Audited Financial Statements 2022-23

Office of the Privacy Commissioner of Canada

Statement of Management Responsibility Including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2023 and all information contained in these statements rests with the management of the Office of the Privacy Commissioner of Canada ("The Office"). These financial statements have been prepared by management using the Government’s accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Office’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the Office’s Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Office and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2023 was completed in accordance with the Treasury Board Financial Management Policy and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the Office’s system of internal control was reviewed by the Internal Audit Committee, which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Commissioner.

The Auditor General, the independent auditor for the Government of Canada has expressed an opinion on the fair presentation of the financial statements of the Office of the Privacy Commissioner of Canada which does not include an audit opinion on the annual assessment of the effectiveness of the Office’s internal controls over financial reporting.

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Independent Auditor’s Report

To the Speaker of the House of Commons and the Speaker of the Senate

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the Office of the Privacy Commissioner of Canada (the Office), which comprise the statement of financial position as at 31 March 2023, and the statement of operations and net financial position, statement of change in net debt and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Office as at 31 March 2023, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

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 are independent of the Office in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, 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 Office’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 Office or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Office’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 Office’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 Office’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 Office to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

Report on Compliance with Specified Authorities

Opinion

In conjunction with the audit of the financial statements, we have audited transactions of the Office of the Privacy Commissioner of Canada coming to our notice for compliance with specified authorities. The specified authorities against which compliance was audited are the Financial Administration Act and regulations, and the Privacy Act.

In our opinion, the transactions of the Office of the Privacy Commissioner of Canada that came to our notice during the audit of the financial statements have complied, in all material respects, with the specified authorities referred to above.

Responsibilities of Management for Compliance with Specified Authorities

Management is responsible for the Office of the Privacy Commissioner of Canada’s compliance with the specified authorities named above, and for such internal control as management determines is necessary to enable the Office of the Privacy Commissioner of Canada to comply with the specified authorities.

Auditor’s Responsibilities for the Audit of Compliance with Specified Authorities

Our audit responsibilities include planning and performing procedures to provide an audit opinion and reporting on whether the transactions coming to our notice during the audit of the financial statements are in compliance with the specified authorities referred to above.

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Statement of Financial Position

 

As at March 31 Statement of Financial Position (in thousands of dollars)	2023	2022
Liabilities
Accounts payable and accrued liabilities (Note 4)	1,484	1,088
Accrued employee salaries	1,470	1,413
Vacation pay and compensatory leave	1,622	1,752
Employee future benefits (Note 5)	199	503
Total liabilities	4,775	4,756
Financial assets
Due from the Consolidated Revenue Fund (Note 2c)	2,830	2,445
Accounts receivable and advances (Note 6)	175	215
Total financial assets	3,005	2,660
Net debt	1,770	2,096
Non-financial assets
Prepaid expenses	264	393
Tangible capital assets (Note 7)	1,518	1,427
Total non-financial assets	1,782	1,820
Net financial position	12	(276)
Contractual obligations (Note 8)
The accompanying notes form an integral part of these financial statements.

Approved by:

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Statement of Operations and Net Financial Position

For the year ended March 31 (in thousands of dollars)	2023 Planned results (Note 2a)	2023	2022
Expenses
Protection of Privacy Rights	23,865	25,264	25,628
Internal Services	9,278	9,615	8,977
Total expenses	33,143	34,879	34,605
Revenues
Internal Support Services	200	209	180
Total revenues	200	209	180
Net cost of operations before government funding and transfers	32,943	34,670	34,425
Government funding and transfers
Net cash provided by Government	29,172	30,300	30,869
Change in due from Consolidated Revenue Fund	49	385	(357)
Transfer of account receivables from (to) other government departments	–	(4)	28
Services provided without charge by other government departments (Note 9)	3,927	4,277	4,145
Total government funding and transfers	33,148	34,958	34,685
Net cost of operations after government funding and transfers	(205)	(288)	(260)
Net financial position – Beginning of year	(944)	(276)	(536)
Net financial position – End of year	(739)	12	(276)
Segmented information (Note 10)
The accompanying notes form an integral part of these financial statements.

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Statement of Change in Net Debt

For the year ended March 31 (in thousands of dollars)	2023 Planned results (Note 2a)	2023	2022
Net cost of operations after government funding and transfers	(205)	(288)	(260)
Change due to tangible capital assets
Acquisition of tangible capital assets (Note 7)	434	560	324
Amortization of tangible capital assets (Note 7)	(519)	(469)	(444)
Total change due to tangible capital assets	(85)	91	(120)
(Decrease) Increase in prepaid expenses	-	(129)	220
Net decrease in net debt	(290)	(326)	(160)
Net debt – Beginning of year	2,338	2,096	2,256
Net debt – End of year	2,048	1,770	2,096
The accompanying notes form an integral part of these financial statements.

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Statement of Cash Flows

For the year ended March 31 (in thousands of dollars)	2023	2022
Operating activities
Net cost of operations before government funding and transfers	34,670	34,425
Non-cash items:
Amortization of tangible capital assets	(469)	(444)
Services provided without charge by other government departments (Note 9)	(4,277)	(4,145)
Variations in Statement of Financial Position:
Decrease in accounts receivable and advances	(40)	(76)
(Decrease) increase in prepaid expenses	(129)	220
Decrease in liabilities	237	650
Transfer of account receivable between government departments	4	(28)
Cash used in operating activities	29,996	30,602
Capital investing activities
Acquisitions and improvements to tangible capital assets (Note 7)	304	267
Cash used in capital investing activities	304	267
Net cash provided by Government of Canada	30,300	30,869
The accompanying notes form an integral part of these financial statements.

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Notes to the Financial Statements

For the year ended March 31

1. Authority and objectives

The Office of the Privacy Commissioner of Canada (the Office), was created under the Privacy Act, which came into force on July 1, 1983. The Privacy Commissioner is an independent officer of Parliament appointed by the Governor-in-Council following approval of his nomination by resolution of the Senate and the House of Commons. The Office is listed under Schedule I.1 of the Financial Administration Act and is funded through annual appropriations. The Commissioner is accountable for, and reports directly to Parliament on the results achieved.

The Office of the Privacy Commissioner Core Responsibilities are:

Protection of Privacy Rights: Ensure the protection of privacy rights of Canadians; enforce privacy obligations by federal government institutions and private-sector organizations; provide advice to Parliament on potential privacy implications of proposed legislation and government programs; promote awareness and understanding of rights and obligations under federal privacy legislation.

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

The objectives of the Office of the Privacy Commissioner of Canada are:

• investigating complaints, conducting audits and pursuing court action under the Privacy Act and Personal Information Protection and Electronic Documents Act;
• publicly reporting on the personal information-handling practices of public and private sector organizations;
• supporting, undertaking and publishing research into privacy issues; and
• promoting public awareness and understanding of privacy issues, including appearing before Parliament on proposed legislation and studies on issues affecting the privacy rights of Canadians.

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2. Summary of significant accounting policies

These financial statements have been prepared using the Government’s accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

(a) Parliamentary authorities

The Office is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Office do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Net Financial Position are the amounts reported in the future-oriented Statement of Operations included in the 2022-2023 Departmental Plan. Planned results amounts in the "Government funding and transfers section" of the Statement of Operations and Net Financial Position and in the Statement of Change in Net Debt were prepared for internal management purposes and have not been previously published.

Liquidity risk is the risk that the Office will encounter difficulty in meeting its obligations associated with financial liabilities. The Office’s objective for managing liquidity risk is to manage operations and cash expenditures within the appropriation authorized by Parliament or allotment limits approved by the Treasury Board.

Each year, the Office presents information on planned expenditures to Parliament through the tabling of Estimates publications. These estimates result in the introduction of supply bills (which, once passed into legislation, become appropriation acts) in accordance with the reporting cycle for government expenditures. The Office exercises expenditure initiation processes such that unencumbered balances of budget allotments and appropriations are monitored and reported on a regular basis to help ensure sufficient authority remains for the entire period and appropriations are not exceeded.

Consistent with Section 32 of the Financial Administration Act, the Office’s policy to manage liquidity risk is that no contract or other arrangement providing for a payment shall be entered into with respect to any program for which there is an appropriation by Parliament or an item included in estimates then before the House of Commons to which the payment will be charged unless there is a sufficient unencumbered balance available out of the appropriation or item to discharge any debt that, under the contract or other arrangement, will be incurred during the fiscal year in which the contract or other arrangement is entered into.

The Office’s risk exposure and its objectives, policies and processes to manage and measure this risk did not change significantly from the prior year.

(b) Net cash provided by Government

The Office operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Office is deposited to the CRF and all cash disbursements made by the Office are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.

(c) Amounts Due from or to the Consolidated Revenue Fund (CRF)

Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Office is entitled to draw from the CRF without further authorities to discharge its liabilities.

(d) Revenues

Revenues from Internal Support Services for Information Technology Services are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.

(e) Expenses

Expenses are recorded on the accrual basis:

• Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. In situations where payments do not form part of an existing program, transfer payments are recorded as expenses when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to transfer payment expense and as a receivable.
• Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
• Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, payroll services and audit services are recorded as operating expenses at their carrying amount.

(f) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada. The Office’s contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. The Office’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 employees. Employees were given the opportunity to be paid the full or partial value of the benefits obtained to date or to recover the full or remaining value of the benefits at the time of departure of the public service. The remaining obligation for employees who did not withdraw benefits is estimated based on their respective terms of employment.

(g) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Office is not exposed to significant credit risk. The Office provides services to other government departments and agencies and to external parties in the normal course of business. Accounts receivable are due on demand. The majority of accounts receivable are due from other government of Canada departments and agencies where there is minimal potential risk of loss. The maximum exposure the Office has to credit risk equal to the carrying value of its accounts receivables.

(h) Tangible capital assets

All tangible capital assets and leasehold improvements are recorded at their acquisition cost. The Office does not capitalize intangible assets.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization period
Machinery and equipment	3 years
Informatics hardware	3 to 5 years
Computer software	3 years
Other equipment	10 years
Motor vehicles	5 years
Leasehold improvements	Lesser of useful life of the improvement or term of the lease

(i) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are the liability for employee future benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

(j) Related party transactions

Related party transactions, other than inter-entity transactions, are recorded at the exchange amount. Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the estimated cost.
2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

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3. Parliamentary authorities

The Office receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the Office has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year authorities used

(in thousands of dollars)	2023	2022
Net cost of operations before government funding and transfers	34,670	34,425
Adjustments for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(4,277)	(4,145)
Amortization of tangible capital assets	(469)	(444)
Adjustment of previous year’s accrued liabilities	6	4
Decrease in vacation pay and compensatory leave	130	160
Decrease in employee future benefits	304	42
Other	13	154
Subtotal	(4,293)	(4,229)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition and improvements to tangible capital assets	560	324
(Decrease) Increase in prepaid expenses	(129)	220
Salary overpayments	15	5
Subtotal	446	549
Current year authorities used	30,823	30,745

(b) Authorities provided and used

 

(in thousands of dollars)	2023	2022
Authorities provided:
Vote 5 – Program expenditures	28,472	28,361
Statutory amounts	3,279	3,163
Total authorities	31,751	31,524
Less:
Lapsed: Program expenditures	(928)	(779)
Current year authorities used	30,823	30,745

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4. Accounts payable and accrued liabilities

The following table presents details of the Office’s accounts payable and accrued liabilities:

(in thousands of dollars)	2023	2022
Accounts payable – Other government departments and agencies	171	111
Accounts payables – External parties	771	450
Accrued liabilities – External parties	542	527
Accounts payable and accrued liabilities	1,484	1,088
Accounts payable and accrued liabilities are measured at cost, the majority of which are due within six months of year-end.

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5. Employee future benefits

(a) Pension benefits

The Office’s employees participate in the Public Service Pension plan (the “Plan”), a contributory defined benefit plan established through legislation and sponsored by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 % per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

Both the employees and the Office contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 relates to existing plan members as of December 31, 2012 and Group 2 relates to members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

The 2022-2023 expense amounts to $2,141,915 ($2,131,976 in 2021-2022). For Group 1 members, the expense represents approximately 1.02 times (1.01 times in 2021-2022) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2021-2022) the employee contributions.

(b) Severance benefits

The Office provides severance benefits to its employees based on eligibility, years of service and salary at termination of employment.

As part of collective agreement negotiations with certain employee groups, and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or 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 benefit obligation.

These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

(in thousands of dollars)	2023	2022
Accrued benefit obligation – Beginning of year	503	545
Expense for the year	(63)	32
Benefits paid during the year	(241)	(74)
Accrued benefit obligation, end of year	199	503

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6. Accounts receivable and advances

The following table presents details of the Office’s accounts receivable and advances:

(in thousands of dollars)	2023	2022
Receivables – Other government departments and agencies	122	135
Receivables – External parties	50	77
Employee advances	3	3
Accounts receivable and advances	175	215

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7. Tangible capital assets

Cost (in thousands of dollars)	Opening Balance	Acquisitions	Disposals and adjustments	Closing Balance
Machinery and equipment	236	-	124	360
Informatics hardware	1,697	560	473	2,730
Computer software	356	-	-	356
Other equipment	322	-	-	322
Leasehold improvements	3,414	-	-	3,414
Total	6,025	560	597	7,182

Accumulated Amortization (in thousands of dollars)	Opening Balance	Amortization	Disposals and adjustments	Closing Balance
Machinery and equipment	233	2	107	342
Informatics hardware	1,569	104	490	2,163
Computer software	345	7	-	352
Other equipment	253	18	-	271
Leasehold improvements	2,198	338	-	2,536
Total	4,598	469	597	5,664

Net book value (in thousands of dollars)	Opening Balance	Closing Balance
Machinery and equipment	3	18
Informatics hardware	128	567
Computer software	11	4
Other equipment	69	51
Leasehold improvements	1,216	878
Total	1,427	1,518

The Acquisition of tangible capital assets presented in the statement of cash flow include an amount of $76,765 in relation to the acquisition of tangible capital assets, as the amount relates to capital investing activities in 2021-22 that were paid in 2022-23 and excludes an amount of $333,310 as the amount relates to capital investing activities in 2022-23 that remain to be paid as at March 31, 2023.

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8. Contractual Obligations

The nature of the Office’s activities can result in some large multi-year contracts and obligations whereby the Office will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)	2024	2025	2026	2027	2028 and thereafter
Total contractual obligations	232	232	232	-	-

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9. Related party transactions

The Office is related as a result of common ownership to all government departments, agencies, and Crown corporations. The Office enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the Office received common services which were obtained without charge from other government departments as disclosed below.

a) Common services provided without charge by other government departments

During the year, the Office received services without charge from certain common service organizations, related to accommodation, the employer’s contribution to the health and dental insurance plans and audit services. These services provided without charge have been recorded in the Office’s Statement of Operations and Net Financial Position as follows:

(in thousands of dollars)	2023	2022
Accommodation	2,157	2,002
Employer’s contribution to the health and dental insurance plans	1,966	2,018
Audit services	154	125
Total	4,277	4,145

(b) Other transactions with other government departments and agencies

(in thousands of dollars)	2023	2022
Acquisitions of tangible capital assets	-	265
Expenses	825	755
Revenues	209	180

Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a). During the year, the Office provided internal services to another government department, related to the provision of Information Technology services, which generated a revenue of $209,037 in 2022-2023 ($179,733 in 2021-2022).

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10. Segmented Information

Presentation by segment is based on the Office’s departmental results framework. Refer to Note 1 for further details of the Office’s core responsibility. Internal Services, to facilitate payment process, will incur expenses for the organization as whole for corporate services provided to the organization as well as amortization expense. These expenses are allocated at the end of the year in order to better represent segmented expenditures. The methodology used to prorate the allocation is based on the number of full time equivalent per program. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in Note 2. The following table presents the expenses incurred and the revenues generated for the main programs, by major objects of expenses and type of revenues. The segment results for the period are as follows:

(in thousands of dollars)	Protection of Privacy Rights	Internal Services	2023	2022
Operating expenses
Salaries and employee benefits	19,751	7,524	27,275	27,069
Professional and special services	1,660	932	2,592	2,954
Accommodation	1,538	619	2,157	2,002
Amortization of tangible capital assets	355	114	469	444
Transportation and communications	369	84	453	186
Rentals	546	184	730	540
Information	371	20	391	423
Equipment	60	23	83	356
Utilities, materials and supplies	25	9	34	13
Repairs and maintenance	41	106	147	109
Other	53	-	53	19
Total operating expenses	24,769	9,615	34,384	34,115
Transfer PaymentsNote 1	495	-	495	490
Revenues
Internal Support Services	-	209	209	180
Total revenues	-	209	209	180
Net cost of operations before government funding and transfers	25,264	9,406	34,670	34,425