Introduction

This volume of the Canada Customs and Revenue Agency's (CCRA's) Annual Report to Parliament contains audited financial statements for the CCRA's operations and the activities it administers, as well as unaudited supplementary financial information relating to Parliamentary appropriations. The audited financial statements pertaining to the operations and activities of the CCRA present the financial information in accordance with the accounting principles of the Government of Canada.

The activities of the CCRA have been divided into two sets of financial statements: Agency Activities and Administered Activities. The statements for Agency Activities include the operational revenues and expenses that the CCRA controls and utilizes in running the organization. The Administered Activities statements provide information on the revenues and expenses that the CCRA manages on behalf of the federal government, provinces, territories, First Nations, or other groups or organizations. The Auditor General of Canada provides audit opinions on these two sets of financial statements. This volume also contains management discussions on the CCRA's operations and the activities it administers.

The unaudited supplementary financial information relating to the CCRA's resource management performance for purposes of reporting to Parliament on the use of its annual appropriations are prepared on a modified cash basis of accounting, which does not parallel the financial statement reporting. This appropriation basis of accounting does not include, for example, amortization or certain accrual accounting adjustments for services provided by other government departments that are part of the audited financial statement of operations. Note 3 on page 2-17 reconciles these two accounting methods. The opinions of the Auditor General on the financial statements do not extend to this supplementary financial information.

The CCRA maintains financial and management control systems and practices that provide reasonable assurance the information presented constitutes a fair and frank accounting of how well the CCRA is performing against its objectives. To ensure a high level of assurance, Corporate Audit and Evaluation Directorate conducts independent reviews of various aspects of the CCRA's performance information. In addition, the Board of Management's Finance Committee, which oversees management's responsibilities for maintaining adequate internal control and financial/performance reporting systems, meets regularly with internal and external auditors. The Board of Management recommends the Annual Report to the Minister for approval.

Date modified:

2004-10-28