Optional 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 Optional 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

Dominic Laporte
Senior Assistant Deputy Minister
Procurement 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	103	699	185	1,029
Items not requiring use of funds	177	–	50	–
Operating source (use) of funds	280	699	235	1,029
Items requiring use of funds
Transfer of salary overpayments between government departments	–	4	–	–
Net other assets and liabilities	(negative 177)	2,117	(negative 50)	6,681
Authority provided (used)	103	2,820	185	7,710
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	35,021	32,280
Payables charged against the appropriation at year-end	(negative 22,889)	(negative 22,912)
Receivables credited to the appropriation at year-end	2,608	2,266
Other items	(negative 606)	(negative 320)
Net authority provided (used), end of year	14,134	11,314
Authority limit (note 1)	45,000	45,000
Unused authority carried forward	59,134	56,314

**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	1	–
Accounts receivable (note 3)	3,181	5,297
Sales tax refundable and other advances	64	77
Total financial assets	3,246	5,374
Liabilities
Accounts payable and accrued liabilities (note 4)	22,889	23,029
Vacation pay and compensatory leave	213	176
Employee severance benefits (note 5)	63	50
Total liabilities	23,165	23,255
Net liabilities (note 6)	(negative 19,919)	(negative 17,881)
Total	3,246	5,374
Table 3 notes General notes: Contractual obligations (note 7) 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**^{Links to footnote * in Table 4}
(in thousands of dollars)
Revenues
	2025	2024
Travel and relocation-related services	43,326	13,806
Communication procurement services	3,772	3,134
Vaccines and drugs	182	190
Interest on accounts receivable	53	78
Total revenues	47,333	17,208
Cost of sales	(negative 41,082)	(negative 11,169)
Gross profit	6,251	6,039
Operating expenses
Salaries and employee benefits	3,461	2,725
Corporate and administrative services	1,504	1,490
Professional and special services	450	780
Other expenses	124	17
Employee severance benefits (note 5)	13	(negative 2)
Total operating expenses	5,552	5,010
Net results	699	1,029
Net (liabilities) assets, beginning of year	(negative 17,881)	8,134
Transfer of salary overpayments between government departments	4	–
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year (note 6)	(negative 2,741)	(negative 27,044)
Net liabilities, end of year (note 6)	(negative 19,919)	(negative 17,881)
Table 4 notes General notes: 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 4

**Table 5:Statement of cash flows (unaudited) for the year ended March 31, 2025**^{Links to footnote * in Table 5}
(in thousands of dollars)
Operating activities
	2025	2024
Net results	699	1,029
Variations in statement of financial position
Decrease (increase) in cash in transit	(negative 1)	–
Decrease (increase) in accounts receivable	2,116	4,191
Decrease (increase) in sales tax refundable and other advances	13	(negative 17)
Increase (decrease) in accounts payable and accrued liabilities	(negative 140)	21,803
Increase (decrease) in vacation pay and compensatory leave	37	40
Increase (decrease) in employee severance benefits	13	(negative 2)
Total variation in statement of financial position	2,038	26,015
Transfer of salary overpayments between government departments	4	–
Net financial resources provided (used) and change in the accumulated net charge against the Fund's authority, during the year (note 6)	2,741	27,044
Accumulated net charge against the Fund's authority, beginning of year	32,280	5,236
Accumulated net charge against the Fund's authority, end of year	35,021	32,280
Table 5 notes General notes: 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 5

Notes to the financial statements (unaudited) for the year ended March 31, 2025

1. Authority and purpose

The Optional Services Revolving Fund (the Fund) is the funding mechanism to deliver specialized services to federal departments, agencies and provincial and territorial governments. The Fund procures vaccines and drugs, zero-emission vehicles, and provides travel and relocation-related services, as well as communication procurement services. The Fund was established under the Appropriation Act No. 4, 1991–1992 which was repealed in 1996 and replaced by section 5.5 of the Revolving Funds Act.

The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for the purposes of working capital, capital acquisitions and the temporary financing of accumulated operating deficits, the total of which is not to exceed $45,000,000 at any time. Previously at $35,000,000, the authority limit was increased to $45,000,000 in 2023–2024 through the Appropriation Act No. 4, 2023-24. This adjustment is associated with the introduction of a new procurement activity for federal departments and agencies related to zero-emission vehicles, in support of the Greening Government Strategy.

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 assets (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, 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 when performance obligations are satisfied and collection is reasonably certain, as describe below:

Vaccines and drugs revenue consists of annual fees charged to provincial and territorial governments, which are recognized in the year they are earned. No revenues are recognized for the procurement of vaccines and drugs, as the Fund acts as an agent in these transactions. The Fund does not have the controls over purchased vaccines and drugs prior to delivery to federal departments, agencies and provincial and territorial governments, as the suppliers remain primary responsible for providing the vaccines and drugs directly to clients. Accordingly, revenues related to the procurement service of vaccines and drugs are recognized on a net basis, with the Fund's revenues reflecting only the annual fees it earns.

Travel and relocation-related services revenue consist of fees charged on relocation costs, fees related to the accommodation and car rental directory, and fees charged to carriers on transportation costs services. Revenues are recognized when services are rendered.

Revenue earned on communication procurement services consist of fees charged to departments based on the value of contract awarded. Revenue is recognized when services are rendered using the completed contract method.

The Fund provides procurement service related to the purchasing of zero-emission vehicles on behalf of federal departments and agencies. The vehicles are procured through the use of the Fund and their costs are invoiced back to federal departments and agencies. No fees are charged and as such, no revenues are recognized for this service.

(b) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized. An allowance is made on receivables 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 terms 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) 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 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**^{Links to footnote * in Table 6}
(in thousands of dollars)
	2025	2024
Outside parties	592	3,044
Other government departments and agencies	2,608	2,266
Subtotal	3,200	5,310
Allowance for doubtful accounts on receivables from outside parties	(negative 19)	(negative 13)
Net accounts receivable	3,181	5,297
Table 6 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 6

4. Accounts payable and accrued liabilities

**Table 7:Accounts payable and accrued liabilities**^{Links to footnote * in Table 7}
(in thousands of dollars)
	2025	2024
Outside parties	22,822	22,847
Other government departments and agencies	67	65
Subtotal	22,889	22,912
Accrued liabilities	–	117
Total accounts payable and accrued liabilities	22,889	23,029
Table 7 notes Table note * The dash means that the amount is 0 or is rounded to 0. Return to table note * referrer in Table 7

5. 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 8:Employee severance benefits**
(in thousands of dollars)
	2025	2024
Employee severance benefits obligation, beginning of year	50	52
Expense for the year	13	(negative 2)
Employee severance benefits obligation, end of year	63	50

6. 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 (ANCAFA) represents the cumulative receipts and disbursements over the life of the Fund.

**Table 9:Net liabilities**^{Links to footnote * in Table 9}
(in thousands of dollars)
	2025	2024
Accumulated surplus, beginning of year	14,399	13,370
Net results	699	1,029
Transfer of salary overpayments between government departments	4	–
Accumulated surplus, end of year	15,102	14,399
Accumulated net charge against the Fund's authority, beginning of year	(negative 32,280)	(negative 5,236)
Net financial resources used (provided) and change in the accumulated net charge against the Fund's authority, during the year	(negative 2,741)	(negative 27,044)
Accumulated net charge against the Fund's authority, end of year	(negative 35,021)	(negative 32,280)
Net liabilities, end of year	(negative 19,919)	(negative 17,881)
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

7. 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 are as follows:

**Table 10:Contractual obligations**^{Links to footnote * in Table 10}
(in thousands of dollars)
Year ending March 31

2026	210
2027	72
2028	–
2029	–
2030 and thereafter	–
Total contractual obligations	282
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

8. 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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