Common menu bar
Archived - Annual Report of Canada Pension Plan 2004-2005
Archived Content
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, please contact us to request an alternate format.
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 for the public sector.
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.
David Baxter
Comptroller
Social Development Canada
Nicole Jauvin
Deputy Minister
Social Development Canada
August 25, 2005
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, 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
August 25, 2005
| Statement of Net Assets as at March 31 |
|||
| 2005 | 2004 | ||
| Restated | |||
| (Note 3) | |||
| (in millions of dollars) | |||
| Assets | |||
| Investments | |||
| CPP Investment Fund – at fair value (Note 4) | |||
| Provincial and Territorial bonds | 16,693 | 25,397 | |
| Canada bonds | 2,641 | 4,070 | |
| CPP Investment Board – at fair value (Note 6) | 58,722 | 32,894 | |
| Cash | |||
| Deposit with Receiver General for Canada | 2,771 | 7,483 | |
| Receivables | |||
| Contributions | 2,278 | 1,946 | |
| Accrued Interest | 550 | 862 | |
| Régime des rentes du Québec | 30 | 28 | |
| Beneficiaries (Note 7) | 36 | 36 | |
| 83,721 | 72,716 | ||
| Liabilities | |||
| Accounts payable | 32 | 55 | |
| Accrued pensions and benefits | 52 | 51 | |
| Taxes due to Canada Customs and Revenue Agency | 84 | - | |
| CPP Investment Board’s liabilities, net of its other assets | 142 | 99 | |
| 310 | 205 | ||
| Net Assets | 83,411 | 72,511 | |
| Net Assets, represented by: | |||
| Canada Pension Plan Investment Fund | 19,334 | 29,467 | |
| Accumulated transfers to CPP Investment Board (Note 5) | 50,627 | 29,824 | |
| Accumulated net gain from Investment Board’s operations | 7,953 | 2,971 | |
| Canada Pension Plan Account (Note 8) | 2,771 | 7,483 | |
| CPP receivables, net of liabilities | 2,726 | 2,766 | |
| Net Assets | 83,411 | 72,511 | |
Contingencies (note 12)
The accompanying notes are an integral part of these financial statements.
Approved by Social Development Canada:
David Baxter
Comptroller
Social Development Canada
Nicole Jauvin
Deputy Minister
Social Development Canada
| 2005 | 2004 | ||
| Restated | |||
| (Note 3) | |||
| (in millions of dollars) | |||
| Net assets, beginning of year | 72,511 | 57,251 | |
| Increase in assets | |||
| Contributions (Note 9) | 28,941 | 28,029 | |
| Investment income (Note 10) | 6,108 | 10,248 | |
| 35,049 | 38,277 | ||
| Decrease in assets | |||
| Pensions and benefits | |||
| Retirement | 16,822 | 15,880 | |
| Survivors | 3,333 | 3,194 | |
| Disability | 2,926 | 2,850 | |
| Disabled contributor’s child | 258 | 257 | |
| Death | 249 | 255 | |
| Orphan | 216 | 213 | |
| Net overpayments | (41) | (42) | |
| 23,763 | 22,607 | ||
| Administration costs (Note 11) | 386 | 410 | |
| 24,149 | 23,017 | ||
| Increase in net assets | 10,900 | 15,260 | |
| Net assets, end of year | 83,411 | 72,511 | |
The accompanying notes are an integral part of these financial statements.
| Statement of Cash Flow for the year ended March 31 |
||||
| 2005 | 2004 | |||
| (in millions of dollars) | ||||
| Cash Flow Provided by Operating Activities | ||||
| Cash Receipts: | ||||
| Contributions | 28,609 | 27,714 | ||
| Interest from CPP Investment Fund | 2,071 | 2,572 | ||
| Interest on Deposit with Receiver Ge
neral for Canada |
135 | 188 | ||
| Recoveries from Régime des rentes du Québec | 265 | 288 | ||
| Recoveries from beneficiaries | 41 | 37 | ||
| 31,121 | 30,799 | |||
| Cash Payments: | ||||
| Pensions and benefits | (23,718) | (22,634) | ||
| Repayments to Régime des rentes du Québec | (268) | (251) | ||
| Administration costs | (409) | (430) | ||
| (24,395) | (23,315) | |||
| 6,726 | 7,484 | |||
| Cash Flow Used in Investing Activities | ||||
| Transfers to CPP Investment Board | ||||
| (including interest collected on its behalf) | (18,668) | (8,134) | ||
| Transfers from CPP Investment Board | 6,669 | - | ||
| Disposals of bonds net of reinvestments – CPP Investment Fund | 561 | 1,040 | ||
| (11,438) | (7,094) | |||
| Net Increase (Decrease) in the Deposit with Receiver General for Canada | (4,712) | 390 | ||
| Deposit with Receiver General for Canada, beginning of year | 7,483 | 7,093 | ||
| Deposit with Receiver General for Canada, end of year | 2,771 | 7,483 | ||
The accompanying notes are an integral part of these financial statements.