Canadian Pari-Mutuel Agency Revolving Fund

Public Accounts of Canada 2025 Volume III—Top of the page Navigation

Statement of management responsibility

We have prepared the accompanying financial statements of the Canadian Pari-Mutuel Agency Revolving Fund as required by and in accordance with the Treasury Board Directive on Charging and Special Financial Authorities and with the Receiver General reporting requirements. 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 financial statements, on a basis consistent with that of the preceding year.

Responsibility for the integrity and objectivity of these financial statements rests with the management of the Fund. The information included in these financial statements is based on management's best estimates and judgement with due consideration given to materiality. To fulfil 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 Results Report is consistent with that in these financial statements.

The Fund's Corporate Services 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 assure the objectivity and integrity of data in its financial statements by 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.

Management has presented the financial statements to an external auditing firm, which has audited them and has provided an independent opinion that has been appended to these financial statements.

Approved by:

Lisa Foss
Executive Director
Canadian Pari-Mutuel Agency

Shawn Audette
Director General
Financial Management and Strategic Reporting
Deputy Chief Financial Officer

Alain Lagacé
Assistant Deputy Minister
Corporate Management
Chief Financial Officer

June 11, 2025
Ottawa, Ontario

**Table 1:Statement of authority provided (used) (unaudited) for the year ended March 31, 2025**^{Links to footnote * in Table 1}
(in thousands of dollars)
	Estimates^{Links to footnote 1 in Table 1}	Actual	Estimates^{Links to footnote 1 in Table 1}	Actual
	2025		2024
Net results	(negative 2,748)	(negative 1,480)	(negative 936)	(negative 743)
Items not requiring use of funds	109	109	106	106
Operating source (use) of funds	(negative 2,639)	(negative 1,371)	(negative 830)	(negative 637)
Items requiring use of funds
Net tangible capital assets acquisitions	(negative 1,144)	(negative 110)	(negative 532)	(negative 473)
Net other assets and liabilities	–	(negative 471)	–	(negative 157)
Authority provided (used)	(negative 3,783)	(negative 1,952)	(negative 1,362)	(negative 1,267)
Table 1 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 1 Table note 1 The amounts in the current and previous year "Estimates" columns result from, when available, the current year's Estimates, Part II—Main Estimates. Return to table note 1 referrer in Table 1

**Table 2:Reconciliation of unused authority (unaudited) as at March 31, 2025**
(in thousands of dollars)
	2025	2024
Debit balance in the accumulated net charge against the Fund's authority	5,584	7,435
Payables charged against the appropriation at year-end	(negative 676)	(negative 753)
Receivables credited to the appropriation at year-end	(negative 174)	4
Net authority provided (used), end of year	4,734	6,686
Authority limit	2,000	2,000
Unused authority carried forward	6,734	8,686

Independent auditor's report

To the Assistant Deputy Minister, Corporate Management (Chief Financial Officer), Agriculture and Agri-Food Canada

Our opinion

In our opinion, the accompanying financial statements of the Canadian Pari-Mutuel Agency Revolving Fund (the Fund) as at March 31, 2025 and for the year then ended are prepared, in all material respects, in accordance with the basis of accounting described in note 2 to the financial statements.

What we have audited

The Fund's financial statements comprise:

the statement of financial position as at March 31, 2025;
the statement of operations and net assets for the year then ended;
the statement of cash flows for the year then ended; and
the notes to the financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Emphasis of matter—basis of accounting and restriction on use

We draw attention to note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Fund to meet the requirements of Section 1 of the Receiver General for Canada Instructions for Volume III of the Public Accounts of Canada. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Fund, Agriculture and Agri-Food Canada, the Treasury Board of Canada Secretariat and the Receiver General for Canada. We neither assume nor accept any responsibility or liability to any third party, other than to Agriculture and Agri-Food Canada, the Treasury Board of Canada Secretariat and the Receiver General for Canada, in respect of this report. Our opinion is not modified in respect of this matter.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation of the financial statements in accordance with the basis of accounting described in note 2 to the financial statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Fund's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Fund's financial reporting process.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Fund's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers LLP
Chartered Professional Accountants,
Licensed Public Accountants

Ottawa, Ontario
June 11, 2025

**Table 3:Statement of financial position as at March 31, 2025**
(in thousands of dollars)
Assets Assets
	2025	2024
Financial assets
Accounts receivable (note 3)	693	407
Total financial assets	693	407
Non-financial assets
Tangible capital assets (note 4)	3,043	3,042
Total assets	3,736	3,449
Liabilities and net assets
Liabilities
Accounts payable and accrued liabilities (note 5)	676	753
Vacation pay	230	237
Obligation for employee future benefits	37	37
Total liabilities	943	1,027
Net assets (note 6)	2,793	2,422
Net financial position of the Fund	3,736	3,449
Table 3 notes General notes: Contractual obligations (note 7) Contingent liabilities (note 8) Economic dependence (note 9) The accompanying notes are an integral part of these financial statements.

Approved by:

Alain Lagacé
Chief Financial Officer

**Table 4:Statement of operations and net assets for the year ended March 31, 2025**
(in thousands of dollars)
Revenues
	2025	2024
Pari-mutuel levy	8,027	8,472
Operating expenses
Salaries and employee benefits	3,972	3,667
Professional and special services
Drug control	4,044	4,060
Other	629	549
Utilities, materials and supplies	252	291
Transportation and telecommunications	228	208
Rentals	141	214
Repairs and maintenance	132	120
Amortization of tangible capital assets	109	106
Total expenses	9,507	9,215
Net results	(negative 1,480)	(negative 743)
Net assets, beginning of year	2,422	2,116
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year	1,851	1,049
Net assets, end of year	2,793	2,422
Table 4 notes General notes: The accompanying notes are an integral part of these financial statements.

**Table 5:Statement of cash flows for the year ended March 31, 2025**
(in thousands of dollars)
Operating activities
	2025	2024
Net results	(negative 1,480)	(negative 743)
Items not requiring use of funds
Amortization of tangible capital assets	109	106
Subtotal	(negative 1,371)	(negative 637)
Variations in statement of financial position
Increase in accounts receivable	(negative 286)	(negative 143)
Increase (decrease) in accounts payable and accrued liabilities	(negative 77)	218
Decrease in vacation pay	(negative 7)	(negative 14)
Net financial resources used by operating activities	(negative 1,741)	(negative 576)
Capital investing activities
Acquisition of tangible capital assets	(negative 110)	(negative 473)
Net financial resources used by capital investing activities	(negative 110)	(negative 473)
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year	(negative 1,851)	(negative 1,049)
Accumulated net charge against the Fund's authority, beginning of year	7,435	8,484
Accumulated net charge against the Fund's authority, end of year	5,584	7,435
Table 5 notes General notes: The accompanying notes are an integral part of these financial statements.

Notes to the financial statements for the year ended March 31, 2024

1. Authority and purpose

The Canadian Pari-Mutuel Agency Revolving Fund (the Fund) was established under Appropriation Act No. 1, 1970, which authorized the operation of the Fund in the current and subsequent fiscal years in accordance with terms and conditions prescribed by the Treasury Board of Canada (Treasury Board) for the purpose of providing race track supervision in Canada. The Appropriation Act No. 1, 1970 was repealed and replaced by Section 2 of the Revolving Funds Act in 1985.

The Fund has a continuing non-lapsing authority from the Parliament of Canada to make payments out of the Consolidated Revenue Fund of the Government of Canada for working capital, tangible capital asset acquisitions and temporary financing of accumulated operating deficits, the total of which is not to exceed $2,000,000 at any time.

The Fund's mandate is to regulate and supervise pari-mutuel betting at racetracks across Canada, thereby ensuring that pari-mutuel betting is conducted in a way that is fair to the betting public.

The Fund is not subject to income tax under the provisions of the Income Tax Act.

2. Summary of significant accounting policies

The financial statements have been prepared in accordance with the reporting requirements of the Receiver General for Canada for revolving funds. The basis of accounting used in these financial statements differs from Canadian public sector accounting standards because:

the net debt indicator and the statement of change in net debt are not presented in the financial statements;
expenses are reported by type in the statement of operations and net assets and not by function or major program;
budgeted expenses are not disclosed in the statement of operations and net assets;
the services received without charge from other government departments and agencies are not reported as expenses and;
no liability is recorded for sick leave.

The significant accounting policies are as follows:

(a) Revenue recognition

Pari-mutuel levy revenues are generated through a levy of 0.8% applied to every dollar bet at Canadian racetracks and are recognized as bets are made.

(b) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables when a recovery is considered uncertain.

(c) Tangible capital assets

Tangible capital assets are recorded at cost and are amortized on a straight-line basis over their estimated useful lives, as follows:

**Depreciation policy**
Furniture and equipment	10 to 15 years
Computer hardware and software	3 to 5 years
Automotive	8 to 10 years
Buildings	20 to 25 years
Assets under construction	Once in service, in accordance with asset class
Leasehold improvements	Lesser of the remaining period of the occupancy instrument or useful life of the improvement

(d) Vacation pay

Vacation pay is expensed as the benefits accrue to employees under their respective terms of employment.

(e) Employee future benefits

Pension benefits

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

Severance benefits

The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.

(f) Sick leave

Employees are permitted to accumulate unused sick leave. However, such leave entitlements may only be used in the event of an illness. Unused sick leave on 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.

(g) 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 disclosure of contingent assets and liabilities 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 the obligation for employee future benefits, accrued liabilities, the allowance for doubtful accounts and the estimated useful lives of tangible capital assets. Actual results could differ from those estimates. The estimates are reviewed annually and as adjustments become necessary, they are recorded in the financial statements in the year in which they become known.

3. Accounts receivable

**Table 7:Accounts receivable**
(in thousands of dollars)
	2025	2024
Government of Canada	50	44
Outside parties	643	363
Total	693	407

4. Tangible capital assets

**Table 8:Cost**^{Links to footnote * in Table 8}
(in thousands of dollars)
	Balance at beginning of year	Acquisitions	Write-offs	Balance at end of year
Furniture and equipment	1,771	–	–	1,771
Computer hardware and software ^{Links to footnote 1 in Table 8}	3,644	110	–	3,754
Automotive	153	–	–	153
Buildings	818	–	–	818
Land	98	–	–	98
Leasehold improvements	816	–	–	816
Total	7,300	110	–	7,410
Table 8 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 8 Table note 1 Included in the computer hardware and software costs are assets in the amount of $2,496,149 (2024—$2,385,151) that were not placed into services as at March 31, 2025, as these assets are still under development. Return to table note 1 referrer in Table 8

**Table 9:Accumulated amortization**^{Links to footnote * in Table 9}
(in thousands of dollars)
	Balance at beginning of year	Acquisitions	Write-offs	Balance at end of year
Furniture and equipment	1,531	90	–	1,621
Computer hardware and software	1,259	–	–	1,259
Automotive	117	7	–	124
Buildings	535	12	–	547
Leasehold improvements	816	–	–	816
Total	4,258	109	–	4,367
Table 9 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 9

**Table 10:Net book value**^{Links to footnote * in Table 10}
(in thousands of dollars)
	2025	2024
Furniture and equipment	150	240
Computer hardware and software	2,495	2,385
Automotive	29	36
Buildings	271	283
Land	98	98
Leasehold improvements	–	–
Total	3,043	3,042
Table 10 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 10

5. Accounts payable and accrued liabilities

**Table 11:Accounts payable and accrued liabilities**
(in thousands of dollars)
	2025	2024
Government of Canada	228	375
Outside parties	448	378
Total	676	753

6. Net assets

The net assests of the Fund include the accumulated surplus of each fiscal year's net results and the absorption of the opening net assets on establishment of the Fund.

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

**Table 12:Net assets**
(in thousands of dollars)
	2025	2024
Accumulated surplus, beginning of year	9,857	10,600
Net results	(negative 1,480)	(negative 743)
Accumulated surplus, end of year	8,377	9,857
Accumulated net charge against the Fund's authority, beginning of year	(negative 7,435)	(negative 8,484)
Net financial resources used and change in the accumulated net charge against the Fund's authority, during the year	1,851	1,049
Accumulated net charge against the Fund's authority, end of year	(negative 5,584)	(negative 7,435)
Net assets, end of year	2,793	2,422

7. Contractual obligations

The Fund has contractual obligations with respect to a supplier contract for services. Expected future payments arising from contractual obligations are as follows:

**Table 13:Contractual obligations**
(in thousands of dollars)

Fiscal year ending March 31, 2026	141
Fiscal year ending March 31, 2027	141
Fiscal year ending March 31, 2028	141
Fiscal year ending March 31, 2029	141

8. Contingent liabilities

In the normal course of its operations, the Fund may become involved in various legal actions and grievances with financial implications. 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, 2025 and 2024 no liabilities existed or were recorded in the financial statements.

9. Economic dependence

The Fund is funded solely by a federal levy on pari-mutuel betting in Canada on horse racing, a significant portion of which is generated by the largest racetrack in Canada, The Woodbine Racetrack (Woodbine) located in Toronto, Ontario.

Woodbine generated $5,535,014 (2024—$5,910,367) or 69% (2024—70%) of the Fund's total pari-mutuel levy for the year ended March 31, 2025. As at March 31, 2025, $414,999 (2024—$105,741) or 66% (2024—29%) of the Fund's accounts receivable—outside parties were owed from Woodbine.

Public Accounts of Canada 2025 Volume III—Bottom of the page Navigation

Date modified:: 2025-11-07

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