Other loans, investments and advances

Public Accounts of Canada 2016 Volume I—Top of the page Navigation

This group records loans, investments and advances not classified elsewhere.

Table 9.15 presents a summary of the balances and transactions for the various types of other loans, investments and advances.

Table summary

The table presents, in dollars, a summary of the balances and transactions of various types of other loans, investments and advances. It consists of five columns: a detailed listing of components; April 1 of the current year; Payments and other charges; Receipts and other credits; March 31 of the current year. The first series of rows presents the unconditionally repayable contributions by ministry with related departments and subtotals. The following rows of the series present a subtotal for all ministries concerned minus the portion expensed due to concessionary terms. The final row of the series presents a total for the unconditionally repayable contributions. The second series of rows presents the loans and accountable advances by ministry with related departments, programs, and subtotals. The final row of the series presents the total for loans and accountable advances. The third series of rows presents the other loans by ministry with related departments, programs and subtotals. The final rows of the series present the subtotal for other loans, minus the portion expensed due to concessionary terms and other discounts, plus the consolidation adjustment, followed by the total for other loans. A final row presents the total for this table.

Table 9.15
Other loans, investments and advances
(in dollars)

  April 1, 2015 Payments and other charges Receipts and other credits March 31, 2016
Unconditionally repayable contributions
Agriculture and Agri-Food 115,950,213 25,051,872 22,767,218 118,234,867
Global Affairs
Foreign Affairs, Trade and Development 525,000,000 525,000,000
Innovation, Science and Economic Development
Industry 882,294,234 1,374,720,499 312,374,690 1,944,640,043
Atlantic Canada Opportunities Agency 347,257,740 58,135,778 66,265,185 339,128,333
Economic Development Agency of Canada for the Regions of Quebec 443,465,744 91,487,739 67,473,970 467,479,513
Federal Economic Development Agency for Southern Ontario 182,281,073 77,343,103 32,892,857 226,731,319
Western Economic Diversification 30,004,266 19,920,331 2,695,963 47,228,634
Total 1,885,303,057 1,621,607,450 481,702,665 3,025,207,842
Subtotal 2,526,253,270 1,646,659,322 504,469,883 3,668,442,709
Less: portion expensed due to concessionary terms 245,890,377 9,449,873 18,276,404 237,063,846
Total—Unconditionally repayable contributions 2,280,362,893 1,637,209,449 486,193,479 3,431,378,863
Loans and accountable advances
Global Affairs
Foreign Affairs, Trade and Development
Missions abroad 46,017,787 177,505,542 180,879,307 42,644,022
Personnel posted abroad 22,512,773 16,910,409 15,045,777 24,377,405
Total 68,530,560 194,415,951 195,925,084 67,021,427
National Defence
Imprest accounts, standing advances and authorized loans 36,229,547 132,335,461 129,707,453 38,857,555
Other departments
Miscellaneous accountable advances 21,094,306 16,772,875 17,959,042 19,908,139
Miscellaneous accountable imprest funds and standing advances 20,023,503 721,252 455,916 20,288,839
Total 41,117,809 17,494,127 18,414,958 40,196,978
Total—Loans and accountable advances 145,877,916 344,245,539 344,047,495 146,075,960
Other
Agriculture and Agri-Food
Construction of multi-purpose exhibition buildings 35,593 35,593
Hog Industry Loan Loss Reserve Program 187,678,432 55,278,546 132,399,886
National Marketing Programs 277,889,614 32,073,044 49,236,986 260,725,672
Subtotal 465,603,639 32,073,044 104,515,532 393,161,151
Families, Children and Social Development
Employment and Social Development
Canada apprentice loans 18,808,790 68,803,068 2,340,587 85,271,271
Canada Student Loans Program 17,607,570,547 4,311,093,736 3,622,683,952 18,295,980,331
Provincial workers' compensation boards 13,607,001 13,607,001
Subtotal 17,639,986,338 4,379,896,804 3,625,024,539 18,394,858,603
Finance
Canadian Commercial Bank 42,202,293 42,202,293
Financial Consumer Agency of Canada—Advances 4,000,000 8,000,000 12,000,000
Subtotal 46,202,293 8,000,000 12,000,000 42,202,293
Fisheries, Oceans and the Canadian Coast Guard
Fisheries and Oceans
Canadian producers of frozen groundfish 128,315 128,315
Haddock fishermen 1,343,337 1,343,337
Subtotal 1,471,652 1,471,652
Global Affairs
Export Development Canada
Support and development of trade 2,772,322,727 66,147,900 171,883,928 2,666,586,699
Immigration, Refugees and Citizenship
Citizenship and Immigration
Immigration loans 42,833,344 17,301,999 13,580,351 46,554,992
Indigenous and Northern Affairs
Indian Affairs and Northern Development
Council of Yukon First Nations—Elders 2,469,055 691,300 1,777,755
Farm Credit Canada Guarantee Loans Program 103,695 103,695
First Nations in British Columbia 505,895,962 18,729,431 1,844,831 522,780,562
Indian Economic Development Fund 43,149 43,149
Indian Economic Development Guarantee Loans Program 422,127 422,127
Inuit Loan Fund 71,457 71,457
Native Claimants 444,656,491 19,232,248 8,260,570 455,628,169
On Reserve Housing Guarantee Loans Program 9,263,159 2,156,452 461,733 10,957,878
Stoney Band Perpetual Loan 389,615 389,615
Subtotal 963,314,710 40,118,131 11,258,434 992,174,407
Innovation, Science and Economic Development
Industry
Manufacturing, processing and service industries in Canada 110,000,000 110,000,000
Other business loans 77,963,193 62,791,651 68,330,038 72,424,806
National Research Council of Canada
H.L. Holmes Fund 5,005,889 63,866 5,069,755
Subtotal 192,969,082 62,855,517 68,330,038 187,494,561
Natural Resources
Nordion International Inc. 42,000,000 42,000,000
Public Services and Procurement
Public Works and Government Services
Seized Property Working Capital Account (negative 12,206,001) 44,440,992 34,983,862 (negative 2,748,871)
Transport
Greater Victoria Harbour Authority 2,151,269 42,720 2,108,549
St. Lawrence Seaway Management Corporation 173,698 173,698
Subtotal 2,324,967 42,720 2,282,247
Treasury Board
Federal Public Service Heatlh Care Administration Authority 574,965 2,066,051 2,082,164 558,852
Joint Learning Program 628,022 1,909,207 2,274,108 263,121
Subtotal 1,202,987 3,975,258 4,356,272 821,973
Veterans Affairs
Commonwealth War Graves Commission 56,376 414 55,962
Veterans' Land Fund
Advances 5,523 3,716 1,807
Subtotal 61,899 4,130 57,769
Other departments
Transition payments—Pay in arrears 691,612,328 5,623,191 31,847,086 665,388,433
Miscellaneous 399,678 55,258 144,223 310,713
Subtotal 692,012,006 5,678,449 31,991,309 665,699,146
Subtotal—Other 22,850,099,643 4,660,488,094 4,119,971,115 23,390,616,622
Less: portion expensed due to concessionary terms and other discounts 99,078,750 34,178,995 64,899,755
Total 22,751,020,893 4,660,488,094 4,085,792,120 23,325,716,867
Add: consolidation adjustmentLink to footnote 1 3,068,549,000 374,543,000 2,694,006,000
Total—Other 25,819,569,893 4,660,488,094 4,460,335,120 26,019,722,867
Total 28,245,810,702 6,641,943,082 5,290,576,094 29,597,177,690

Unconditionally repayable contributions

Unconditionally repayable contributions are, in substance loans, and are generally made to businesses pursuant to various Acts of Parliament, with various amounts outstanding.

These loans are aimed at stimulating economic development or for assistance. They bear various interest rates, some of which have concessional terms, and are repayable at various due dates with final instalments generally due within up to 10 years of initial disbursement.

Loans made on a long-term, low-interest or interest-free basis are recorded in part as expenses when the economic value of the loans is reduced due to their concessionary terms.

Missions abroad

Non-interest bearing advances have been made for interim financing of expenses at missions abroad, pending distribution to appropriations of Foreign Affairs, Trade and Development and other departments and agencies.

The total amount authorized to be outstanding at any time is $50,000,000.

Personnel posted abroad

A working capital advance account was established to finance loans and advances to employees posted abroad, including employees of other Government departments and agencies, as well as medical advances to locally-engaged staff.

The total amount authorized to be outstanding at any time is $38,200,000, as last amended by Foreign Affairs and International Trade Vote L12c, Appropriation Act No. 5, 2009–2010.

The closing balance consists of loans to employees, $17,711,250; advances for medical expenses, $1,321,694; advances for workmen's compensation, $6,358; security and other deposits under Foreign Service Directives, $2,714,995 and, school and club debentures, $2,623,108.

The loans to employees bear interest at rates from 0.75 per cent to 2.5 per cent per annum, and are repayable within 4 years, with final instalments between April 1, 2016 and March 1, 2019.

Imprest accounts, standing advances and authorized loans

This account was established for the purpose of financing: (a) public funds imprest and public funds advance accounts; (b) standing advances; (c) authorized loans and advances to employees posted abroad; and (d) authorized recoverable advances to establish military messes and canteens.

The total amount authorized to be outstanding at any time is $120,000,000, as last amended by National Defence Vote L11b, Appropriation Act No. 4, 2001–2002.

Miscellaneous accountable advances

The closing balance reflects amounts outstanding in the hands of departments, agencies and individuals, at year end, to be expended in the following year.

Miscellaneous accountable imprest funds and standing advances

This account is operated to provide imprest funds, accountable advances and recoverable advances to departments and agencies.

The total amount authorized to be outstanding at any time is $22,000,000.

Construction of multi-purpose exhibition buildings

The remaining loan has been made to finance the construction of a multi-purpose exhibition building.

Hog Industry Loan Loss Reserve Program

Loans made by financial institutions under the Hog Industry Loan Loss Reserve Program are partially guaranteed by the Crown. Where the producers have defaulted and the lenders have carried out regular collection activities, the Crown becomes subrogated to the lender's rights against the producer in default, to the extent of an amount equal to the withdrawal from the Reserve Fund.

National Marketing Programs

Loans made by financial institutions under the Canadian Agricultural Loans Act and advances made by producer organizations under the Agricultural Marketing Programs Act are guaranteed by the Crown. Where the guarantee is honoured, the Crown becomes subrogated to the financial institution's or producer organization's rights to outstanding principal, interest and costs.

Canada apprentice loans

Canada apprentice loans are administrated under the authority of Section 4 of the Apprentice Loans Act which came into effect on January 2, 2015. The Minister of Families, Children and Social Development is authorized to enter into a loan agreement directly with any eligible apprentice. The loans bear interest at either a variable rate (prime rate plus 2.5 per cent) or a fixed rate (prime rate plus 5.0 per cent). Apprentices are not required to pay interest on their loans while they are still in their apprenticeship program. The typical repayment period is 10 years, but the maximum period is 15 years. Borrowers having difficulty repaying their loans may be eligible for assistance under the Repayment Assistance Plan.

The total amount of apprentice loans issued under the authority of the Apprentice Loans Act may not exceed $1.5 billion. The total amount of outstanding apprentice loans as at March 31, 2016 amounts to $85,271,271 ($18,808,790 as at March 31, 2015). During the year, no loans were written off (none as at March 31, 2015).

Canada Student Loans Program

Since August 1, 2000, Canada Student Loans are issued under the Direct Loan Regime. Before this date, the loans were issued under the Guaranteed Loan Regime (1964–1995) or under the Risk-Shared Loan Regime (1995–2000). Under these three different regimes, no security is received from the students and the loans bear interest at either a variable rate (prime rate plus 2.5 per cent) or a fixed rate (prime rate plus 5.0 per cent). Students are not required to pay interest on their loans while they are still studying. The typical repayment period is 10 years, but the maximum period is 15 years. Borrowers having difficulty repaying their loans may be eligible for assistance under the Repayment Assistance Plan.

The total amount of direct loans issued under the authority of the Canada Student Financial Assistance Act and outstanding risk-shared loans bought-back by Employment and Social Development may not exceed 24 billion dollars.

During the year, loans and interest receivable on these loans totaling $172,045,002 ($287,430,643 as at March 31, 2015) were written off by Employment and Social Development Vote 9c from the Appropriation Act No. 5, 2015–16 and $95,293,311 ($111,122,408 as at March 31, 2015) were written off pursuant to Section 25.1 of the Financial Administration Act. In addition, loans and interest receivable on these loans totalling $238,236,858 ($209,757,496 as at March 31, 2015) were forgiven as per the Canada Student Financial Assistance Act and $34,696 ($37,163 as at March 31, 2015) were forgiven as per the Canada Student Loans Act.

Direct loans to students

Loans issued on or after August 1, 2000 are administered under the authority of Section 6.1 of the Canada Student Financial Assistance Act, which authorizes the Minister of Families, Children and Social Development to enter into loan agreements directly with any qualifying student. Agreements are subject to the terms and conditions approved by the Governor in Council, on the recommendation of the Minister of Families, Children and Social Development with the concurrence of the Minister of Finance. The total amount of outstanding direct loans as at March 31, 2016 amounts to $18,091,457,031 ($17,340,771,357 as at March 31, 2015).

Risk-shared student loans

Loans issued prior to August 1, 2000 and on or after August 1, 1995 are amounts related to student loans subrogated to the Crown under the authority of the Canada Student Financial Assistance Act. The total amount of loans outstanding as at March 31, 2016 amounts to $68,353,582 ($96,701,249 as at March 31, 2015) for loans owned by Employment and Social Development and $966,926,519 ($1,086,269,018 as at March 31, 2015) for loans under the current ownership of the financial institutions.

Guaranteed student loans

Loans issued prior to August 1, 1995 are amounts related to student loans subrogated to the Crown under the authority of the Canada Student Loans Act. The total amount of loans outstanding as at March 31, 2016 amounts to $136,169,718 ($170,097,941 as at March 31, 2015) for loans owned by Employment and Social Development and $5,530,501 ($7,847,771 as at March 31, 2015) for loans under the current ownership of the financial institutions.

Provincial workers' compensation boards

This account is operated under the authority of subsection 4(6)(b) and (e) of the Government Employees Compensation Act, to provide funds to enable provincial workers' compensation boards to administer claims on behalf of the Crown, and provide compensation benefits to Canadian Government employees injured or ill in the course of their employment.

The total amount of advances that is authorized to be made for each provincial workers' compensation board is not to exceed three months' disbursements for compensation.

The advances are subject to the terms and conditions of agreements with provincial workers' compensation boards and are to be repaid on termination of those agreements.

Canadian Commercial Bank

Advances have been made to the Canadian Commercial Bank representing the Government's participation in the support group as authorized by the Canadian Commercial Bank Financial Assistance Act. These funds represent the Government's participation in the loan portfolio that was acquired from the Bank and the purchase of outstanding debentures from existing holders.

Financial Consumer Agency of Canada

Interest-bearing advances have been made to defray the cost of operation of the Agency pursuant to Section 13(1) of the Financial Consumer Agency of Canada Act.

Canadian producers of frozen groundfish

Loans have been made to Canadian producers of frozen groundfish, canned and frozen crabmeat, and canned and frozen lobster meat, to assist in the financing of inventories.

The loans bore interest at the rate of 13 per cent per annum, and were repayable in equal annual instalments over 7 years, with the final instalment in December 1987. These loans are deemed unrecoverable and parliamentary authority is required to write off the balance.

Haddock fishermen

Loans have been made to Nova Scotia haddock fishermen whose fishery was closed from February 1 to May 31, 1975, pursuant to an agreement under the International Agreement for the Northwest Atlantic Fisheries. The total loan authority is $1,650,000.

The loans bore interest at the rate of 8 per cent per annum, and were repayable in equal annual instalments over 4 years, with the final instalment in 1979. These loans are deemed unrecoverable and parliamentary authority is required to write off the balance.

Support and development of trade

Pursuant to Section 23 of the Export Development Act, the Minister for International Trade, with the concurrence of the Minister of Finance, may authorize Export Development Canada (EDC) to enter into certain transactions or class of transactions where the Minister is of the opinion it is in the national interest and where EDC has advised the Minister that it will not enter into such transactions without such authorization. Funding for such transactions is provided by the Minister of Finance out of the Consolidated Revenue Fund and the transactions are administered by EDC on behalf of the Government of Canada.

EDC's mandate is to support and develop, directly or indirectly, Canada's export trade, and Canadian capacity to engage in that trade and respond to international business opportunities. In 2014, new regulations came into force which clarify the circumstances in which EDC can provide support within Canada in fulfillment of its mandate. During the year, no Canada Account transactions were entered into in the support and development of domestic trade.

Loan transactions with longer repayment terms or low or zero interest rates are recorded in part as expenses when the economic value is reduced due to such concessionary terms.

Table 11.4 and Table 11.5 of Section 11 of this volume present additional information on contractual obligations and guarantees that are disclosed in the notes to the audited consolidated financial statements of Section 2 of this volume.

The following table presents the balances and transactions for loans made to non-sovereign entities, together with their terms and conditions of repayments.

Table summary

The table presents, in dollars, the balances and transactions made to non-sovereign entities, together with their terms and conditions of repayments. It consists of five columns: a detailed listing of components; April 1 of the current year; Payments and other charges, divided into two columns—Payments or other charges and Revaluation; Receipts and other credits, divided into two columns—Receipts or other credits and Revaluation; March 31 of the current year. Each series of rows under Export trade presents the loans by term and condition of repayment with the countries concerned. The following rows present the insurance claims paid during the year, followed by a subtotal. The next row presents the portion expensed due to concessionary terms. A final row presents the total for export trade.

(in dollars)

  April 1, 2015 Payments and other charges Receipts and other credits March 31, 2016
Payments or other chargesLink to footnote 2 Revaluation Receipts or other creditsLink to footnote 3 Revaluation
Export trade
(a) 6 to 10 year term, 8.28 per cent to 10.28 per cent interest per annum, with final repayments between February 2008 and April 2011:
Antigua 37,998 963 38,961
(b) 11 to 15 year term, comprised of several loans with fixed or variable interest rates currently ranging from 2.44 per cent to 4.18 per cent per annum, with final repayments between May 2021 and November 2022:
Sweden 33,198,753 910,229 4,585,650 29,523,332
(c) 16 to 20 year term, comprised of several loans with fixed or variable interest rates currently ranging from 1.85 per cent to 5.89 per cent per annum, with final repayments between December 2017 and March 2023:
United States 1,017,371,096 22,367,853 165,987,367 873,751,582
(d) Term loan, interest based on the higher of 2.0 per cent or London Interbank Offered Rate (LIBOR), plus a range of rates from 3.0 per cent to 8.0 per cent interest per annum, with final repayments between June 2009 and July 2010:
United States 1,721,448,494 42,863,321 1,310,911 1,763,000,904
Insurance claims paid during the year:
United States 266,386 5,534 271,920
Subtotal 2,772,322,727 66,147,900 171,883,928 2,666,586,699
Less: portion expensed due to concessionary terms
Total—Export trade 2,772,322,727 66,147,900 171,883,928 2,666,586,699

Immigration loans

Section 88 of the Immigration and Refugee Protection Act authorizes the making of loans for the purpose of the Act.

The total amount authorized to be outstanding at any time is $110,000,000.

The terms and conditions of the loans, with their year-end balances, are as follows:

  1. repayable by monthly instalments over 1 to 6 years, with a possible deferment of 2 years, bearing interest at rates from 0.76 per cent to 9.06 per cent per annum, with final instalments between April 1, 2016 and April 1, 2022, $46,544,861; and
  2. repayable by monthly instalments over 1 to 6 years, with a possible deferment of 2 years, non-interest bearing, with final instalments past due, $10,131.

Council of Yukon First Nations—Elders

Loans have been made to the Council of Yukon First Nations to provide interim benefits to elderly Yukon Indians pending settlement of Yukon Indian land claims.

The terms and conditions of the loans are as follows:

  1. loans made before an agreement-in-principle for the settlement of a claim is reached are non-interest bearing;
  2. loans made after the date on which an agreement-in-principle for the settlement of a claim has been reached, bear interest at a rate equal to the rate established by the Minister of Finance in respect of borrowings for equivalent terms by Crown corporations; and
  3. loans are due and payable, as to principal and interest, on the date on which the claim is settled or on a date fixed in the loan agreement or promissory note, whichever date is earlier.

All the loans outstanding at year end bear interest at rates from 2.28 per cent to 6.00 per cent per annum.

Farm Credit Canada Guarantee Loans Program

The Farm Credit Canada guarantee loans program was discontinued as of November 14, 1989. The last active loan guarantee has expired and no future loan guarantees will be given under this program.

As of March 31, 2016, the outstanding amount represents the remaining defaulted loans reimbursed to the lenders by the Minister. These loans are deemed unrecoverable and the balance will be written off in future years.

First Nations in British Columbia

Loans have been made to First Nations in British Columbia to support their participation in the British Columbia Treaty Commission process related to the research, development and negotiation of treaties.

During the year, loans were authorized by Indian Affairs and Northern Development Vote L20, Appropriation Act No.2, 2015–2016.

The terms and conditions of the loans are as follows:

  1. loans made before an agreement-in-principle for the settlement of a treaty is reached are non-interest bearing;
  2. loans made before April 1, 2004 and after the date on which an agreement-in-principle for the settlement of a treaty has been reached, bear interest at a rate equal to the rate established by the Minister of Finance in respect of borrowings for equivalent terms by Crown corporations;
  3. loans made between April 1, 2004 and March 31, 2016 and after the date on which an agreement-in-principle for the settlement of a treaty has been reached, shall be interest free, unless the loans become due and payable during this period; and
  4. loans are due and payable by the First Nations and will pay the loan on the earliest of the following dates:
    1. date on which the treaty is settled;
    2. twelfth anniversary of the first loan advance to the First Nations under the earliest First Nations' funding agreement;
    3. seventh anniversary after the signing of an agreement-in-principle; or
    4. date the federal minister demands payment of the loans due to an event of default under this agreement or under any First Nations' funding agreement.

The interest-bearing and non-interest bearing portions of the loans outstanding at year end are $14,583,196 and $508,197,366 respectively. Rates are from 0.6594 per cent to 4.545 per cent per annum for the interest-bearing portion.

Indian Economic Development Fund

Loans have been made for the purposes of economic development of Indians to Indians or Indian bands, or to individuals, partnerships or corporations, the activities of which contribute or may contribute to such development.

The total amount authorized to be outstanding at any time is $48,550,835, as last amended by Indian Affairs and Northern Development Vote 7b, Appropriation Act No. 4, 1996–97.

All outstanding loans bear interest at rates from 7 per cent to 11.25 per cent per annum.

Indian Economic Development Guarantee Loans Program

The Indian Economic Development Guarantee authority, established under Vote L53b, Appropriation Act No. 1, 1970, amended under P.C. 1977-3608, authorized the department to guarantee loans for Indian businesses on a risk-sharing basis with commercial lenders. The guarantee level is not to exceed at any time $60,000,000, less the total amount of payments made to implement previous guarantees under that authority.

Simple interest, usually based on a percentage plus the prime rate, will accrue on the debt after payout. All payments, including accrued interest, remain as a debt of the client until recovered in full.

Inuit Loan Fund

Loans have been made to individual Inuit or groups of Inuit to promote commercial activities and gainful occupations. Loans have also been made to co-operative associations, credit unions, caisses populaires or other credit societies incorporated under provincial laws, where the majority of members are Inuit, or to corporations incorporated under the laws of Canada, or provincial laws, where the controlling interest is held by Inuit.

The total amount authorized to be outstanding at any time is $6,633,697, as last amended by Indian Affairs and Northern Development Vote 37b, Appropriation Act No. 4, 1995–96.

The remaining loan bears interest at a rate of 5.50 per cent per annum.

Native claimants

Loans have been made to native claimants to defray the costs related to the research, development and negotiation of claims.

During the year, loans were authorized by Indian Affairs and Northern Development Vote L15, Appropriation Act No. 2, 2015–2016.

The terms and conditions of the loans are as follows:

  1. loans made before an agreement-in-principle for the settlement of a claim is reached are non-interest bearing;
  2. loans made after the date on which an agreement-in-principle for the settlement of a claim has been reached, bear interest at a rate equal to the rate established by the Minister of Finance in respect of borrowings for equivalent terms by Crown corporations; and
  3. loans are due and payable as to principal and interest on the date on which the claim is settled, or on a date fixed in the agreement.

The interest bearing and the non-interest bearing portions of the loans outstanding at year end are $58,223,312 and $397,404,857 respectively. Rates are from 0.69 per cent to 11.89 per cent per annum for the interest-bearing portion.

On Reserve Housing Guarantee Loans Program

On Reserve Housing guarantees provide needed support to Indian or Indian bands residing on reserves or Crown land. Reserves are, as such, non-mortgageable and the ministerial guarantee provides security to the lending institution in the event of a default by the client.

The total amount authorized to be outstanding at any time is $2.2 billion, as last amended by Indian Affairs and Northern Development Vote 7b, Appropriation Act No. 4, 2008–2009.

If a loan made under the Minister's guarantee goes into default, the lender has recourse to the Minister for reimbursement. In 1987, a reserve for losses of $2 million per annum was established within the department's reference levels to cover all Guarantee Loan Programs administered by Indian Affairs and Northern Development. Such payments remain a debt of the First Nation to the Crown and interest is accrued and capitalized on these debts at the contract interest rate applicable at the time the loan was assigned to the Minister. Recovery of the debt is made to the extent possible, from the security used as collateral, such as land claim funds, or through repayment agreements.

Stoney Band Perpetual Loan

In 1946, loans were made to Stoney Band of Alberta (Band) for land acquisition beyond their treaty entitlement.

A loan not exceeding $500,000 was made to purchase additional land. Under the terms of the agreement, as stated in Treasury Board Minutes, P.C. 2/1437 dated April 11, 1946, the Band assigned monies accruing to them, from the rental of their water resources, to provide interest payments at the rate of 3 per cent annually on the amount of the loan that had actually been expended. In the same agreement, the Band resolved that the Department allots $200,000 to the Pekisko Group, and $300,000 for the additions to Morley Reserve.

Manufacturing, processing and service industries in Canada

This account records loans made to persons engaged or about to engage or assist in manufacturing, processing or service industries in Canada in order to promote the establishment, improvement, growth, efficiency or international competitiveness of such industries or to assist them in their financial restructuring.

Loans are authorized by Industry Vote L20, Appropriation Act No. 2. During the year, no loans were issued.

There is one remaining loan which is interest free unless it goes into default, and otherwise is repayable at maturity on April 1, 2017.

Other business loans

This account records money owed to the Government by borrowers upon default of loans that are subject to statutory authorities, pursuant to the Small Business Loans Act, the Canada Small Business Financing Act, the capital leasing pilot project and the Department of Industry Act. These authorities provide for the payment of claims or the sharing of loan losses between lenders and the Government.

H.L. Holmes Fund

This account was established pursuant to paragraph 5(1)(f) of the National Research Council Act to record the residue of the estate of H.L. Holmes. Up to two thirds of the yearly net income from the fund shall be used to finance the H.L. Holmes Award on an annual basis. These awards will provide the opportunity to post-doctoral students to study at world famous graduate schools or research institutes under outstanding research persons.

Nordion International Inc.

A $100 million loan has been made to Nordion International Inc. for the construction of two nuclear reactors and related processing facilities to be used in the production of medical isotopes pursuant to an agreement reached on June 28, 1996 between MDS Health Group Ltd., Nordion International Inc. and Natural Resources Canada.

The secured loan was interest-free and fully repayable over 15 years commencing 42 months after the first loan drawdown was made. The final repayment was received on April 1, 2015.

During the year, the account was closed.

Seized Property Working Capital Account

This account was established by Section 12 of the Seized Property Management Act. Expenses incurred, and advances made, to maintain and manage any seized or restrained property and other properties subject to a management order or forfeited to Her Majesty, are charged to this account. This account is credited when expenses and advances to third parties are repaid or recovered and when revenues from these properties or proceeds of their disposal are received and credited with seized cash upon forfeiture.

The total amount authorized to be outstanding at any time is $50,000,000.

Any shortfall between the proceeds from the disposition of any property forfeited to Her Majesty and the amounts that were charged to this account and that are still outstanding, is charged to a Seized Property Proceeds Account and credited to this account.

Greater Victoria Harbour Authority

The Victoria Harbour loan receivable relates to the sale of a parcel of Victoria Harbour land. A discount of $356,131 is recorded to reflect the concessionary nature of the loan.

The loan bears interest at the rate of 4.9 per cent per annum, and is repayable over 15 years, with the final instalment on May 9, 2020.

St. Lawrence Seaway Management Corporation

This account was established by subsection 80(1) of the Canada Marine Act. Loans previously managed by the St. Lawrence Seaway Authority are now managed by the St. Lawrence Seaway Management Corporation in accordance with an agreement between the Department of Transport and the Corporation. The repayments of these loans are recorded in this account.

The loan bore interest at a rate of prime plus 2.0 per cent per annum. The final instalment of the existing terms was anticipated for March 2013. During the year 2014, a reclassification was done to transfer the accumulated interest to the capital portion.

As of March 31, 2016, the remaining amount of this loan is deemed unrecoverable and parliamentary authority is required to write-off the balance.

Federal Public Service Health Care Administration Authority

The Federal Public Service Health Care Plan Administration Authority (referred to as the Administration Authority) was incorporated, without share capital, under subsection 7.2(1) of the Financial Administration Act effective May 1, 2007. Effective May 31, 2007, the assets and liabilities of the Public Service Health Care Plan (PSHCP) were transferred to the Government of Canada and to the Administration Authority as directed by the President of the Treasury Board of Canada and consistent with the Trust Agreement, which terminated May 31, 2007.

The Administration Authority is charged with the administration of the PSHCP. Its objective is to ensure that benefits and services to Plan members and their covered dependents, as defined in the PSHCP documentation, are delivered in a manner that ensures the effective and efficient administration of the PSHCP. Payments are made to the Administration Authority under Vote 20 and are authorized under the terms of reference of the funding agreement between the President of the Treasury Board and the Administration Authority. The funding agreement allows for the transfer of funds from the Treasury Board of Canada Secretariat to the Administration Authority in four quarterly instalments upon approval of the operating budget by the Secretary of the Treasury Board of Canada. These quarterly instalments are made in advance and actual expenses are recorded upon approval of the Administration Authority's Quarterly Financial Report.

Joint Learning Program

Advances have been made to the Public Service Alliance of Canada (PSAC) for the Joint Learning Program (JLP). Following the collective bargaining round of October 2004, 2008 and subsequently of 2010, a Memorandum of Understanding between the Treasury Board and PSAC was included in the collective bargaining agreements to provide funding for a JLP. The JLP is a negotiated partnership between PSAC and the Treasury Board of Canada Secretariat (TBS).The objective of the JLP is to improve labour relations in the public service. It is intended to provide joint union-management learning opportunities in areas where both parties have roles and responsibilities, and for which the employer does not already have a legal obligation to provide training.

Payments are made to PSAC under Vote 20 and are authorized under the terms of reference of the Program. The terms of reference include the program costs, funding conditions, payment conditions, timelines, as well as a schedule of payments. The schedule of payments provides for a 3-month advance from TBS to PSAC to provide for program delivery costs. When actual expenses are reported every three months, the advance is reversed and the expenditure is recorded.

Commonwealth War Graves Commission

Advances have been made to the working capital fund of the Commonwealth War Graves Commission, to maintain graves and cemeteries.

At year end, the balance of the advances was 30,000 GBP. This balance was converted to Canadian dollars, using the year-end rate of exchange. The advances are non-interest bearing and have no fixed terms of repayments.

Veterans' Land Fund

Advances

Advances have been made, under Parts I and III of the Veterans' Land Act, for the acquisition of land, permanent improvements, removal of encumbrances, purchase of stock and equipment, and protection of security. The total amount authorized to be outstanding at any time is $605,000,000.

Allowance for conditional benefits

A provision equal to 1/10 of the benefits to veterans was established each year up to and including 1978–1979. Since that time, a forecast of requirements has been performed each year, and provisions are established as necessary. These provisions are charged to expenses and credited to the allowance for conditional benefits account. This account represents the accumulated net provisions for benefits to veterans in the form of forgiveness of loans authorized by the Veterans' Land Act. These benefits come into effect only after certain conditions are fulfilled by the veterans. At the end of 10 years, the conditions having been met, the accumulated provision is charged to the allowance for conditional benefits account, and credited to the veteran's loan account.

Other departments—Transition payments—Pay in arrears

During the 2014–2015 fiscal year, a one-time payment was issued to employees as a result of the implementation of pay in arrears. This amount will be recovered from the employees upon their departure from the public service. The amount at year-end represents the balance to be recovered in the future.

Other departments—Miscellaneous

This account represents amounts outstanding in the hands of agencies and individuals, at year end. This group records loans, investments and advances not classified elsewhere.

Consolidation adjustment

The consolidation adjustment reflects the total loans, investments and advances held by consolidated Crown corporations and other entities. These mainly include investments such as bonds, money market funds and fixed income securities.

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