Canadian Grain Commission Revolving Fund

Public Accounts of Canada 2017 Volume III - Top of the page Navigation

Statement of management responsibility

We have prepared the accompanying financial statements of the Canadian Grain Commission Revolving Fund as required by and in accordance with the Policy of Treasury Board on Special Revenue Spending Authorities. These financial statements were prepared by the management of the Fund in accordance with the significant accounting policies set out in note 2 of the statements, on a basis consistent with that of the preceding year. Some previous year's figures have been reclassified to conform to the current year's presentation.

Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. To assure maximum objectivity and freedom from bias, the financial data contained in these financial statements has been examined by the Departmental Audit Committee. The information included in these financial statements is based on management's best estimates and judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, the Fund maintains a set of accounts which provides a centralized record of the Fund's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Performance Report is consistent with these financial statements.

The Canadian Grain Commission's Finance Division develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of accounting and financial management. The Fund maintains systems of financial management and internal control which gives due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized by Parliament, are executed in accordance with prescribed regulations, and are properly recorded to maintain accountability of Government funds and safeguard the assets under the Fund's administration. Financial management and internal control systems are augmented by the maintenance of internal audit programs. The Fund also seeks to ensure the objectivity and integrity of data in its financial statements by the careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility and by communication programs aimed at ensuring that its regulations, policies, standards and managerial authorities are understood throughout the organization.

In order to ensure maximum objectivity and freedom from bias, these financial statements have been examined by the external auditors who have provided an independent opinion as to whether the financial statements present fairly the financial position of the Fund as at March 31, 2017 and the results of operations and the change in financial position for the year. This opinion has been appended to these financial statements.

The accounting system and financial statements of the Fund have evolved over the years to meet changing conditions. The Canadian Grain Commission recently implemented SAP, hosted by the Central Agency Cluster – Shared Services (CAC-SS) run by Treasury Board Secretariat, to collaborate in the interest of more effective and efficient financial management systems and to comply with Government of Canada direction.

Approved by:

Cheryl Blahey
Chief Financial Officer

May 30, 2017
Winnipeg, Canada

Statement of authority provided (used) (unaudited) for the year ended March 31

(in thousands of dollars)

  2017 2016
EstimatesLink to footnote 1 Actual EstimatesLink to footnote 1 Actual
Net results (negative 4,424) 23,797 (negative 2,511) 29,303
Add: items not requiring use of funds 3,737 2,486 3,104 3,394
Operating source (use) of funds (negative 687) 26,283 593 32,697
Less: items requiring use of funds
Net capital acquisitions 7,007 3,576 3,159 1,907
Transition payments for implementing salary payments in arrears 8
Net other assets and liabilities (negative 7,694) (negative 3,195) (negative 2,566) 3,898
Authority provided (used) 25,902 26,884

Reconciliation of unused authority (unaudited) as at March 31

(in thousands of dollars)

  2017 2016
Debit balance in the accumulated net charge against the Fund's authority 118,677 91,086
Payables at year-end charged against the appropriation after March 31 (negative 3,535) (negative 3,257)
Subtotal 115,142 87,829
Amounts credited to the appropriation after March 31 171 41
Other 4,476 6,249
Authority provided 119,789 94,119
Amounts charged for the back office transformation initiative (negative 232)
Net authority provided, end of year 119,789 93,887
Authority limit 2,000 2,000
Unused authority carried forward 121,789 95,887

Independent Auditors' Report

To the Chief Commissioner, Commissioners and the Departmental Audit Committee of Canadian Grain Commission Revolving Fund

We have audited the accompanying financial statements of the Canadian Grain Commission Revolving Fund, which comprise the statement of financial position as at March 31, 2017 and the statements of operations and net assets, and cash flows for the year then ended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information. These financial statements have been prepared by management of the Fund to meet the requirements of section 6.4 of the Treasury Board of Canada's Special Revenue Spending Authorities.

Management's responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with section 6.4 of the Treasury Board of Canada's Policy on Special Revenue Spending Authorities, and for such internal controls as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Canadian Grain Commission Revolving Fund as at March 31, 2017 and the results of its operations and net assets and its cash flows for the year then ended in accordance with section 6.4 of the Treasury Board of Canada's Policy on Special Revenue Spending Authorities.

Basis of accounting and restriction on use

Without modifying our opinion, we draw attention to note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Canadian Grain Commission Revolving Fund to meet the requirements of section 6.4 of the Treasury Board of Canada's Policy on Special Revenue Spending Authorities. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the management of the Canadian Grain Commission Revolving Fund and should not be used by parties other than the Canadian Grain Commission Revolving Fund or the Treasury Board of Canada.

PricewaterhouseCoopers LLP
Chartered Professional Accountants,
Licensed Public Accountants

May 26, 2017
Ottawa, Ontario

Statement of financial position as at March 31

(in thousands of dollars)

  2017 2016
Assets
Financial assets
Cash in transit 3 84
Accounts receivable (note 3) 9,760 11,192
Accountable advances 5 9
Subtotal 9,768 11,285
Non-financial assets
Prepaid expenses 220 119
Tangible capital assets (note 4) 8,963 7,808
Subtotal 9,183 7,927
Total 18,951 19,212
Liabilities and net assets
Liabilities
Accounts payable and accrued liabilities (note 5) 3,237 1,718
Salaries payable (note 6) 6,176 3,688
Vacation, overtime and compensatory leave payable 1,728 1,942
Deferred revenue 835 952
Employee severance benefits liability (note 7) 2,516 2,659
Subtotal 14,492 10,959
Net assets (note 9) 4,459 8,253
Total 18,951 19,212

Approved by:

Patti Miller
Deputy Head

Cheryl Blahey
Chief Financial Officer

Statement of operations and net assets for the year ended March 31

(in thousands of dollars)

  2017 2016
Quality
assurance
Quality
assurance
Grain quality
research
Producer protection Internal service Total Total
Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Actual
Revenue
Fees and services 40,039 64,525 3,721 6,010 7 62 43,760 70,604 71,428
Parliamentary appropriations (note 8) 5,143 5,056 245 245 5,388 5,301 5,612
Optional services 8,080 4,646 391 638 541 19 11 9,012 5,314 5,571
Licensing and producer cars 1,530 1,950 1,530 1,950 1,940
Other revenues 20 20 20 20 84
Subtotal 48,119 69,171 3,721 6,010 5,534 5,701 2,071 2,031 265 276 59,710 83,189 84,635
Expenses
Personnel 20,758 21,425 1,429 1,462 2,884 4,610 2,892 3,136 14,574 10,974 42,537 41,607 38,068
Rentals 2,360 2,705 57 42 1,920 1,475 280 102 1,075 1,602 5,692 5,926 5,772
Transport and communication 1,539 1,417 148 140 223 316 218 240 1,227 1,250 3,355 3,363 3,330
Professional services 277 273 15 11 364 283 21 27 4,404 2,213 5,081 2,807 2,954
Amortization of tangible capital assets 1,392 880 12 130 1,145 899 44 79 1,144 410 3,737 2,398 2,456
Machinery and equipment 662 245 12 203 455 116 16 329 461 1,310 1,189 1,044
Materials and supplies 391 472 9 2 281 417 55 57 61 124 797 1,072 747
Repairs and maintenance 149 134 744 489 1 5 430 56 1,324 684 660
Information 15 2 83 72 55 34 148 222 301 330 301
Other 1 10 11 6
Loss (gain) on disposal of tangible assets 4 1 5 (negative 6)
Subtotal 27,543 27,558 1,670 1,799 7,847 9,016 3,682 3,697 23,392 17,322 64,134 59,392 55,332
Net results 20,576 41,613 2,051 4,211 (negative 2,313) (negative 3,315) (negative 1,611) (negative 1,666) (negative 23,127) (negative 17,046) (negative 4,424) 23,797 29,303
Net assets, beginning of year 8,253 6,760
Transfer of the transition payments for implementing salary payments in arrears (note 13) (negative 8)
Net financial resources used and change in the accumulated net charge against Fund's authority, during the year (negative 27,591) (negative 27,802)
Net assets, end of year 4,459 8,253

Statement of cash flows for the year ended March 31

(in thousands of dollars)

  2017 2016
Operating activities
Net results for the year 23,797 29,303
Items not affecting use of funds
Amortization of tangible capital assets 2,398 2,456
Provision for employee severance benefits 83
Loss (gain) on disposal of tangible capital assets 5 (negative 6)
Subtotal 26,283 31,753
Payments of employee severance benefits (negative 226) (negative 468)
Transition payments for implementing salary payments in arrears (negative 8)
Variations in statement of financial position
Cash in transit 81 723
Accounts receivable 1,432 (negative 2,474)
Accountable advances 4 (negative 2)
Prepaid expenses (negative 101) 149
Accounts payable and accrued liabilities 1,519 (negative 50)
Salaries payable 2,488 (negative 133)
Vacation, overtime and compensatory leave payable (negative 214) 89
Deferred revenue (negative 117) 122
Net financial resources provided by operating activities 31,149 29,701
Capital investing activities
Acquisition of tangible capital assets (negative 3,576) (negative 1,907)
Proceeds from disposal of tangible capital assets 18 8
Net financial resources used by capital investing activities (negative 3,558) (negative 1,899)
Net financial resources provided and change in the accumulated net charge against the Fund's authority, during the year 27,591 27,802
Accumulated net charge against the Fund's authority, beginning of year 91,086 63,284
Accumulated net charge against the Fund's authority, end of year 118,677 91,086

Notes to the financial statements for the year ended March 31, 2017

1. Authority and purpose

The Canadian Grain Commission Revolving Fund ("CGC", the "Revolving Fund" or "the Fund") derives its authority from the Canada Grain Act. The CGC's mandate as set out in the Act is to, in the interest of grain producers, establish and maintain standards of quality for Canadian grain, regulate grain handling in Canada and to ensure a dependable commodity for domestic and export markets.

In order to effectively pursue its mandate, the CGC aims to achieve the following strategic outcome: Canada's grain is safe, reliable and marketable and Canadian grain producers are properly compensated for grain deliveries to licensed grain companies.

The CGC's Program Alignment Architecture has five programs: The Quality Assurance Program, Quantity Assurance Program, Grain Quality Research Program, and Producer Protection Program contribute to making progress to the sole strategic outcome. The Internal Services program supports all other programs within the CGC.

The Canadian Grain Commission Revolving Fund was established under Appropriation Act No. 6, 1994 – 1995. The Fund has a continuing non–lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, tangible capital acquisitions and temporary financing of accumulated operating deficits and drawdown authority of $2,000,000.

The CGC did not request to access its net authority provided from Treasury Board. The CGC received a total of $5,417,701 through the Appropriation Acts approved by Parliament for the fiscal year 2016 – 2017.

Amendments to the Canada Grain Act came into force on August 1, 2013. In response to both legislative changes and restructured user fees, the CGC adjusted its workforce (note 6), organizational design, and operations. A revised funding model also came into effect on August 1, 2013 that is based on full cost recovery through user fees and ongoing appropriations. Until the implementation of this model, the CGC was funded through its ongoing appropriations, fees collected and special appropriation.

In accordance with the Government's policy on self-insurance, the CGC does not carry its own insurance. The CGC is not subject to income tax.

2. Significant accounting policies

The financial statements have been prepared in accordance with accounting standards issued by the Treasury Board of Canada Secretariat and the reporting requirements of the Receiver General for Canada. The basis of accounting used in these financial statements differs from Canadian generally accepted accounting principles because:

The significant accounting policies are as follows:

(a) Use of estimates

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the periods covered by the financial statements. The principal financial statement components, subject to measurement uncertainty, include salaries payable related to unsettled labour contracts, the estimated useful life of capital assets and the liabilities for employee vacation, severance benefits and employee termination benefits. Actual results could differ from those estimates. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

(b) Revenue recognition

Revenue is recognized in the accounting period in which it is earned through the provision of goods or services, or when an event giving rise to a claim has taken place. The majority of service fees such as inspection and weighing activities are dependent on grain volumes handled. Revenues that have been received but not yet earned are presented as deferred revenue. Deferred revenue is primarily received for licensing fees which usually covers a 12-month period.

(c) Expense recognition

Unless otherwise disclosed, expenses are recorded in the period they are incurred.

(d) Cash in transit

Cash in transit includes cash and cheques received prior to March 31 but not deposited until the subsequent year.

(e) Parliamentary appropriation

Operations are funded primarily from a permanent authority from Parliament (Revolving Fund) where the CGC is allowed to spend fees collected. Some of the operations of the Grain Quality Research Program and Internal Audit are funded by ongoing Parliamentary appropriation through their annual votes. These appropriations have been recorded as revenue of the Fund.

(f) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized. Allowances are established for all accounts for which interest or principal payments are 180 days past due and deemed uncollectable.

(g) Tangible capital assets

Certain assets previously under the custody of the Department of Agriculture and Agri-Food Canada were assumed by the revolving fund on April 1, 1995. The assumed assets were considered to be contributed capital and recorded at the Crown's estimated net book value. Assets acquired subsequent to April 1, 1995 were recorded at cost. Proceeds from the disposal of capital assets are retained by the revolving fund.

All capital assets and leasehold improvements with a cost equal to or greater than $10,000 are capitalized at their acquisition cost.

Assets are amortized on a straight-line basis over their estimated useful lives, commencing in the month after they are put into service, as follows:

Scientific equipment 5 years
Office equipment and furniture 5 years
Operational equipment 10 years
Motor vehicles 5 years
Computer equipment and software 3 years
Leasehold improvements 5 years

The costs for assets under construction are capitalized as incurred with amortization commencing in the month after they are put into service.

(h) Vacation, overtime and compensatory leave

Vacation, overtime and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.

(i) Employee severance benefits

Severance benefits accrue to employees over their years of service with the Government of Canada as stipulated in their collective agreements. The CGC provides for the severance entitlements earned by employees. The obligation relating to the benefits earned by employees is calculated using information derived from management's estimate of the liability.

(j) Employee termination benefits

Employees affected by the amendments to the Canada Grain Act and other operational adjustments are entitled to termination benefits, calculated based on salary levels in effect at the time of termination as stipulated in their collective agreements. The obligation is calculated using information derived from management's estimate of the liability.

(k) Pension plan

Employees of the CGC are covered by the Public Service Superannuation Act and the Supplementary Retirement Benefits Act. The Government of Canada's portion of the pension cost is included in the employee benefit charge assessed against the Revolving Fund. The actual payment of the pension is made from the Public Service Superannuation and Supplementary Retirement Benefits Accounts. Current legislation does not require the CGC to make contributions for any actuarial deficiencies of the Public Service Superannuation account.

(l) Sick leave

Employees are permitted to accumulate unused sick leave. However, such leave entitlements do not vest and may only be used in the event of illness. Unused sick leave upon employee termination is not payable to the employee. No amount has been accrued in these financial statements and payments of sick leave benefits are included in current operations as incurred.

3. Accounts receivable

(in thousands of dollars)

  2017 2016
Other government departments and agencies 171 41
Outside parties 9,594 11,156
Subtotal 9,765 11,197
Less: allowance for doubtful accounts from outside parties (negative 5) (negative 5)
Total 9,760 11,192

4. Tangible capital assets

(in thousands of dollars)

  Cost Accumulated amortization Net book value
Opening balance Acquisitions Adjustment Disposal Closing balance Opening balance Amortization Disposal Closing balance 2017 2016
Scientific equipment 14,247 710 (negative 214) 14,743 10,864 1,217 (negative 214) 11,867 2,876 3,383
Office equipment and furniture 190 28 218 190 190 28
Operational equipment 2,579 403 (negative 67) 2,915 888 253 (negative 46) 1,095 1,820 1,691
Motor vehicles 344 43 (negative 41) 346 190 53 (negative 40) 203 143 154
Computer equipment and software 6,112 182 627 6,921 5,340 586 5,926 995 772
Leasehold improvements 3,862 648 4,510 3,163 289 3,452 1,058 699
Assets under construction 1,109 2,210 (negative 1,275) (negative 1) 2,043 2,043 1,109
Total 28,443 3,576 (negative 323) 31,696 20,635 2,398 (negative 300) 22,733 8,963 7,808

5. Accounts payable and accrued liabilities

(in thousands of dollars)

  2017 2016
Other government departments and agencies 1,557 403
Outside parties 1,666 103
Total accounts payable 3,223 506
Accrued liabilities 14 1,062
Security payment 150
Total 3,237 1,718

6. Salaries payable

With the legislative changes to the Canada Grain Act and other operational adjustments, a segment of the CGC work force became eligible for the provision of termination benefits. As a result, the CGC has recorded an obligation for termination benefits as part of salaries payable to reflect the estimated workforce adjustment costs. As the changes were implemented, employees received their termination benefits and there is a portion of these benefits payable in future years.

(in thousands of dollars)

  2017 2016
Employee termination liability, beginning of year 101 1,162
Expense for the year 261 (negative 608)
Benefits paid during the year 3 (negative 453)
Employee termination liability, end of year 365 101
Other salary costs including benefits 5,811 3,587
Salaries payable 6,176 3,688

7. Employee severance benefits liability

The CGC provides severance benefits to its employees based on eligibility, years of service and final salary. These benefits are currently calculated based on the actual severance owed to each employee.

With Budget 2011, the Government of Canada announced its intention to eliminate the ongoing accumulation of severance benefits. All collective agreements for the CGC have been negotiated and severance benefits have ceased to accumulate. Employees were given the option to liquidate immediately or collect upon departure from the public service.

(in thousands of dollars)

  2017 2016
Employee severance benefits liability, beginning of year 2,659 3,127
Expense for the year 83
Benefits paid during the year (negative 226) (negative 468)
Employee severance benefits liability, end of year 2,516 2,659

8. Parliamentary appropriation

The CGC is financed by the Government of Canada through a combination of an ongoing Parliamentary appropriation, authority to re-spend fees collected, accumulated surpluses from prior years and a revolving line of credit of $2,000,000.

The government funding basis is used to recognize transactions affecting Parliamentary appropriations. The statement of operations and net assets is based on accrual accounting. Consequently, items presented in the statement of operations and net assets are not necessarily the same as those provided through appropriations from Parliament. Items recognized in the statement of operations and net assets in one year may be funded through Parliamentary authorities in prior, current, or future years. Accordingly, the CGC has different appropriation authorities for the year on a government funding basis than on an accrual accounting basis. Details on appropriation authorities provided and used are shown in the following tables.

Appropriation authorities provided and used:

(in thousands of dollars)

  2017 2016
Total appropriation funds provided 5,418 5,719
Frozen allotment
Underspent (lapse) (negative 117) (negative 107)
Current year appropriation funds provided and used 5,301 5,612

9. Net assets

Contributed capital represents the value of capital assets financed from capital contributions at the inception of the Fund.

The accumulated surplus is the accumulation of each fiscal year's surplus net of deficits since the inception of the Fund.

The accumulated net charge against the Fund's authority represents the cumulative receipts and disbursements over the life of the Fund.

(in thousands of dollars)

  2017 2016
Contributed capital 4,941 4,941
Accumulated surplus
Opening balance 94,398 65,103
Net results 23,797 29,303
Transfer of the transition payments for implementing salary payments in arrears (negative 8)
Closing balance 118,195 94,398
Accumulated net charge against the Fund's authority
Opening balance (negative 91,086) (negative 63,284)
Change in net resources provided (negative 27,591) (negative 27,802)
Closing balance (negative 118,677) (negative 91,086)
Total net assets 4,459 8,253

10. Contractual obligations

CGC leases its premises under occupancy instruments. An occupancy instrument is a formal agreement between the CGC and Public Services and Procurement Canada, recording the terms and conditions that govern the provision and occupancy of the accommodation. CGC has a total of 15 separate occupancy agreements with various term lengths. Expected future payouts are as follows:

(in thousands of dollars)

2018 4,033
2019 3,882
2020 3,923
2021 3,964
2022 and thereafter 4,286

11. Contingent liabilities

In the normal course of its operations, CGC may become involved in various legal actions. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense is recorded in the financial statements. As at March 31, 2017, two claims are outstanding against CGC, as noted below.

Grievances have been filed against the CGC with respect weekend premiums as stated in a collective agreement. The matters are still to be scheduled for adjudication and the outcome of these claim is not determinable at this time. No accrual for this contingency has been made in the financial statements.

A claim has been filed against the CGC by grain producers who allege losses sustained in the failure of a former licensee. The claim alleges total losses asserted against the CGC at $1,723,636.74, plus interest and costs. The claim is at an early stage of pleadings, and a defence has been filed on behalf of the CGC. The outcome of the claim cannot be determined at this time. No accrual for this contingency has been made in the financial statements.

12. Related party transactions

The CGC is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The CGC enters into transactions with these entities at arm's length in the normal course of business and on normal trade terms.

Services provided by other government departments

During the year, the CGC paid occupancy costs and certain professional services to other government departments or agencies. Employer's health insurance plan contributions and employee benefit plans were also provided by and paid to other government departments. Significant services have been recognized in the CGC statement of operations and net assets as follows:

(in thousands of dollars)

  2017 2016
Employer's contribution to employee benefit plans 7,717 7,390
Occupancy costs 5,208 4,925
Leasehold improvements 26
Professional and special services
Other business and professional services 522 615
Legal services 205 315
Training and education 37 33
Management and consulting 34 152
Translation 312 237
Information services 484
Other services and fees 3
Transportation and communication 413 17
Other 61 5
Total 15,022 13,689

Included in accounts receivable, accounts payable, and salaries payable at year–end are the following amounts with related parties:

(in thousands of dollars)

  2017 2016
Accounts receivable 171 41
Accounts payable 1,557 403
Employer's contribution to employee benefit plans payable 962 644

13. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in 2014 – 2015. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay process. This change to the pay system had no impact on the expenses of the Revolving Fund. However, it did result in the use of authorities by the Revolving Fund and impacted the accumulated net charge against the Fund's authority (ANCAFA).

14. Financial Instruments

The Revolving Fund's financial instruments consist of cash in transit, accounts receivable, accounts payable and accrued liabilities, salaries payable, vacation, overtime and compensatory leave payable, and employee severance benefits. The carrying values of these financial instruments approximate their fair value because of their short terms to maturity, except for employee severance benefits and employee termination benefits which are based on management's best estimate. Unless otherwise noted, it is management's opinion that the Revolving Fund is not exposed to significant interest, currency or credit risk arising from these financial instruments.

Financial instruments that potentially subject the CGC to concentrations of credit risk consist primarily of trade accounts receivable. For the period ended March 31, 2017, six large integrated organizations accounted for $2,935,564 or 88% of the CGC's outside parties receivable balances (2016 — six organizations, $5,183,527 or 93%).

15. Comparative information

Certain comparative figures have been reclassified to conform to the current year's presentation.

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