Financial Statements for the period ended March 31, 2014

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, 2014, and all information contained in these statements rests with the management of the Canadian Transportation Agency ("the Agency"). 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 Agency’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Agency’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 and through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Agency 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.

The Agency will be subject to a periodic Core Control Audit performed by the Office of the Comptroller General and will use the results of such audits to adhere to the Treasury Board Policy on Internal Control.

In the interim, the Agency has undertaken a risk-based assessment of the system of ICFR for the year ended March 31, 2014, in accordance with the Treasury Board Policy on Internal Control, and the results and action plan are summarized in the annex.

The financial statements of the Agency have not been audited.

Geoffrey Hare
Chairman and Chief Executive Officer

Christine Guérette, CPA, CGA
Chief Financial Officer

Gatineau, Canada

August 15, 2014

Statement of Financial Position (Unaudited) as at March 31 (in thousands of dollars)

20142013
Agency net financial position $(941) $(1,401)
Liabilities
Accounts payable and accrued liabilities (note 4) $1,743 $1,274
Vacation pay and compensatory leave 914 943
Lease obligation for tangible capital assets (note 5) - 10
Employee future benefits (note 6) 1,079 1,591
Total liabilities 3,736 3,818
Financial assets
Due from Consolidated Revenue Fund 1,650 1,199
Accounts receivable and advances (note 7) 211 119
Total gross financial assets 1,861 1,318
Financial assets held on behalf of Government
Accounts receivable and advances (note 7) (82) (41)
Total financial assets held on behalf of Government (82) (41)
Total net financial assets 1,779 1,277
Agency net debt 1,957 2,541
Non-financial assets
Prepaid expenses 48 49
Inventory (note 8) 46 89
Tangible capital assets (note 9) 922 1,002
Total non-financial assets 1,016 1,140

 

 

Contractual obligations (note 10)

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

Geoffrey Hare
Chairman and Chief Executive Officer

Christine Guérette, CPA, CGA
Chief Financial Officer

Gatineau, Canada

August 15, 2014

Statement of Operations and Agency Net Financial Position (Unaudited) for the Year Ended March 31 (in thousands of dollars)

2014
Planned
Results
20142013
Agency net financial position - End of year $(1,291) $(941) $(1,401)
Expenses
Economic regulation $14,319 $13,529 $14,336
Adjudication and alternative dispute resolution 10,136 10,566 9,042
Internal services 8,692 8,464 8,799
Total expenses 33,147 32,559 32,177
Revenues
Revenues from fines 75 279 40
Sales of goods and services - 10 40
Revenues earned on behalf of Government (75) (289) (80)
Total revenues - - -
Net cost of operations before government funding and transfers 33,147 32,559 32,177
Government funding and transfers
Net cash provided by Government 29,971 28,555 28,627
Change in due from Consolidated Revenue Fund (96) 451 (3)
Services provided without charge by other government departments (note 11) 3,806 4,013 4,017
Net cost of operations after government funding and transfers (534) (460) (464)
Agency net financial position - Beginning of year (1,825) (1,401) (1,865)

 

Segmented information (note 12)

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

Statement of Change in Agency Net Debt (Unaudited) for the Year Ended March 31 (in thousands of dollars)

2014
Planned
Results
20142013
Agency net debt - End of year $2,053 $1,957 $2,541
Net cost of operations after government funding and transfers $(534) $(460) $(464)
Change due to tangible capital assets
Acquisition of tangible capital assets 180 241 166
Amortization of tangible capital assets (648) (309) (734)
Net (loss) or gain on disposal of tangible capital assets including adjustments (14) (12) (14)
Total change due to tangible capital assets (482) (80) (582)
Change due to inventories 7 (43) (26)
Change due to prepaid expenses 19 (1) (54)
Net increase (decrease) in Agency net debt (990) (584) (1,126)
Agency net debt - Beginning of year 3,043 2,541 3,667

 

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

Statement of Cash Flows (Unaudited) for the Year Ended March 31 (in thousands of dollars)

20142013
Net cash provided by Government of Canada $28,555 $28,627
Operating activities
Net cost of operations before government funding and transfers $32,559 $32,177
Non-cash items:
Amortization of tangible capital assets (309) (734)
Gain (loss) on disposal of tangible capital assets (12) (10)
Adjustments of tangible capital assets - (4)
Services provided without charge by other government departments (note 11) (4,013) (4,017)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 51 (58)
Increase (decrease) in prepaid expenses (1) (54)
Increase (decrease) in inventory (43) (26)
Decrease (increase) in accounts payable and accrued liabilities (469) 34
Decrease (increase) in vacation pay and compensatory leave 29 (25)
Decrease (increase) in future employee benefits 512 1,165
Cash used in operating activities 28,304 28,448
Capital investment activities:
Acquisitions of tangible capital assets 241 166
Cash used in capital investment activities 241 166
Financing activities:
Lease payments for tangible capital assets 10 13
Cash used in financing activities 10 13

 

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

Notes to the Financial Statements (Unaudited) for the Year Ended March 31 (in thousands of dollars)

1. Authority and objectives

The Canadian Transportation Agency (the Agency) was established on July 1, 1996, under the Canada Transportation Act, (S.C. 1996, c. 10), as the continuation of the National Transportation Agency. Under the Act and related legislation, it has various powers to help implement the federal government’s transportation policy. The Chairman and Chief Executive Officer is appointed by the Governor-in-Council. The Agency pursues one objective: transparent, fair and efficient economic regulation of the federal transportation system.

The Agency is an independent, quasi-judicial tribunal and economic regulator. It makes decisions and determinations on a wide range of matters within the federal transportation system under the authority of Parliament, as set out in the Canada Transportation Act and other legislation.

Our mandate includes:

  • Economic regulation, to provide approvals, issue licences, permits and certificates of fitness, and make decisions on a wide range of matters involving federal air, rail and marine transportation.
  • Dispute resolution, to resolve complaints about federal transportation services, rates, fees and charges.
  • Accessibility, to ensure Canada’s national transportation system is accessible to all persons, particularly those with disabilities.

In meeting its responsibilities, the Agency continuously sets and strives to achieve high performance standards. Education and consultation are integral to the Agency’s effectiveness in carrying out its mandate. The Agency works closely with transportation service users and providers in Canada, and with other directly affected stakeholders. It helps travellers, shippers, carriers, municipalities and others to fully understand not only their rights and obligations under the Canada Transportation Act and other statutes and regulations, but also the Agency’s roles and responsibilities.

When appropriate, the Agency encourages parties to resolve disputes informally before issues escalate and impact the transportation system. The Agency consults broadly on issues that are important to the transportation industry. By remaining open and by listening to all affected parties, the Agency ensures that its decisions are both responsive and responsible.

The Program Alignment Architecture explains how the program and allocation of resources contribute to the Agency's strategic outcome.

The Agency exercises its powers through its members, who are appointed by the Governor-in-Council (GIC): the GIC may appoint up to five full-time Members, including the Chair and Chief Executive Officer (CEO), and the Vice-Chair. The Minister of Transport, Infrastructure and Communities can also appoint up to three temporary Members.

The Chair and CEO is accountable for the Agency’s three programs. The Vice-Chair replaces the Chair and CEO during his absence. All Agency Members, as independent decision-makers, are accountable for making quasi-judicial decisions on matters before the Agency.

This is achieved through three programs:

ProgramExpected Result
Economic Regulation

Economic and other interests of transportation users, service providers and other affected parties are protected through timely and effective intervention.

Service providers (air, rail and marine) comply with regulatory requirements.

The Canadian National Railway Company (CN) and the Canadian Pacific Railway Company (CP) are provided with the information required to ensure they do not exceed the maximum grain revenue entitlements for the shipment of Western grain.

Adjudication and Alternative Dispute Resolution Access to a specialized dispute resolution system that is transparent, fair and timely.
Internal Services Support the needs of programs and other corporate obligations of the Agency.

 

2. Summary of significant accounting policies

These financial statements have been prepared using the Government'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 Agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Agency 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 Agency 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 Statement of Operations and Agency Net Financial Position are the amounts reported in the future-oriented financial statements included in the 2013-14 Report on Plans and Priorities.

b) Net Cash Provided by Government – The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF, and all cash disbursements made by the Agency 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 or to 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 Agency is entitled to draw from the CRF without further appropriations to discharge its liabilities.

d) Revenues:

  • Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
  • Other revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
  • Revenues that are non-respendable are not available to discharge the Agency's liabilities. While the Chairman and Chief executive officer is expected to maintain accounting control, he or she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented in reduction of the entity's gross revenues.

e) Expenses – Expenses are recorded on the accrual basis:

  • Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, legal services and workers' compensation are recorded as operating expenses at their estimated cost.

f) Employee future benefits

  1. Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the total Agency obligation to the Plan. The Agency’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognised in the financial statements of the Government of Canada, as the Plan’s sponsor.
  2. Severance benefits: Employees entitled to severance benefits under labour contracts or conditions of employment earn these benefits as services necessary to earn them are rendered. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

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

h) Inventory –Inventory consists of brochures held for future program delivery and not intended for resale. Inventory is valued at cost using the average cost method. When there is no longer any service potential, obsolete inventory is written off.

i) Tangible capital assets – All tangible capital assets and leasehold improvements are recorded at their acquisition cost (refer to the following table for the initial cost threshold). All capital lease contracts have expired in 2014.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the capital asset as identified in the table below:

Asset ClassAmortization
Period
Threshold
(initial cost
equal/or more than)
(in thousands
of dollars)
Leased tangible capital assets Over term of
lease/useful life
$10
Machinery and equipment 7 years $10
Computer hardware 5 years $10
Computer software 3 years $10
Furniture 10 years $10
Vehicles 7 years $10

 

j) Measurement uncertainty – The preparation of these financial statements 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 future 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

The Agency receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Agency Net Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the Agency 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

20142013
Current year authorities used $28,977 $28,701
Net cost of operations before government funding and transfers $32,559 $32,177
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (309) (734)
Gain (loss) on disposal of tangible capital assets (12) (10)
Adjustments of tangible capital assets - (4)
Services provided without charge by other federal government departments and agencies (4,013) (4,017)
Decrease (increase) in vacation pay and compensatory leave 29 (25)
Decrease in employee future benefits 512 1,165
Bad debt expense - (4)
Refunds of prior years' expenditures 4 54
Total items affecting net cost of operations but not affecting authorities (3,789) (3,575)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets 241 166
Decrease in lease obligations for tangible capital assets 10 13
Increase (decrease) in inventory (43) (26)
Increase (decrease) in prepaid expenses (1) (54)
Total items not affecting net cost of operations but affecting authorities 207 99

 

b) Authorities provided and used

20142013
Current year authorities used $28,977 $28,701
Authorities provided:
Vote 25 - Operating expenditures $26,663 $26,401
Statutory amounts 3,415 3,411
Less:
Lapsed: Operating (1,101) (1,111)

 

With the aim of reducing government expenditures on travel, Treasury Board has established in Budget 2013 frozen allotments in departmental votes. The Agency lapse amount of $1,101 thousand for 2013-14 includes a frozen allotment of $8 thousand.

4. Accounts payable and accrued liabilities

The following table presents details of the Agency’s accounts payable and accrued liabilities:

20142013
Total accounts payable and accrued liabilities $1,743 $1,274
Accounts payable - Other government departments and agencies $72 $36
Accounts payable - External parties 939 -
Total accounts payable 1,011 36
Accrued liabilities 732 1,238

 

5. Lease obligation for tangible capital assets

The Agency had entered into capital lease contracts for photocopiers with a cost of $62 thousand and accumulated amortization of $62 thousand as at March 31, 2014 ($62 thousand and $53 thousand respectively as at March 31, 2013). All lease contracts for capital assets have expired in 2014.

Lease obligation for tangible capital assets
20142013
Balance of obligations under leased tangible capital assets $ - $10
2014 - $10
Total future minimum lease payments - 10
Less: imputed interest (2.49%) - -

 

6. Employee future benefits

a) Pension benefits

The Agency'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 the Agency contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Canada's 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 2013-2014 expense amounts to $3,415 ($3,411 in 2012-2013).For Group 1 members, the expense represents approximately 1.6 times (1.7 times in 2012-2013) the employee contributions and, for Group 2 members, approximately 1.5 times (1.6 times in 2012-2013) the employee contributions.

The Agency'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

The Agency 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. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

20142013
Accrued benefit obligation-End of year $1,079 $1,591
Accrued benefit obligation-Beginning of year $1,591 $2,756
Expense (adjustment) for the year 491 (229)
Benefits paid during the year (1,003) (936)

 

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 benefit obligation.

7. Accounts receivable and advances

The following table presents details of the Agency’s accounts receivable and advances balances:

20142013
Net accounts receivable $129 $78
Receivables - Other government departments and agencies $129 $75
Receivables - External parties 82 44
Employee advances - -
Gross accounts receivable 211 119
Accounts receivable held on behalf of Government (82) (41)

 

8. Inventory

The following table presents details of the inventory, measured at cost using the average cost method.

20142013
Brochures $46 $89

 

The cost of consumed inventory recognized as an expense in the Statement of Operations and Agency Net Financial Position is $43 thousand in 2013-2014 (-$26 thousand in 2012-2013).

9. Tangible capital assets

Cost
Capital Asset ClassOpening BalanceAcquisitionsAdjustmentsDisposals and
Write-offs
Closing
Balance
Machinery and equipment $106 $106
Computer hardware 1,377 34 14 1,397
Computer software 3,697 168 3,865
Furniture 649 15 19 645
Vehicles (see table note below) 31 24 55
Leased tangible capital assets 62 62
Total $5,922 $241 $- $33 $6,130
Table Note: The Agency has acquired a new vehicle in 2013-14 and has sold and disposed of the old vehicle on April 2014, after the fiscal year-end.

 

Accumulated Amortization
Capital Asset ClassOpening
Balance
AmortizationAdjustmentsDisposals and
Write-offs
Closing
Balance
Machinery and equipment $106 $106
Computer hardware 829 188 10 1,007
Computer software 3,532 68 3,600
Furniture 377 40 11 406
Vehicles (see table note below) 23 4 27
Leased tangible capital assets 53 9 62
Total $4,920 $309 $- $21 $5,208
Table Note: The Agency has acquired a new vehicle in 2013-14 and has sold and disposed of the old vehicle on April 2014, after the fiscal year-end.

 

Net Book Value
Capital Asset Class20142013
Machinery and equipment $- $-
Computer hardware 390 548
Computer software 265 165
Furniture 239 272
Vehicles (see table note below) 28 8
Leased tangible capital assets - 9
Total $922 $1,002
Table Note: The Agency has acquired a new vehicle in 2013-14 and has sold and disposed of the old vehicle on April 2014, after the fiscal year-end.

 

10. Contractual obligations

The nature of the Agency’s activities can result in some large multi-year contracts and obligations whereby the Agency will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

20152016201720182019
and
thereafter
Total
Total $1,080 $970 $825 $825 $825 $4,525
Professional and special services $734 $624 $479 $479 $479 $2,795
Other goods and services 168 168 168 168 168 840
Operating leases and rental of storage 45 45 45 45 45 225
Software maintenance agreements 133 133 133 133 133 665

 

11. Related party transactions

The Agency is related as a result of common ownership to all government departments, agencies, and Crown Corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Agency 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, the Agency received services without charge from certain common service organizations, related to accommodation, legal services, 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 Statement of Operations and Agency Net Financial Position as follows:

20142013
Total $4,013 $4,017
Accommodation $2,198 $2,096
Employer's contribution to the health and dental insurance plans 1,778 1,881
Legal services 24 31
Worker's compensation 13 9

 

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 Works and Government Services Canada and audit services provided by the Office of the Auditor General are not included in the Agency's Statement of Operations and Agency Net Financial Position.

b) Other transactions with related parties

20142013
Expenses - Other government departments and agencies $4,813 $4,570
Revenues - Other government departments and agencies $- $3

 

Expenses and revenues disclosed in (b) exclude common services provided without charges, which are already disclosed in (a).

12. Segmented information

Presentation by segment is based on the Agency's program alignment architecture. 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 and revenues generated for the main programs, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Economic
Regulation
Adjudication
and Alternative
Dispute
Resolution
Internal
Services
2014
Total
2013
Total
Operating expenses
Salaries and employee benefits $10,764 $8,599 $6,763 $26,126 $25,478
Accommodation 940 671 587 2,198 2,096
Professional and special services 800 594 518 1,912 1,562
Rentals 240 215 177 632 604
Transportation and telecommunication 257 115 101 473 582
Information 166 156 107 429 403
Amortization of tangible capital assets 150 88 71 309 734
Machinery and equipment 127 64 47 238 415
Utilities, materials and supplies 61 38 55 154 225
Repair and maintenance 20 20 29 69 45
Other 4 5 12 21 33
Total expenses 13,529 10,566 8,464 32,559 32,177
Revenues
Revenues from fines 279 - - 279 40
Sales of goods and services 10 - - 10 40
Revenues earned on behalf of Government (289) - - (289) (80)
Total revenues - - - - -
Net cost of operations before government funding and transfers $13,529 $10,566 $8,464 $32,559 $32,177

 

Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting of the Canadian Transportation Agency for the Fiscal Year 2013-2014 (Unaudited)

1. Introduction

In support of an effective system of internal control, the Canadian Transportation Agency (the Agency) annually assesses the performance of its financial controls to ensure:

  • financial arrangements or contracts are entered into only when sufficient funding is available;
  • payments for goods and services are made only when the goods or services are received or the conditions of contracts or other arrangements have been satisfied; and
  • payments have been properly authorized.

During the fiscal year 2013-2014, the Agency has completed the documentation and assessment of its internal controls.The Agency is scheduled in 2014-15 for the Core Control Audit performed by the Office of the Comptroller General.

2. Assessment results during fiscal year 2013-14

The Agency conducted a risk assessment analysis of its Internal Control over Financial Reporting (ICFR) in 2013-14 in order to comply with the Treasury Board's Policy on Internal Control.Based on this assessment, the highest risk areas requiring attention have been identified, documented and addressed during the current fiscal year.

3. Assessment Plan

In 2014-15, the Agency will establish an ongoing monitoring process for testing key controls. The Agency will continue to periodically monitor the performance of its system of Internal Control over Financial Reporting (ICFR) with a focus on the core controls related to financial transactions and the highest risk areas.

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