Defence Production Revolving Fund

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Statement of management responsibility

We have prepared the accompanying financial statements of the Defence Production Revolving Fund (the "Fund") as required by and in accordance with the Policy of Treasury Board on Special Revenue Spending Authorities and the reporting requirements of the Receiver General for Canada.

There were no financial transactions in the Fund during the year ended March 31, 2016.

Approved by:

Julie Charron, CPA, CA
A/Chief Financial Officer,
Public Works and Government Services Canada

Lisa Campbell
Assistant Deputy Minister,
Defence Procurement
Acquisitions Branch
Public Works and Government Services Canada

May 27, 2016
Gatineau, Canada

Defence Production Revolving Fund

Reconciliation of unused authority (unaudited) as at March 31—Defence Production Revolving Fund

Table summary

The table presents on a comparative basis the reconciliation of unused authority (unaudited). It consists of three columns: item descriptions, current year and previous year. Totals are displayed at unused authority carried forward.

(in thousands of dollars)

  2016 2015
Joint authority limit (Note 1) 100,000 100,000
Net authority available for the Fund's account 100,000 100,000
Unused authority carried forward 100,000 100,000

Defence Production Loan Account

Reconciliation of unused authority (unaudited) as at March 31—Defence Production Loan Account

Table summary

The table presents on a comparative basis the reconciliation of unused authority (unaudited) related to the loan account. It consists of three columns: item descriptions, current year and previous year. Totals are displayed at unused authority carried forward, showing a zero balance for both years.

(in thousands of dollars)

  2016 2015
Joint authority limit (Note 1) 100,000 100,000
Authority limit applied to the Defence Production Revolving Fund (negative 100,000) (negative 100,000)
Unused authority carried forward

Notes to the financial statements (unaudited) for the year ended March 31, 2016

1. Authority and purpose

The Defence Production Revolving Fund (the "Fund") was established by Section 15 of the Defence Production Act. It was established in 1951 for the purpose of:

  1. financing the stockpiling of defence supplies or strategic materials;
  2. making loans or advances to aid in defence procurement, such as working capital loans for advance payments on contracts, but not including loans or advance payments for capital purposes; and
  3. permitting initial payments for defence supplies which can be promptly billed to a Government department, agency or an associated government in advance of delivery of goods.

The Adjustment of Accounts Act (S.C. 1980, c.17) had the effect of creating a separate Defence Production loan account for loans or advances authorized under the Defence Production Act, item (b) above.

The Fund and the Defence Production loan account have a joint continuing non-lapsing authority from the Parliament to make payments out of the Consolidated Revenue Fund, the total of which is not to exceed $100 million at any time.

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