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Archived - Annual Report of Canada Pension Plan 2003-2004
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Financial Statements for the year ended March 31, 2004
Management's Responsibility for Financial Statements
The financial statements of the Canada Pension Plan have been prepared by management of Social 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 responsibilities, management has developed and maintains systems of internal control and supporting procedures. They are designed to provide reasonable assurance that assets are safeguarded, recorded and properly maintained and transactions are properly authorized and are in accordance with the Canada Pension Plan and Financial Administration Act and accompanying regulations. These controls include the establishment of an organizational structure that provides a well defined division of responsibilities and accountability, the selection and training of qualified staff, and the communication of policies and guidelines throughout the organization. Internal controls are reviewed and evaluated by both internal and external auditors in accordance with its respective audits. Management also reviews the recommendations of its internal and external auditors for improvements in internal controls.
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 Social Development.
Janet Milne, Assistant Deputy Minister
Financial and Administrative Services
Nicole Jauvin, Deputy Minister
Social Development Canada
AUDITOR'S REPORT
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, 2004 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 Social 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, 2004 and the changes in its net assets and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Sheila Fraser, FCA
Auditor General of Canada
Ottawa, Canada
September 2, 2004
| 2004 | 2003 Restated (Note 3) | ||
|---|---|---|---|
| Assets | |||
| Investments | |||
| CPP Investment Fund - at fair value (Note 4) | |||
| Provincial and Territorial bonds | 25,397 | 26,080 |
|
| Canada bonds | 4,070 | 4,071 | |
| CPP Investment Board - at fair value (Note 5) | 32,894 | 17,453 | |
| Cash | |||
| Deposit with Receiver General for Canada | 7,483 | 7,093 | |
| Receivables | |||
| Contributions | 1,946 | 1,631 | |
| Accrued interest | 862 | 939 | |
| Régime des rentes du Québec | 28 | 66 | |
| Beneficiaries (Note 6) | 36 | 49 | |
| 72,716 | 57,382 | ||
| Liabilities | |||
| Accounts payable | 55 | 74 | |
| Accrued pensions and benefits | 51 | 55 | |
| CPP Investment Board's liabilities, net of its other assets | 99 | 9 | |
| 205 | 131 | ||
| Net Assets | 72,511 | 57,251 | |
| Net Assets, represented by: | |||
| Canada Pension Plan Investment Fund | 29,467 | 30,151 | |
| Accumulated transfers to Canada Pension Plan Investment Board | 29,824 | 21,690 | |
| Accumulated net gain (loss) from Investment Board's operations | 2,971 | (4,239) | |
| Canada Pension Plan Account (Note 7) | 7,483 | 7,093 | |
| CPP receivables, net of liabilities | 2,766 | 2,556 | |
| Net Assets | 72,511 | 57,251 | |
The accompanying notes are an integral part of these financial statements.
Approved by Social Development Canada:
Janet Milne, Assistant Deputy Minister
Financial and Administrative Services
Nicole Jauvin, Deputy Minister
Social Development Canada
| 2003 | 2002 Restated (Note 3) | ||
|---|---|---|---|
| Net assets, beginning of year | 57,251 | 55,094 | |
| Increase in assets | |||
| Contributions (Note 8) | 28,029 | 25,203 | |
| Investment Income / (loss) (Note 9) | 10,248 | (1,049) | |
| 38,277 | 24,154 | ||
| Decrease in assets | |||
| Pensions and Benefits | |||
| Retirement | 15,880 | 15,071 | |
| Survivors | 3,194 | 3,071 | |
| Disability | 2,850 | 2,779 | |
| Disabled Contributor's Child | 257 | 251 | |
| Death | 255 | 234 | |
| Orphan | 213 | 210 | |
| Net overpayments | (42) | (41) | |
| 22,607 | 21,575 | ||
| Administration costs (Note 10) | 410 | 422 | |
| 23,017 | 21,997 | ||
| Increase in net assets | 15,260 | 2,157 | |
| Net assets, end of year | 72,511 | 57,251 | |
The accompanying notes are an integral part of these financial statements.
| 2004 | 2003 | ||
|---|---|---|---|
| Cash Flow Provided by Operating Activities | |||
| Cash Receipts: | |||
| Contributions | 27,714 | 24,950 | |
| Interest from CPP Investment Fund | 2,572 | 2,839 | |
| Interest on Deposit with Receiver General for Canada | 188 | 163 | |
| Recoveries from Régime des rentes du Québec | 288 | 192 | |
| Recoveries from beneficiaries | 37 | 37 | |
| 30,799 | 28,181 | ||
| Cash Payments: | |||
| Pensions and Benefits | (22,634) | (21,613) | |
| Repayments to Régime des rentes du Québec | (251) | (235) | |
| Administration costs | (430) | (395) | |
| (23,315) | (22,243) | ||
| 7,484 | 5,938 | ||
| Cash Flow Used In Investing Activities | |||
| Transfers to CPP Investment Board | (8,134) | (7,318) | |
| Disposals of bonds - CPP Investment Fund | 2,498 | 2,383 | |
| Reinvestments in bonds - CPP Investment Fund | (1,458) | (680) | |
| (7,094) | (5,615) | ||
| Net increase in the Deposit with Receiver General for Canada | 390 | 323 | |
| Deposit with Receiver General for Canada, beginning of year | 7,093 | 6,770 | |
| Deposit with Receiver General for Canada, end of year | 7,483 | 7,093 | |
The accompanying notes are an integral part of these financial statements.