Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697721467395.pdf (Canada)
FINANCIAL STATEMENTS MARCH 31, 2014 LIBRARY OF PARLIAMENT TABLE OF CONTENTS Statement of Management Responsibility Including Internal Control Over Financial Reporting 1 Independent Auditors' Report to the Parliamentary Librarian Statement of Financial Position Statement of Operations and the Library's Net Financial Position Statement of Change in the Library's Net Debt Statement of Cash Flows Notes to the Financial Statements Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting 19 1 2 3 LIBRARY OF PARLIAMENT Statement of Operations and the Library's Net Financial Position For the Year Ended March 31 (in dollars) Expenses Information support for Parliament Governance and administrative services Total expenses Revenues Information support for Parliament Governance and administrative services Total revenues 2014 2013 40,057,580 10,684,623 41,619,868 11,697,227 50,742,203 53,317,095 604,796 604,796 714,218 5,395 719,613 Net cost of operations before government funding 50,137,407 52,597,482 Government funding Net cash provided by Government Change in due from Consolidated Revenue Fund Services provided without charge by other government departments (note 8(a)) Total government funding Net cost of operations after government funding 43,788,180 42,757,495 (1,539,923) 1,624,295 9,777,519 9,931,727 52,025,776 54,313,517 (1,888,369) (1,716,035) The Library's net financial position - Beginning of year 3,044,325 4,760,360 The Library's net financial position -
 End of year 1,155,956 3,044,325 Segmented information (note 9) The accompanying notes form an integral part of these financial statements.
4 LIBRARY OF PARLIAMENT Statement of Change in the Library's Net Debt For the Year Ended March 31 (in dollars) Net cost of operations after government funding Change due to tangible capital assets Acquisition of tangible capital assets Amortization of tangible capital assets Loss on write-down of tangible capital assets Total change due to tangible capital assets Change due to inventories for resale Change due to prepaid expenses Total changes Net decrease in the Library's net debt The Library's net debt - Beginning of year The Library's net debt - End of year The accompanying notes form an integral part of these financial statements.
2014 2013 (1,888,369) (1,716,035) 300,657 450,917 (635,845) (611,166) (7,583) (43,744) (342,771) (203,993) (28,128) (30,631) 2,126 1,690 (368,773) (232,934) (2,257,142) (1,948,969) 5,802,221 7,751,190 3,545,079 5,802,221 .
5 LIBRARY OF PARLIAMENT Statement of Cash Flows For the Year Ended March 31 (in dollars) Operating activities Net cost of operations before government funding Non-cash items: Amortization of tangible capital assets Loss on write-down of tangible capital assets 2014 2013 50,137,407 52,597,482 (635,845) (611,166) (7,583) (43,744) Services provided without charge by other government departments (note 8(a)) (9,777,519) (9,931,727) Variations in Statement of Financial Position: Decrease (increase) in accounts payable and accrued liabilities 1,823,134 (1,772,513) Increase in vacation pay and compensatory leave Decrease in employee future benefits Increase (decrease) in accounts receivable and advances Increase in prepaid expenses Decrease in inventory for resale (78,160) (138,739) 2,335,302 2,087,708 (283,211) 2,126 (28,128) 148,218 1,690 (30,631) Cash used in operating activities 43,487,523 42,306,578 Capital investing activities Acquisitions of tangible capital assets Cash used in capital investing activities 300,657 450,917 300,657 450,917 Net cash provided by Government of Canada 43,788,180 42,757,495 The accompanying notes form an integral part of these financial statements.
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6 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 1.

Authority and objectives These statements provide the financial information related to all the operations controlled by the Library of Parliament (the Library).

Formally established under the Parliament of Canada Act, the Library’s efforts in support of an informed and accessible Parliament pre-date Confederation.
The Library provides Senators, Members of Parliament, and parliamentary committees with the independent, non-partisan information they need to examine the issues of the day, consider legislation and hold the government accountable.

It preserves Parliament’s rich documentary heritage while optimizing access to its important collections.
It also welcomes hundreds of thousands of visitors to Parliament each year, and offers interpretive tours and educational programs and products to help the public understand Parliament’s role in our democratic system and the important work parliamentarians do.
The activities of the Library can be summarized as follows: Information support for Parliament – To provide parliamentarians with information, documentation, research and analysis services to help them fulfill their roles as legislators and representatives and to support them in their efforts to make Parliament and information about Parliament accessible to the public.
Governance and administrative services – Activities and resources that enable managers and employees to deliver activities and programs for and about Parliament.

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7 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 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 Library is financed by the Government of Canada through parliamentary authorities.
Financial reporting of authorities provided to the Library do not parallel financial reporting according to Canadian generally accepted accounting principles since authorities are primarily based on cash flow requirements.

Consequently, items recognized in the Statement of Operations and the Library's 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.

(b) Net cash provided by government – The Library operates within the Consolidated Revenue Fund (the CRF), which is administered by the Receiver General for Canada.

All cash received by the Library is deposited to the CRF and all cash disbursements made by the Library are paid from the CRF.
The net cash provided from the CRF is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.

(c) Amounts due from the Consolidated Revenue Fund – Amounts due from the CRF are the result of timing differences at yearend 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 Library is entitled to draw from the CRF without further appropriations to discharge its liabilities.

(d) Revenues – Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues takes place.

(e) Expenses – Expenses are recorded on the accrual basis: i.

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
ii.

Services provided without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses at their estimated cost.

(f) Employee future benefits i.

Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada.
The Library's contributions to the Plan are charged to expenses in the year incurred and represent the total obligation of the Library to the Plan.

The Library'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, the Plan's sponsor.

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8 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 2.
Summary of significant accounting policies (continued) ii.

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 receivable and advances – Accounts receivable and advances are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

(h) Inventory for resale – Inventory is held for resale and is valued at the lower of cost and net realizable value on a first-in, first-out basis.
(i) Foreign currency transactions – Transactions involving foreign currencies are translated into Canadian dollar equivalents using rates of exchange in effect at the time of those transactions.

Monetary assets and liabilities denominated in a foreign currency are translated into Canadian dollars using the rate of exchange in effect at yearend.
(j) Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $2,500 or more are recorded at their acquisition cost.

The Library does not capitalize intangible assets, works of art and historical treasures that have cultural, aesthetic or historical value.
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows: Asset Class Amortization Period Machinery and equipment Other equipment Computer equipment Computer software Leasehold improvements 5 years 3 - 15 years 3 years 3 years over the lease term (k) Collections – Collections of books and reference materials owned by the Library are charged to expense in the year of acquisition.
During the year, the Library incurred $1,738,018 in expenditures on collections ($1,869,992 in 2012-2013).

(l) 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 severance 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.

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9 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 3.
Parliamentary authorities The Library receives most of its funding through annual parliamentary authorities.

Items recognized in the Statement of Operations and the Library's Net Financial Position and in the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years.

Accordingly, the Library 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 Net cost of operations before government funding Adjustments for items affecting net cost of operations but not affecting authorities: Amortization of tangible capital assets Services provided without charge by other government departments Increase in vacation pay and compensatory leave Decrease in employee future benefits Revenue not available for spending Loss on write-down of tangible capital assets Refund of prior year's expenditures 2014 2013 (in dollars) 50,137,407 52,597,482 (635,845) (611,166) (9,777,519) (9,931,727) (78,160) 2,335,302 4,279 (7,583) 78,005 (138,739) 2,087,708 11,096 (43,744) 29,670 Total items affecting net cost of operations but not affecting authorities (8,081,521) (8,596,902) Adjustments for items not affecting net cost of operations but affecting appropriations: Acquisitions of tangible capital assets Decrease in inventory for resale Proceeds from disposal of capital assets Increase in prepaid expenses Total items not affecting net cost of operations but affecting authorities 300,657 (28,128) 2,126 274,655 450,917 (30,631) 5,395 1,690 427,371 Current year authorities used 42,330,541 44,427,951 .
10 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 3.

Parliamentary authorities (continued) (b) Authorities provided and used Authorities provided: Vote 10 – Operating expenditures Statutory amounts Less: Lapsed: Operating 2014 2013 (in dollars) 37,817,080 4,983,016 39,331,080 5,097,168 (469,555) (297) Current year authorities used 42,330,541 44,427,951 .

11 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 4.
Accounts payable and accrued liabilities The following table presents details of the Library's accounts payable and accrued liabilities: Accounts payable – Other government departments and agencies Accounts payable – External parties Total accounts payable Accrued liabilities 2014 2013 (in dollars) 292,746 617,365 910,111 1,042,476 310,572 767,801 1,078,373 2,697,348 Total accounts payable and accrued liabilities 1,952,587 3,775,721 .
12 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 5.

Employee future benefits (a) Pension benefits: The Library's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government.

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 Library contribute to the cost of the Plan.
Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to 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 $ 3,503,559 ($3,639,379 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 Library'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 Library 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: Accrued benefit obligation – Beginning of year Expense for the year Benefits paid during the year 2014 2013 (in dollars) 3,879,197 (570,219) (1,765,083) 5,966,905 619,527 (2,707,235) Accrued benefit obligation – End of year 1,543,895 3,879,197 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.

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13 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 6.
Accounts receivable and advances The following table presents details of the Library's accounts receivable and advances balances: Receivables – Other government departments and agencies Receivables – External parties Employee advances Net accounts receivable 2014 2013 (in dollars) 149,537 253,005 3,542 59,543 622,360 7,392 406,084 689,295 .

14 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 7.
Tangible capital assets (in dollars) Cost Accumulated amortization Net book value Capital asset class Machinery and equipment Other equipment Computer equipment Computer software Leasehold improvements Opening balance Acquisitions Disposals and write offs Closing balance Opening balance Amortization Disposals and write offs Closing balance Total 6,172,235 300,657 82,104 6,390,788 3,703,434 635,845 74,521 4,264,758 2,126,030 2,468,801 Amortization expense for the year ended March 31, 2014 is $635,845 (2013 - $611,166).
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15 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 8.

Related party transactions The Library is related, as a result of common ownership, to all Government of Canada departments, agencies, and Crown corporations.

The Library enters into transactions with these entities in the normal course of business and on normal trade terms.

In addition, the Library has agreements with the House of Commons related to the provision of information technology services.
During the year, the Library received common services that were obtained without charge from other Government departments as presented in part (a) below.

(a) Common services provided without charge by other government departments During the year, the Library received services without charge from certain common service organizations, related to accommodation and the employer's contribution to the health and dental insurance plans.
These services provided without charge have been recorded in the Library's Statement of Operations and Net Financial Position as follows: Accommodation Employer's contribution to health and dental insurance plan Total 2014 2013 (in dollars) 7,557,902 2,219,617 7,557,902 2,373,825 9,777,519 9,931,727 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, cheque issuance and translation services provided by Public Works and Government Services Canada, are not included in the Library's Statement of Operations and the Library's Net Financial Position.
In addition, the costs of maintenance, identity cards, transportation and messenger services provided by the Senate and the House of Commons are also not included in the Library's Statement of Operations and the Library's Net Financial Position.

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16 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 8.
Related party transactions (continued) (b) Other transactions with related parties Accounts receivable – Other government departments and agencies Accounts payable – Other government departments and agencies Expenses – Other government departments and agencies 2014 2013 (in dollars) 149,537 292,746 59,543 310,572 6,754,548 6,846,109 Expenses and revenues disclosed in note 8 (b) exclude common services provided without charge, which are already disclosed in note 8 (a).

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17 LIBRARY OF PARLIAMENT Notes to the Financial Statements For the Year Ended March 31 9.

Segmented information Presentation by segment is based on the Library's program activity structure.

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 program activities, by major object of expenses and by major type of revenues.
The segment results for the period are as follows: 2014 Governance and administrative services 7,171,995 1,030,905 1,238,190 332,039 622,319 89,018 35,618 131,194 32,283 1,062 2013 (in dollars) Total Total 35,848,602 38,092,607 7,557,902 2,334,524 2,183,997 731,263 635,845 584,247 516,115 304,062 38,063 7,583 7,557,902 2,580,549 2,265,676 621,161 611,166 526,435 603,685 367,100 47,070 43,744 Information support for Parliament 28,676,607 6,526,997 1,096,334 1,851,958 108,944 546,827 548,629 384,921 304,062 5,780 6,521 40,057,580 10,684,623 50,742,203 53,317,095 583,979 20,817 583,979 675,211 20,817 39,007 Expenses Salaries and employee benefits Accommodation Professional and special services Material, equipment and supplies Rentals Amortization of tangible capital assets Information Communications, travel and relocation Cost of goods sold Repairs and maintenance Loss on write-down of tangible capital assets Total expenses Revenues Sales of goods and information products – External entities Sales of goods and information products – Other Government Departments Proceeds from disposal of tangible capital assets Total revenues 604,796 604,796 Net cost from continuing operations 39,452,784 10,684,623 50,137,407 52,597,482 .
5,395 719,613 18 Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting Summary of the assessment of effectiveness of the system of internal control over financial reporting and action plan of the Library of Parliament for fiscal year 2013-2014 19 Preface With the adoption by the Library of Parliament (the “Library”) of the Policy on Internal Control, effective November 9, 2010, the Library is required to demonstrate the measures it is taking to maintain an effective system of internal control over financial reporting (ICFR).
As part of this policy, the Library is expected to conduct an annual assessment of its system of ICFR, establish an action plan to address any necessary adjustments, and to attach to the Statement of Management Responsibility a summary of the assessment results and action plan.
An effective system of ICFR aims to achieve reliable financial statements and to provide assurances that: transactions are appropriately authorized; financial records are properly maintained; • • • assets are safeguarded from risks such as waste, abuse, loss, fraud and mismanagement; • applicable laws, regulations and policies are followed.
It is important to note that the system of ICFR is not designed to eliminate all risks, rather to mitigate risk to a reasonable level with controls that are balanced with and proportionate to the risks they aim to mitigate.

The maintenance of an effective system of ICFR is an ongoing process designed to identify, assess effectiveness and adjust as required key risks and associated key controls, as well as to monitor its performance in support of continuous improvement.

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Introduction This document is attached to the Library Statement of Management Responsibility Including Internal Control Over Financial Reporting for the 2013-2014 fiscal-year.

As required by the Library Policy on Internal Control, this document provides summary information on the measures taken by the Library to maintain an effective system of internal control over financial reporting (ICFR).
In particular, it provides summary information on the assessments conducted by the Library as at March 31, 2014, including progress, results and related action plans along with some financial highlights pertinent to understanding the control environment unique to the Library.

This is the fourth year of publication of this annex.
1.1 Authority, Mandate and Program Activities Detailed information on the Library’s authority, mandate and program activities can be found in the Library Strategic Outlook 2012-2017.

Financial highlights Below is key financial information for fiscal year 2013-2014.

More information can be found in the Library’s audited Financial Statements and Notes to the Financial Statements.

• Total expenses were $50.7M, 71% of which is salary.

• Total revenues were $604.8K, most of which are from Boutique sales.
• Total assets and liabilities were $4.3M and $5.5M respectively.

Tangible capital assets comprise 49% of departmental total assets.

Accounts payable and accrued liabilities comprise 36% of total liabilities.

• The Library has a number of information systems that are critical to its operations and financial reporting.

1.2 Audited financial statements Financial statements of the Library have been audited since 2007.
The Library has always received a clean audit opinion, including for fiscal-year 2013-2014.

1.3 Service arrangements relevant to financial statements The Library relies on other organizations for the processing of certain transactions that are recorded in its financial statements.

• PWGSC centrally administers the payments of salaries and the management of accommodation services.
• Treasury Board Secretariat provides the Library with information used to calculate various accruals and allowances, such as the accrued severance liability.

• Under a Memorandum of Understanding, the House of Commons provides system development and maintenance support services for the information systems used in financial reporting and also delivers security monitoring services.
1.4 Accounting changes in fiscal-year 2013-2014 No changes have been made to the Government of Canada Chart of Accounts object code classification and therefore, there was no need to reclassify previous year figures to conform to the current year’s presentation.

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21 2.

Library's control environment relevant to ICFR The Library recognizes the importance of setting the tone from the top to help ensure that staff at all levels understand their roles in maintaining effective systems of ICFR and is well equipped to exercise these responsibilities effectively.
The Library’s focus is to ensure risks are managed well through a responsive and risk-based control environment that enables continuous improvement and innovation guided by the Values and Ethics Code for the Library.

2.1 Key positions, roles and responsibilities Below are the Library’s key positions and committees with responsibilities for maintaining and reviewing the effectiveness of its system of ICFR.
Parliamentary Librarian (PL) – The Library’s PL, as Accounting Officer, assumes overall responsibility and leadership for the measures taken to maintain an effective system of internal control.

In this role, the PL chairs the Library Executive Committee.

Chief Financial Officer (CFO) – The Library’s CFO reports directly to the PL and provides leadership for the coordination, coherence and focus on the design and maintenance of an effective and integrated system of ICFR, including its annual assessment.
Service Heads – The Library’s Service Heads in charge of program delivery are responsible for maintaining and reviewing the effectiveness of the system of ICFR falling within their mandate.

Library Executive Committee (LEC) – As the Library’s central decision-making body, the LEC reviews, approves and monitors the Corporate Risks Profile and the Library system of internal control, including the assessment and action plans relating to the system of ICFR.
2.2 Key measures taken by the Library The Library's control environment includes a series of measures to equip its staff to manage risks well through raising awareness, providing appropriate knowledge and tools as well as developing skills.
Key measures include: • The establishment of a values and ethics code; • Job descriptions for the Senior Officer, Financial Services and the Chief, Financial Services and Corporate Planning have been updated to include ICFR responsibilities; • Annual performance agreements with clearly set out financial management responsibilities for all executives; • Training program and communications in core areas of financial management; • Policies tailored to the Library’s control environment; • Regularly updated delegation of financial signing authorities instrument; • Documentation of main business processes and related key risk and control points to support the management and oversight of its system of ICFR.
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Assessment of the Library's system of ICFR 3.1 Assessment baseline The Library’s financial statements for the fiscal years 2011-2012, 2012-2013 and 2013-2014 were audited by Ernst & Young.

The financial statements for the previous 5 years were audited by KPMG.

In parallel, senior management has been providing increased focus on formalizing its approach to the management and on-going maintenance of its systems of ICFR with the objective of supporting continuous improvement.
In 2010-2011, consistent with the Library Policy on Internal Control, the Library also implemented a more systematic risk-based and multi-year assessment plan of the design and operating effectiveness of its systems of ICFR.
Whether it is to support the control-based audit requirements or those of the Policy on Internal Control, an effective system of ICFR has the objective to provide reasonable assurance that: transactions are appropriately authorized; • • data and financial information are accurate and consistent; • • assets are safeguarded; and • applicable laws, regulations and policies are followed.
financial records are properly maintained; Over time, this includes assessment of design and operating effectiveness of the system of ICFR leading to ensuring the on-going monitoring and continuous improvement of the Library system of ICFR.

Design effectiveness means to ensure that key control points are identified, documented, in place and that they are aligned with the risks (i.e.

controls are balanced with and proportionate to the risks they aim to mitigate) and that any remediation is addressed.
This includes the mapping of key processes and IT systems to the main accounts by location as applicable.

Operating effectiveness means that the application of key controls has been tested over a defined period and that any required remediation is addressed.

The assessment covers all Library control levels which include corporate or entity, general computer and business process controls.
On-going monitoring means that a systematic integrated approach to monitoring is in place, including periodic risk-based assessment and timely remediation.

3.2 Assessment method at the Library The self-assessment at the Library is a systematic review conducted to provide assurance on internal control over financial reporting.

In 2010-2011, a scoping and planning exercise was undertaken to identify key business processes and to document financial statement assertions and control categories.
Key business processes and sub- processes were identified, documented and the design effectiveness was tested.

In 2011-2012, the Library assessed the operating effectiveness of the key controls in the areas of compensation, goods and services and financial systems access security.

In 2012-2013, the operating effectiveness of the key controls in the areas of planning, budgeting and forecasting, preparation of financial statements and preparation of Public Accounts were assessed.
Furthermore, the Library has documented its entity-level controls that are needed to support the achievement of the Library’s mission, strategies and related business objectives.

23 In 2013-2014, the Library completed the first draft of its IT General Controls that are needed to support the achievement of the Library’s mission, strategies and related business objectives.

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4.

Assessment results as of March 31, 2014 During 2013-2014, the Library has continued to make solid progress in assessing and improving its key controls.

On this basis, the Library has documented a preliminary approach for IT General Controls in order to articulate its multi-year action plan and related implementation requirements.
Looking ahead, the Library will continue to ensure that controls are effective over time, taking into account the initial assessment as well as results from annual assessments and audit.
This will involve developing and implementing a well-integrated monitoring program to raise awareness and understanding of the Library’s system of ICFR at all levels of the organization, equip staff with the knowledge, skills and tools needed to maintain a robust system of ICFR, and continue to assess the status of ICFR on an ongoing basis.

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24 5.

Library’s action plan Building on progress to date the Library has developed a multi-year plan to fully implement the requirements of the Policy on Internal Control and is positioned to complete the main assessment of its system of ICFR and also, the implementation of an ongoing monitoring process in 2014-2015.

The action plan below highlights the progress towards ensuring an effective system of internal control over financial reporting is in place.
Scoping and Planning Process Controls Documentation and Identification of Controls Compensation Goods and services Boutique Planning, budgeting and forecasting Preparation of financial statements Preparation of Public Accounts Financial systems access security Test of Design Compensation Goods and services Boutique Planning, budgeting and forecasting Preparation of financial statements Preparation of Public Accounts Financial systems access security Test of Operating Effectiveness Compensation Goods and services Boutique Planning, budgeting and forecasting Preparation of financial statements Preparation of Public Accounts Financial systems access security Completed 2014-2015 2015-2016  Completed 2014-2015 2015-2016                      25 IT General Controls Completed 2014-2015 2015-2016 Documentation and identification of controls Test of design Test of operating effectiveness    Entity Level Controls Completed 2014-2015 2015-2016 Documentation and identification of controls  Test of design Test of operating effectiveness   Monitoring On-going monitoring Completed 2014-2015  2015-2016  The Library is fully committed to this action plan.
However, attainment of the milestones identified above will be contingent on the Library being able to maintain its current level of resources to implement the requirements of the Policy on Internal Control.

Any major changes to the Library structure could certainly have an impact on the associated timelines.

The Library will update its action plan on an annual basis.

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