Real Property Services 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 Real Property Services Revolving Fund as required by the Treasury Board Directive on Charging and Special Financial Authorities in accordance 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 judgment with due consideration given to materiality. To fulfill its accounting and reporting responsibilities, management 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 these financial statements.

Management develops and disseminates financial management and accounting policies and issues specific directives which maintain standards of accounting and financial management. Management maintains systems of financial management and internal control which give due consideration to costs, benefits and risks. They are designed to provide reasonable assurance that transactions are properly authorized, 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. Management 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.

Approved by:

MIchael Hammond, CPA
Chief Financial Officer and Assistant Deputy Minister
Finance Branch
Public Services and Procurement Canada

Mark Quinlan
Senior Assistant Deputy Minister,
Real Property Services Branch
Public Services and Procurement Canada

June 13, 2025
Gatineau, Canada

**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 6,300)	(negative 17,418)	(negative 5,800)	(negative 24,698)
Operating source (use) of funds	(negative 6,300)	(negative 17,418)	(negative 5,800)	(negative 24,698)
Items requiring use of funds
Transfer of salary overpayments between government departments	–	(negative 21)	–	(negative 80)
Net other assets and liabilities	(negative 14,500)	(negative 3,707)	2,300	(negative 7,187)
Authority provided (used)	(negative 20,800)	(negative 21,146)	(negative 3,500)	(negative 31,965)
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	262,707	311,186
Payables charged against the appropriation at year-end	(negative 441,618)	(negative 525,243)
Receivables credited to the appropriation at year-end	211,554	258,480
Other items	31,155	40,521
Net authority provided (used), end of year	63,798	84,944
Authority limit (note 1)	150,000	150,000
Unused authority carried forward	213,798	234,944

**Table 3:Statement of financial position (unaudited) as at March 31, 2025**^{Links to footnote * in Table 3}
(in thousands of dollars)
Assets
	2025	2024
Financial assets
Cash in transit	–	18
Accounts receivable (note 3)	221,126	268,955
Other assets (note 4)	39,522	45,933
Total financial assets	260,648	314,906
Non-financial assets
Prepaid expenses	272	26
Total assets	260,920	314,932
Liabilities
Accounts payable and accrued liabilities (note 5)	441,619	529,044
Vacation pay and compensatory leave	25,828	23,812
Contractors' security deposits	185	416
Employee severance benefits (note 6)	9,462	8,874
Total liabilities	477,094	562,146
Net liabilities (note 7)	(negative 216,174)	(negative 247,214)
Total	260,920	314,932
Table 3 notes General notes: Contractual obligations (note 8) Contingent liabilities (note 9) The accompanying notes form an integral part of these financial statements. Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 3

**Table 4:Statement of operations and net liabilities (unaudited) for the year ended March 31, 2025**
(in thousands of dollars)
Revenues
	2025	2024
Real Property services—other government departments	2,214,410	2,093,571
Real Property services—Public Services and Procurement Canada portfolio	374,166	344,492
Other revenues	953	3,477
Total revenues	2,589,529	2,441,540
Cost of sales	(negative 1,974,095)	(negative 1,867,853)
Gross profit	615,434	573,687
Operating expenses
Salaries and employee benefits	480,369	455,629
Corporate and administrative services	96,474	84,408
Occupancy costs	22,828	21,039
Professional and special services	19,466	21,148
Transportation and telecommunications	5,922	5,786
Utilities, materials and supplies	4,237	3,489
Employee severance benefits (note 6)	2,236	1,144
Other expenses	1,320	5,742
Total operating expenses	632,852	598,385
Net results	(negative 17,418)	(negative 24,698)
Net liabilities, beginning of year	(negative 247,214)	(negative 121,061)
Transfer of salary overpayments between government departments	(negative 21)	(negative 80)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year (note 7)	48,479	(negative 101,375)
Net liabilities, end of year (note 7)	(negative 216,174)	(negative 247,214)
Table 4 notes General notes: The accompanying notes form an integral part of these financial statements.

**Table 5:Statement of cash flows (unaudited) for the year ended March 31, 2025**
(in thousands of dollars)
Operating activities
	2025	2024
Net results	(negative 17,418)	(negative 24,698)
Variations in statement of financial position
Decrease (increase) in cash in transit	18	(negative 3)
Decrease (increase) in accounts receivable	47,829	(negative 54,869)
Decrease (increase) in other assets	6,411	(negative 9,440)
Decrease (increase) in prepaid expenses	(negative 246)	(negative 9)
Increase (decrease) in accounts payable and accrued liabilities	(negative 87,425)	190,473
Increase (decrease) in vacation pay and compensatory leave	2,016	(negative 247)
Increase (decrease) in contractors' security deposits	(negative 231)	237
Increase (decrease) in employee severance benefits	588	11
Total variation in statement of financial position	(negative 31,040)	126,153
Transfer of salary overpayments between government departments	(negative 21)	(negative 80)
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority, during the year (note 7)	(negative 48,479)	101,375
Accumulated net charge against the Fund's authority, beginning of year	311,186	209,811
Accumulated net charge against the Fund's authority, end of year	262,707	311,186
Table 5 notes General notes: The accompanying notes form an integral part of these financial statements.

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

1. Authority and purpose

The Real Property Services Revolving Fund (the Fund) is the funding mechanism for the Real Property Services program. This program provides three types of real property services: project delivery services, property and facility management services, and advisory services. These services are provided to the real property portfolio of Public Services and Procurement Canada and to other government departments. Pursuant to the Revolving Funds Act, the program may spend any revenue received in respect of these services and, subject to Treasury Board approval, the aggregate of expenditures shall not at any time exceed the revenues received by more than $150,000,000.

2. Significant accounting policies

These financial statements have been prepared in accordance with the significant accounting policies set out below to comply with the reporting requirements for revolving funds described in Section 1 of the Receiver General for Canada Instructions for Volume III of the Public Accounts of Canada. The basis of accounting used in these financial statements differs from Canadian public sector accounting standards mainly because:

no liability is recorded for sick leave
the net debt indicator and statement of changes in net debt are not presented in the financial statements
budgeted expenses are not disclosed in the Statement of operations and net liabilities
employee severance benefits liability is based on actuarial valuations for the Government as a whole provided by the Treasury Board of Canada Secretariat to management
contractual rights, contingent assets, financial instruments and inter-entity transactions and related parties disclosures are not presented in the financial statements

The significant accounting policies are as follows:

(a) Revenue recognition

Revenues are comprised of revenues earned from non-tax sources. They include exchange transactions where goods or services are provided for consideration where a performance obligation exists. A performance obligation consists of an enforceable promise to provide specific goods or services to a specific client. The Fund's revenue transactions are recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonably expected to be earned again in future years. Revenues are recorded as performance obligations are satisfied and collection is reasonably certain, as follows:

Revenues are recognized when professional and technical services are rendered based on the extent of progress towards completion of project deliverables. The recovery of disbursements in direct relation to the goods or services made on behalf of other government departments, agencies, and outside parties are recognized when costs for goods and services procured from the private sector are incurred by the Fund and the economic benefits associated with the revenue transaction are transferred to the Fund.

(b) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized. An allowance is made for accounts receivable where recovery is considered uncertain.

(c) Expense recognition

All expenses are recorded on an accrual basis in the year they are incurred.

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

(d) 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 of Canada. The Fund's contributions to the Plan are charged to expenses in the year in which they are incurred and represent the total Fund obligation to the Plan. The Fund's responsibility with regard to the Plan is limited to the contributions paid. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

Severance benefits

Eligible employees of the Fund were entitled to severance benefits under labour contracts or conditions of employment. These benefits were earned as the services necessary to earn them were rendered. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(e) Sick leave

Employees are permitted to accumulate unused sick leave. However, such leave entitlements may only be used in the event of an illness. As per current government practice, unused sick leave upon employee termination is not payable to the employee. Accordingly, no liability has been accrued in these financial statements. Payments of sick leave benefits are included in current operations as incurred.

(f) Contingent liabilities

Contingent liabilities are potential liabilities which 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 recorded. However, if the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

(g) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses reported in the financial statements. At the time of preparation of these financial statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the allowance for doubtful accounts on receivables from outside parties, the amount of certain liabilities, the liability for vacation pay and compensatory leave, and the liability for employee severance benefits. Actual results could significantly 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.

3. Accounts receivable

**Table 6:Accounts receivable**
(in thousands of dollars)
	2025	2024
Other government departments and agencies	211,554	258,480
Outside parties	13,050	16,015
Subtotal	224,604	274,495
Allowance for doubtful accounts on receivables from outside parties	(negative 3,478)	(negative 5,540)
Net accounts receivable	221,126	268,955

4. Other assets

**Table 7:Other assets**
(in thousands of dollars)
	2025	2024
Sales tax refundable advances	38,704	45,052
Other advances	818	881
Total other assets	39,522	45,933

5. Accounts payable and accrued liabilities

**Table 8:Accounts payable and accrued liabilities**
(in thousands of dollars)
	2025	2024
Outside parties	427,192	514,202
Other government departments and agencies	14,426	11,041
Subtotal	441,618	525,243
Accrued liabilities	1	3,801
Total accounts payable and accrued liabilities	441,619	529,044

6. Employee severance benefits

The Fund provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment. These severance benefits are not pre-funded. Benefits will be paid by future authorities.

Commencing in 2012, as part of collective agreement negotiations and changes to conditions of employment, the accumulation of severance benefits under the employee severance pay program ceased. The employees were given the option to be immediately paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefits obligation.

Information about the severance benefits, measured as at March 31, is as follows:

**Table 9:Employee severance benefits**
(in thousands of dollars)
	2025	2024
Employee severance benefits obligation, beginning of year	8,874	8,863
Expense for the year	2,236	1,144
Benefits paid during the year	(negative 1,648)	(negative 1,133)
Employee severance benefits obligation, end of year	9,462	8,874

7. Net liabilities

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.

**Table 10:Net liabilities**
(in thousands of dollars)
	2025	2024
Accumulated surplus, beginning of year	63,972	88,750
Net results	(negative 17,418)	(negative 24,698)
Transfer of salary overpayments between government departments	(negative 21)	(negative 80)
Accumulated surplus, end of year	46,533	63,972
Accumulated net charge against the Fund's authority, beginning of year	(negative 311,186)	(negative 209,811)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year	48,479	(negative 101,375)
Accumulated net charge against the Fund's authority, end of year	(negative 262,707)	(negative 311,186)
Net liabilities, end of year	(negative 216,174)	(negative 247,214)

8. Contractual obligations

The nature of the Fund's activities can result in some large multi-year contracts and obligations whereby the Fund will be obligated to make future payments when the goods and services are received. Estimated future payments of significant contractual obligations are as follows:

**Table 11:Contractual obligations**
(in thousands of dollars)
Year ending March 31

2026	1,791,032
2027	211,169
2028	78,494
2029	32,675
2030 and thereafter	293,412
Total contractual obligations	2,406,782

9. Contingent liabilities

Claims have been made against the Fund in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. Claims and litigations for which the outcome is not determinable, and a reasonable estimate can be made by management amount to $0.1 million at March 31, 2025 (Nil in 2023–2024). Settlement, if any, that may be made with respect to these actions, is expected to be accounted for as a charge against income of the applicable years when future events are likely to occur and a reasonable estimate of the loss can be made.

10. Related party transactions

Through common ownership, the Fund is related to all Government of Canada departments, agencies, and Crown corporations. The Fund enters into transactions with these entities in the normal course of business and on normal trade terms.

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

Date modified:: 2025-11-07

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