authorities used 5,211,782 4,661,563
(b) Reconciliation of authorities provided and used
(in dollars) 2023 2022
Authorities provided:
Vote 1 — Program expenditures 5,285,964 4,936,550
Statutory — Contributions to employee benefit plans 446,410 380,063
Less:
Lapsed: Operating (520,592) (655,050)
Current year authorities used 5,211,782 4,661,563

4. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities are measured at cost, the majority of which are due within three months of year-end.

The following table presents details of the OCL's accounts payable and accrued liabilities:

Accounts payable and accrued liabilities
(in dollars) 2023 2022
Other government departments and organizations 13,377 29,910
External parties 93,643 106,419
107,020 136,329
Accrued liabilities 266,582 184,440
373,602 320,769

5. Employee future benefits

(a) Pension benefits

The OCL's employees participate in the Public Service Pension Plan (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 % per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the OCL 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 – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2022-23 expense amounts to $291,639 ($256,770 in 2021-22). For Group 1 members, the expense represents approximately 1.02 times (1.01 times in 2021-22) the employee contributions and, for Group 2 members, approximately 1 time (1 time in 2021-22) the employee contributions.

The OCL's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the consolidated financial statements of the Government of Canada, as the Plan’s sponsor.

(b) Severance benefits

Severance benefits provided to the OCL's employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. As at March 31, 2023, substantially all settlements for immediate cash out were completed and the remaining obligation will be disbursed upon departure from the public service. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities. As at March 31, 2023, the accrued severance benefits amounts to $32,699 ($31,311 in 2021-22).

6. Accounts receivable and advances

The following table presents details of the OCL's accounts receivable and advances balances:

Accounts receivable and advances
(in dollars) 2023 2022
Other government departments and organizations 99,056 85,988
External parties 19,720 19,575
Employee advances and overpayments 8,730 1,892
Gross accounts receivable 127,506 107,455

7. Tangible capital assets

Costs of tangible capital assets
Cost
Capital Asset Class
(in dollars)
Opening Balance Acquisitions Disposals, Write-Offs and Transfers Closing
Balance
Computer software 4,548,894 264,078 4,812,972
Informatics hardware 373,155 81,701 (47,817) 407,040
Furniture and fixtures 267,554 5,295 272,849
Leasehold improvements 623,682 36,714 660,396
Assets under development 36,714 (36,714)
Total: Cost 5,849,999 351,074 (47,817) 6,153,257
Accumulated Amortization of tangible capital assets
Accumulated Amortization
Capital Asset Class
(in dollars)
Opening Balance Amortization Disposals, Write-Offs and Transfers Closing Balance
Computer software 3,676,715 296,700 3,973,415
Informatics hardware 148,845 65,058 (47,817) 166,086
Furniture and fixtures 120,849 43,596 164,446
Leasehold improvements 176,710 67,119 243,829
Total: Accumulated Amortization 4,123,119 472,473 (47,817) 4,547,776
Net book value of tangible capital assets
Net Book Value
(in dollars) 2023 2022
Computer software 839,557 872,179
Informatics hardware 240,954 224,310
Furniture and fixtures 108,403 146,705
Leasehold improvements 416,567 446,972
Assets under development 36,714
Total: Net Book Value 1,605,481 1,726,880

The “Acquisition of tangible capital assets” and the “Increase in accounts payable and accrued liabilities”, presented in the Statement of Cash Flows as $373,598 and $75,357 respectively, excludes $34,492 in relation to acquisitions of tangible capital assets in 2022-23 that remain to be paid as at March 31, 2023. On March 31, 2022, this amount was $57,015 and it was paid in 2022-23. This amount is included in the March 31, 2023 Statement of Cash Flows.

8. Contingent liabilities

In the normal course of its operations, the OCL may face legal challenges with regard to a decision made by the Commissioner or for any other reasons. Some of these legal actions may result in actual liabilities when one or more future events occur. To the extent that the future event is likely to occur, and a reasonable estimate of the loss can be made, a liability is accrued and an expense recorded in the financial statements. No contingent liabilities are recognized in the OCL’s financial statements for the fiscal year ended March 31, 2023, and there are no claims outstanding as at March 31, 2023.

9. Contractual obligations

The nature of the OCL's activities can result in some multi-year contracts and obligations whereby the OCL will be obligated to make future payments when the goods or services are received. These obligations include service contracts and equipment rental. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Contractual Obligations
(in dollars) Related Parties Acquisitions of
goods and services
Operating
leases
Total
2024 424,292 254,803 2,196 681,291
2025 37,872 32,038 366 70,276
2026 27,420 25,632 53,052
2027 1,300 1,300
2028 and thereafter

10. Related party transactions

(a) Services provided without charge by other government departments

During the year, the OCL received services without charge from other government departments. These services provided without charge have been recorded in the OCL's Statement of Operations and Net Financial Position as follows:

Services provided without charge by other government departments
(in dollars) 2023 2022
Accommodation 207,866 189,602
Employer's contribution to the health and dental insurance plans 272,851 241,271
Audit services 154,000 175,500
634,717 606,373

(b) Other transactions with related parties

The OCL incurred expenses of $1,092,029 in 2022-23 ($902,548 in 2021-22) from transactions in the normal course of business with other government departments, organizations and Crown corporations. Included in these transactions are the contributions to the employee benefit plans (EBP) and the shared service agreements OCL has with other government departments related to the provision of Finance, Human Resources, Administration and Information Technology services. The expenses for the EBP are $446,410 in 2022-23 ($380,063 in 2021-22) and the expenses for the shared services agreements are $572,925 in 2022-23 ($507,289 in 2021-22). These expenses exclude services received without charge, which are already disclosed in a). Contractual obligations with related parties, as shown in note 9 above, amount to a total of $490,884 over the next five years. No transactions outside the normal course of business involving key management personnel or their close family members were identified in 2022-23 ($0 in 2021-22).

Related party transactions
(in dollars) 2023 2022
Accounts receivable 99,056 85,988
Accounts payable 13,377 29,910
Expenses 1,092,029 902,548
Tangible capital assets acquisitions - 9,369

11. Segmented information

Presentation by segment is based on the OCL's core responsibilities. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred for the main core responsibilities, by major expense object. The segment results for the period are as follows:

Segmented Information
(in dollars) Regulation of lobbying Internal services 2023 2022
Operating Expenses
Salaries and employee benefits 3,212,230 592,957 3,805,187 3,253,088
Professional and special services 306,922 904,465 1,211,387 1,068,156
Amortization of tangible capital assets
259,581
212,892 472,473 412,564
Accommodation 170,072 37,794 207,866 201,871
Rental 729 72,052 72,781 58,263
Telecommunications services 30,273 24,327 54,600 46,742
Information Services 42,616 7,563 50,179 25,359
Travel 15,425 40 15,465 2,519
Furniture and equipment 11,091 11,091 31,482
Utilities, materials and supplies 6,593 1,673 8,266 11,289
Repair and maintenance 5,795 5,795 6,527
Net cost of operations 4,044,441 1,870,649 5,915,090 5,117,860

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