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Archived - Annual Report of Canada Pension Plan 2002-2003
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Management's Responsibility for Financial Statements
The financial statements of the Canada Pension Plan have been prepared by management of Human Resources Development Canada in accordance with the Canadian generally accepted accounting principles.
Management is responsible for the integrity and objectivity of the data in these financial statements, including the amounts which must, of necessity, be based on best estimates and judgements. The financial information presented throughout the Annual Report is consistent with the financial statements.
In support of its responsibility, management has developed and maintains books of account, financial and management controls, information systems and management practices. These are designed to provide reasonable assurance as to the reliability of the financial information, and to ensure that the transactions are in accordance with the Canada Pension Plan and regulations, as well as the Financial Administration Act and regulations.
The Auditor General of Canada, the external auditor of the Canada Pension Plan, has conducted an independent audit of the financial statements in accordance with Canadian generally accepted auditing standards and has reported to the Minister of Human Resources Development Canada.
AUDITOR'S REPORT
Assistant Deputy Minister
Financial and Administrative Services
Janet Milne
Associate Deputy Minister
Maryantonett Flumian
October 1st 2003
To the Minister of Human Resources Development Canada
I have audited the statement of net assets of the Canada Pension Plan as at March 31, 2003 and the statement of changes in net assets and cash flow for the year then ended. These financial statements are the responsibility of the management of Human Resources Development Canada. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In my opinion, these financial statements present fairly, in all material respects, the financial position of the Canada Pension Plan as at March 31, 2003 and the changes in its net assets and its cash flow for the year then ended in accordance with Canadian generally accepted accounting principles.
Sheila Fraser, FCA
Auditor General of Canada
Ottawa, Canada
October 1st, 2003
| 2003 | 2002 Restated (Note 4) | ||
|---|---|---|---|
| Assets | |||
| Investments | |||
| CPP Investment Fund - at cost (Note 5) | |||
| Provincial and Territorial bonds | 23,204 | 24,890 |
|
| Canada bonds | 3,369 | 3,386 | |
| CPP Investment Board - at fair value (Note 6) | 17,453 | 14,289 | |
| Cash | |||
| Deposit with Receiver General for Canada | 7,093 | 6,770 | |
| Receivables | |||
| Contributions | 1,631 | 1,378 | |
| Accrued interest | 939 | 1,030 | |
| Régime des rentes du Québec | 66 | 25 | |
| Beneficiaries (Note 7) | 49 | 43 | |
| 53,804 | 51,811 | ||
| Liabilities | |||
| Accounts payable | 74 | 47 | |
| Accrued pensions and benefits | 55 | 51 | |
| CPP Investment Board's liabilities, net of its other assets | 2 | 4 | |
| 131 | 102 | ||
| Net Assets | 53,673 | 51,709 | |
| Net Assets, represented by: | |||
| Canada Pension Plan Investment Fund | 26,573 | 28,276 | |
| Accumulated transfers to Canada Pension Plan Investment Board | 21,690 | 14,372 | |
| Accumulated net loss from Investment Board's operations | (4,239) | (87) | |
| Canada Pension Plan Account (Note 8) | 7,093 | 6,770 | |
| CPP receivables, net of liabilities | 2,556 | 2,378 | |
| Net Assets | 53,673 | 51,709 | |
The accompanying notes are an integral part of these financial statements.
Approved by Human Resources Development Canada:
| 2003 | 2002 Restated (Note 4) | ||
|---|---|---|---|
| Net assets, beginning of year | 51,709 | 46,014 | |
| Increase in assets | |||
| Contributions (Note 9) | 25,203 | 22,991 | |
| Investment Income / (loss) (Note 10) | (1,242) | 3,565 | |
| 23,961 | 26,556 | ||
| Decrease in assets | |||
| Pensions and Benefits | |||
| Retirement | 15,071 | 14,270 | |
| Survivors | 3,071 | 2,933 | |
| Disability | 2,779 | 2,641 | |
| Disabled Contributor's Child | 251 | 242 | |
| Death | 234 | 227 | |
| Orphan | 210 | 205 | |
| Net overpayments | (41) | (28) | |
| 21,575 | 20,490 | ||
| Administration costs (Note 11) | 422 | 371 | |
| 21,997 | 20,861 | ||
| Increase in net assets | 1,964 | 5,695 | |
| Net assets, end of year | 53,673 | 51,709 | |
The accompanying notes are an integral part of these financial statements.
| 2003 | 2002 | ||
|---|---|---|---|
| Cash Flow Provided by Operating Activities | |||
| Cash Receipts: | |||
| Contributions | 24,950 | 23,354 | |
| Interest from CPP Investment Fund | 2,839 | 3,166 | |
| Interest on Deposit with Receiver General for Canada | 163 | 202 | |
| Recoveries from Régime des rentes du Québec | 192 | 214 | |
| Recoveries from beneficiaries | 37 | 32 | |
| 28,181 | 26,968 | ||
| Cash Payments: | |||
| Pensions and Benefits | (21,613) | (20,516) | |
| Repayments to Régime des rentes du Québec | (235) | (217) | |
| Administration costs | (395) | (375) | |
| (22,243) | (21,108) | ||
| 5,938 | 5,860 | ||
| Cash Flow From (Used in) Investing Activities | |||
| Transfers to CPP Investment Board | (7,318) | (6,826) | |
| Disposals of bonds - CPP Investment Fund | 2,383 | 2,369 | |
| Reinvestments in bonds - CPP Investment Fund | (680) | (1,053) | |
| (5,615) | (5,510) | ||
| Net increase in the Deposit with Receiver General for Canada | 323 | 350 | |
| Deposit with Receiver General for Canada, beginning of year | 6,770 | 6,420 | |
| Deposit with Receiver General for Canada, end of year | 7,093 | 6,770 | |
The accompanying notes are an integral part of these financial statements.