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Royal Canadian Mounted Police

Financial statements (unaudited) of RCMP for the year ended March 31, 2024

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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, 2024, and all information contained in these statements rests with the management of the Royal Canadian Mounted Police (RCMP). These financial statements have been prepared by management using the Government of Canada’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 RCMP’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the RCMP’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 RCMP 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, 2024 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the RCMP’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the RCMP’s operations, and by the Departmental 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 financial statements of the RCMP have not been audited.

Mike Duheme
Commissioner

Samantha Hazen, CPA, CA
Chief Financial Officer

Ottawa, Canada
September 3, 2024

Statement of financial position (unaudited)

Table 1: Statement of financial position (unaudited) as at March 31, 2024 (in thousands of dollars)
2024 2023
Liabilities
Accounts payable and accrued liabilities (Note 4) 750,972 678,933
Vacation pay and compensatory leave 334,645 324,943
RCMP Pension accounts (Note 5) 39,846 41,815
Environmental liabilities and asset retirement obligations (Note 6) 44,876 24,880
Deferred revenue (Note 8) 86,818 88,000
Lease obligation for tangible capital assets (Note 9) 9,531 10,189
Employee future benefits (Note 10c) 165,979 166,450
Other liabilities (Note 11) 10,600 11,488
Total gross liabilities 1,443,267 1,346,698
Liabilities held on behalf of Government
Deferred revenue (Note 8) (5,798) (9,010)
Total liabilities held on behalf of Government (5,798) (9,010)
Total net liabilities 1,437,469 1,337,688
Financial assets
Due from Consolidated Revenue Fund 560,467 483,538
Accounts receivable and advances (Note 12) 1,282,722 1,427,477
Total gross financial assets 1,843,189 1,911,015
Financial assets held on behalf of Government
Accounts receivable and advances (Note 12) (547,952) (744,132)
Total financial assets held on behalf of Government (547,952) (744,132)
Total net financial assets 1,295,237 1,166,883
Departmental net debt 142,232 170,805
Non-financial assets
Prepaid expenses 14,925 6,516
Inventory (Note 14) 67,784 69,364
Tangible capital assets (Note 15) 2,227,608 2,074,818
Total non-financial assets 2,310,317 2,150,698
Departmental net financial position 2,168,085 1,979,893

Contractual obligations and contractual rights (Note 16)

Contingent liabilities (Note 17)

The accompanying notes form an integral part of these financial statements.

Mike Duheme
Commissioner

Samantha Hazen, CPA, CA
Chief Financial Officer

Ottawa, Canada
September 3, 2024

Statement of operations and departmental net financial position (unaudited)

Table 2: Statement of operations and departmental net financial position (unaudited) for the year ended March 31, 2024 (in thousands of dollars)
2024 planned results 2024 actual 2023 actual
Expenses
Contract and Indigenous Policing 4,050,890 4,711,599 5,153,547
Federal Policing 1,124,490 1,216,952 1,410,330
Specialized Policing Services 674,687 814,276 679,137
Internal Services 702,316 894,623 848,345
Expenses incurred on behalf of Government 217 (4,749) (6,118)
Total expenses 6,552,600 7,632,701 8,085,241
Revenues
Policing services 2,871,771 3,143,249 2,841,723
Firearms licence fees 37,798 38,159 32,817
Other revenues 37,281 68,603 63,103
Revenues earned on behalf of Government (939,917) (1,036,368) (912,466)
Total revenues 2,006,933 2,213,643 2,025,177
Net cost of operations before government funding and transfers 4,545,667 5,419,058 6,060,064
Government funding and transfers
Net cash provided by Government of Canada 5,049,199 5,855,347
Change in due from Consolidated Revenue Fund 76,929 (140,047)
Services provided without charge by other government departments (Note 18) 481,122 437,457
Net (results) cost of operations after government funding and transfers (188,192) (92,693)
Departmental net financial position - beginning of year 1,979,893 1,887,200
Departmental net financial position - end of year 2,168,085 1,979,893

Segmented information (Note 19)

The accompanying notes form an integral part of these financial statements.

Statement of change in departmental net debt (unaudited)

Table 3: Statement of change in departmental net debt (unaudited) for the year ended March 31, 2024 (in thousands of dollars)
2024 actual 2023 actual
Net (results) cost of operations after government funding and transfers (188,192) (92,693)
Change due to tangible capital assets
Acquisition of tangible capital assets 326,739 287,797
Amortization of tangible capital assets (188,344) (172,316)
Proceeds from disposal of tangible capital assets (2,743) (3,212)
Net (loss) gain on disposal of tangible capital assets (3,149) (2,741)
Adjustments of tangible capital assets 20,287 (198)
Total change due to tangible capital assets 152,790 109,330
Change due to prepaid expenses 8,409 6,286
Change due to inventory (1,580) (8,185)
(Decrease) increase in departmental net debt (28,573) 14,738
Departmental net debt - beginning of year 170,805 156,067
Departmental net debt - end of year 142,232 170,805

The accompanying notes form an integral part of these financial statements.

Statement of cash flows (unaudited)

Table 4: Statement of cash flows (unaudited) for the year ended March 31, 2024 (in thousands of dollars)
2024 2023
Operating activities
Net cost of operations before government funding and transfers 5,419,058 6,060,064
Non-cash items:
Amortization of tangible capital assets (188,344) (172,316)
Net (loss) gain on disposal of tangible capital assets (3,149) (2,741)
Adjustments of tangible capital assets 20,287 (198)
Services provided without charge by other government departments (481,122) (437,457)
Other 51 -
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances 51,425 5,235
Increase (decrease) in prepaid expenses 8,409 6,286
(Decrease) increase in inventory (1,580) (8,185)
(Increase) decrease in accounts payable and accrued liabilities (72,039) 12,825
(Increase) decrease in vacation pay and compensatory leave (9,702) 24,056
Decrease (increase) in RCMP Pension accounts 1,969 115,264
(Increase) decrease in environmental liabilities and asset retirement obligations (19,996) 3,365
(Increase) decrease in deferred revenue (2,030) (9,341)
(Increase) decrease in employee future benefits 471 (27,123)
Decrease (increase) in other liabilities 888 405
Cash used in operating activities 4,724,596 5,570,139
Capital investing activities
Acquisition of tangible capital assets (excluding assets under capital lease) 326,555 287,797
Proceeds from disposal of tangible capital assets (2,743) (3,212)
Cash used in capital investing activities 323,812 284,585
Financing activities
Lease payments for tangible capital assets 791 623
Cash used in financing activities 791 623
Net cash provided by Government of Canada 5,049,199 5,855,347

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 objectives

The Royal Canadian Mounted Police (RCMP) is Canada’s national police force and an agency of the Public Safety and Emergency Preparedness portfolio.

The RCMP's mandate, as outlined in section 18 of the Royal Canadian Mounted Police Act, is multi-faceted. It includes: preventing and investigating crime; maintaining peace and order; enforcing laws; contributing to national security; ensuring the safety of state officials, visiting dignitaries and foreign missions; and providing vital operational support services to other police and law enforcement agencies within Canada and abroad. The core business of the RCMP is currently organized into the following four core responsibilities:

Contract and Indigenous Policing

Under the Police Service Agreements, the RCMP provides policing services to the provinces (except Ontario and Quebec) and territories, as well as municipalities and Indigenous communities including through the First Nations and Inuit Policing Program. These services include the general administration of justice, consisting of the preservation of the peace, prevention of crime, and fulfilment of all duties as outlined under the laws of Canada or the laws of respective provinces and territories.

Federal Policing

Federal Policing addresses the most serious and complex criminal threats to the safety and security of Canadians and Canadian interests, including democratic institutions, economic integrity, and physical and cyber infrastructure. Through Federal Policing, the RCMP prevents, detects, and investigates national security, cyber-crime, and transnational and serious organized crime, including financial crime. In addition, it enforces federal statutes, conducts international policing activities, and upholds Canada's border integrity and the security of significant government-led events, designated officials and dignitaries.

Specialized Policing Services

Externally, the RCMP provides specialized and technical services to all Canadian law enforcement agencies, which include advanced training for law enforcement; national criminal data repositories; firearms regulation and licensing; and investigative tools and services, including forensics, identification, firearms and child exploitation. Internally, a diverse range of technical services are also provided to advance RCMP operations and investigations, such as the collection of digital evidence and cybercrime intelligence, the delivery of policing information technology tools, and the implementation of departmental and personnel security standards.

Internal Services

Internal services are the services that are provided within a department so that it can meet its corporate obligations and deliver its programs. There are 10 categories of internal services:

  • management and oversight services
  • communications services
  • legal services
  • human resources management services
  • financial management services
  • information management services
  • information technology services
  • real property management services
  • materiel management services
  • acquisition management services

2. Summary of significant accounting policies

These financial statements are prepared using the RCMP’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 RCMP is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the RCMP does 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 Departmental 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 Departmental Net Financial Position are the amounts reported in the Future Oriented Statement of Operations included in the 2023-2024 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2023-2024 Departmental Plan.

b. Net cash provided by Government

The RCMP operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the RCMP is deposited to the CRF, and all cash disbursements made by the RCMP 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

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 RCMP is entitled to draw from the CRF without further authorities to discharge its liabilities.

d. Revenues and deferred revenues

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, and non-exchange transactions where no performance obligations exist to provide a good or service. These transactions can be recurring or non-recurring in nature. Recurring transactions are the result of ongoing, routine activities that form part of the normal course of operations and can be reasonably expected to occur again in future years.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned. Other revenues are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the RCMP’s liabilities. While the Commissioner is expected to maintain accounting control, he has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity’s gross revenues. Revenues earned on behalf of Government consist of the sale of services and gains on the sale of assets. These are recognized when earned.

e. Expenses

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

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, legal services and workers’ compensation are recorded as operating expenses at their carrying value.

f. Employee future benefits

i. Pension benefits for Public Service employees

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

ii. Pension benefits for RCMP members

Members of the RCMP participate in a defined benefit pension plan (the “RCMP Plan”) under the Royal Canadian Mounted Police Superannuation Act, which is sponsored by the Government of Canada. The Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs is the Minister responsible for the Act. The RCMP is responsible for the management of the RCMP Plan, while Public Services and Procurement Canada (PSPC) provides the day-to-day administration of the RCMP Plan. The Office of the Chief Actuary makes periodic actuarial valuations of the RCMP Plan. The RCMP Pension Accounts are the responsibility of the Government and are presented in the Consolidated Financial Statements of the Government of Canada. The RCMP’s annual contributions toward the cost of current and prior service are charged to salaries and employee benefits expense in the year incurred. In addition to its regular contributions, current legislation also requires the RCMP to make contributions for actuarial deficiencies in the RCMP Plan. These contributions are expensed in the year they are credited to the RCMP Plan. This accounting treatment corresponds to the funding provided to departments through Parliamentary authorities.

iii. Severance benefits

The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining 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 as a whole.

g. Financial instruments

A contract establishing a financial instrument creates, at its inception, rights, and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. The RCMP recognizes a financial instrument when it becomes a party to a financial instrument contract.

Financial instruments consist of accounts receivable and accounts payable and accrued liabilities.

All financial assets and liabilities are recorded at cost or amortized cost. Any associated transaction costs are added to the carrying value upon initial recognition. For financial instruments measured at amortized cost, the effective interest method is used to determine interest revenue or expense.

See Note 13 Risk Management for risks related to the RCMP’s financial instruments.

Accounts receivable are initially recorded at cost. When necessary, an allowance for valuation is recorded to reduce the carrying value of accounts to amounts that approximate their net recoverable value.

h. Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 15. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collections and Crown land to which no acquisition cost is attributable or intangible assets.

Inventories are valued at cost and are comprised of uniforms and personal equipment, firearms and ammunition, spare parts and supplies held for future program delivery and are not primarily intended for resale. Inventories that no longer have service potential are valued at the lower of cost or net realizable value.

i. Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in Note 17.

j. Contingent assets

Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in Note 17.

k. Environmental liabilities and asset retirement obligations

An environmental liability for the remediation of contaminated sites is recognized when all of the following criteria are satisfied: an environmental standard exists, contamination exceeds the environmental standard, the RCMP is directly responsible or accepts responsibility, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The liability reflects the RCMP’s best estimate of the amount required to remediate the sites to the current minimum standard for its use prior to contamination.

An asset retirement obligation is recognized when all of the following criteria are satisfied: there is a legal obligation to incur retirement costs in relation to a tangible capital asset, the past event or transaction giving rise to the retirement liability has occurred, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The costs to retire an asset are normally capitalized and amortized over the asset’s estimated remaining useful life. An asset retirement obligation may arise in connection with a tangible capital asset that is not recognized or no longer in productive use. In this case, the asset retirement cost would be expensed. The measurement of the liability is the government’s best estimate of the amount required to retire a tangible capital asset.

When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable and are expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the Government’s cost of borrowing, associated with the estimated number of years to complete remediation.

The recorded liabilities are adjusted each year, for present value adjustments, inflation, new obligations, changes in management estimates and actual costs incurred.

If the likelihood of the RCMP’s responsibility is not determinable, a contingent liability is disclosed in Note 17.

l. Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes as at March 31, 2024. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the RCMP's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, environmental liabilities and asset retirement obligations, the liability for employee future benefits, allowance for vacation pay and compensatory leave, deferred revenue for Contract Policing arrangements on tangible capital assets, accrued salaries and wages at year-end, accrued revenues for Contract Policing 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.

m. 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 exchange amount.
  2. Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

The RCMP receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental 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 RCMP 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

Table 5: Reconciliation of net cost of operations to current year authorities used (in thousands of dollars)
2024 2023
Net cost of operations before government funding and transfers 5,419,058 6,060,064
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (188,344) (172,316)
Net (loss) gain on disposal and write-off of tangible capital assets and asset retirement obligations (2,478) (2,499)
Services provided without charge by other government departments (481,122) (437,457)
(Increase) decrease in vacation pay and compensatory leave (9,702) 24,056
Decrease (increase) in employee future benefits 471 (27,123)
(Increase) decrease in accrued liabilities (7,477) 4,465
(Increase) decrease in environmental liabilities (327) 3,537
Bad debt expense (22,197) (6,639)
Refund of prior years' expenditures 18,512 64,666
Refund of program expenditures 157 2,172
Uncollected respendable revenue 77,356 5,666
Post-capitalization of capital assets 1,751 63
Other (319) (455)
Total items affecting net cost of operations but not affecting authorities (613,719) (541,864)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets (excluding assets under capital lease) 326,555 287,797
Lease payments for tangible capital assets 791 623
Salary overpayments 3,620 2,679
Increase (decrease) in prepaid expenses 8,409 6,286
(Decrease) increase in inventory (1,580) (8,185)
Advances to employees 19 (2)
Other 146 41
Total items not affecting net cost of operations but affecting authorities 337,960 289,239
Current year authorities used 5,143,299 5,807,439

b. Authorities provided and used

Table 6: Authorities provided and used (in thousands of dollars)
2024 2023
Authorities provided:
Vote 1 - Operating Expenditures 3,685,544 3,441,885
Vote 5 - Capital Expenditures 452,649 384,492
Vote 10 - Grants and Contributions 760,970 668,925
Statutory Amounts 575,231 1,725,238
Total Authorities provided 5,474,394 6,220,540
Less:
Authorities available for future years (754) (396)
Lapsed: Operating (150,076) (174,759)
Lapsed: Capital (125,551) (96,256)
Lapsed: Grants and Contributions (54,714) (141,690)
Current year authorities used 5,143,299 5,807,439

4. Accounts payable and accrued liabilities

The following table presents details of the RCMP's accounts payable and accrued liabilities:

Table 7: Accounts payable and accrued liabilities (in thousands of dollars)
2024 2023
Accounts payable - Other government departments and agencies 107,186 80,143
Accounts payable - External parties 284,581 242,168
Total accounts payable 391,767 322,311
Accrued liabilities 359,205 356,622
Total accounts payable and accrued liabilities 750,972 678,933

5. RCMP Pension accounts

The RCMP maintains accounts to record the transactions pertaining to the Royal Canadian Mounted Police Pension Plan (the “RCMP Plan”), which comprises the RCMP Superannuation Account, the RCMP Pension Fund Account and the Retirement Compensation Arrangement Account. Details of the RCMP Plan can be found in the RCMP Pension Plan Annual Report and in the Public Accounts of Canada.

a. RCMP Superannuation Account

Until April 1, 2000, separate market-invested funds were not set aside to provide for payment of pension benefits. Instead, transactions relating to this plan were recorded in a RCMP Superannuation Account created by legislation in the Accounts of the Government of Canada.

The RCMP Superannuation Account is established in the Accounts of Canada pursuant to the RCMP Superannuation Account. The RCMP Superannuation Account requires that the RCMP Superannuation Account record transactions such as contributions, benefits paid and transfers that pertain to pre-April 1, 2000 service, and that the RCMP Superannuation Account be credited with interest. The Royal Canadian Mounted Police Superannuation Regulations require that the interest be credited quarterly at rates calculated as though the amounts recorded in the RCMP Superannuation Account were invested quarterly in a notional portfolio of Government of Canada 20-year bonds held to maturity.

The balances and transactions in the RCMP Superannuation Account are not included in the RCMP’s Statement of Financial Position as they are the responsibility of the Government of Canada and are presented in the Consolidated Financial Statements of the Government of Canada. They are presented here for information only.

Table 8: RCMP Superannuation account (in thousands of dollars)
2024 2023
RCMP Superannuation Account
Opening balance 13,920,882 13,051,955
Funds received and other credits 420,374 1,625,042
Payments and other charges (789,248) (756,115)
Closing balance of the RCMP Superannuation Account 13,552,008 13,920,882

b. RCMP Pension Fund account

Pursuant to the Royal Canadian Mounted Police Superannuation Act as amended by the Public Sector Pension Investment Board Act, transactions relating to service subsequent to March 31, 2000, are recorded in the RCMP Pension Fund, where the excess of contributions over benefits and administration costs is invested in capital markets by the Public Sector Pension Investment Board. Public Sector Pension Investment Board is a separate Crown Corporation that commenced operations on April 1, 2000. The statutory objectives of Public Sector Pension Investment Board are to manage the funds transferred to it in the best interests of the contributors and beneficiaries and to maximize investment returns without undue risk of loss having regard to the funding requirements of the RCMP Pension Fund.

The net amount of contributions less benefits and other payments is regularly transferred to Public Sector Pension Investment Board for investment in capital markets. As at March 31, 2024, the balance in the RCMP Pension Fund Account represents amounts to net contributions in transit awaiting imminent transfer to Public Sector Pension Investment Board.

c. Retirement Compensation Arrangement Account

The Retirement Compensation Arrangement (RCA) account records transactions for pension benefits that are provided in excess of those permitted under the Income Tax Act. The RCA is registered with Canada Revenue Agency (CRA) and a transfer is made annually between the RCA Account and the CRA to either remit a 50% refundable tax in respect of the net contributions and interest credits or to be credited a reimbursement based on the net benefit payments. As at March 31, 2024 the total refundable tax transferred amounts to $36.4 million ($36.5 million in 2023).

The following table provides details of the RCMP Plan accounts:

Table 9: RCMP Pension Fund Account and Retirement Compensation Arrangement Account (in thousands of dollars)
2024 2023
RCMP Pension Fund Account
Opening balance 5,483 121,718
Funds received and other credits 613,801 606,742
Payments and other charges (436,448) (426,078)
Transfer to the Public Sector Pension Investment Board (179,082) (296,899)
Closing balance 3,754 5,483
Retirement Compensation Arrangement Account
Opening balance 36,332 35,361
Funds received and other credits 1,946 3,991
Payments and other charges (2,186) (3,020)
Closing balance 36,092 36,332
Total closing balance of the RCMP Pension Fund Account and the RCA Account 39,846 41,815

6. Environmental liabilities and asset retirement obligations

Table 10: Environmental liabilities and asset retirement obligations (in thousands of dollars)
2024 2023
Remediation liability for contaminated sites 6,273 5,946
Asset retirement obligations 38,603 18,934
Total environmental liabilities and asset retirement obligations 44,876 24,880

a. Remediation of contaminated sites

The Government’s “Federal Approach to Contaminated Sites” sets out a framework for the management of contaminated sites using a risk-based approach. Under this approach the Government has inventoried the contaminated sites identified on federal lands, allowing them to be classified, managed and recorded in a consistent manner. This systematic approach aids in identification of the high-risk sites in order to allocate limited resources to those sites which pose the highest risk to human health and the environment.

The RCMP has identified approximately 127 sites (136 sites in 2023) where contamination may exist and assessment, remediation and monitoring may be required. Of these, the RCMP has identified 10 sites (9 sites in 2023) where action is required and for which a gross liability of $3.0 million ($3.0 million in 2023) has been recorded. This liability estimate has been determined based on site assessments performed by environmental experts.

In addition, a statistical model based upon a projection of the number of sites that will proceed to remediation and upon which current and historical costs are applied is used to estimate the liability for a group of unassessed sites. This group includes 104 unassessed sites (111 sites in 2023), of which 28 sites (29 sites in 2023) are projected to proceed to remediation and for which an estimated of $3.3 million ($2.9 million in 2023) has been recorded using this model.

These two estimates combined, totalling $6.3 million ($5.9 million in 2023) represents management’s best estimate of the costs required to remediate sites to the current minimum standard for its use prior to contamination, based on information available at the financial statement date.

For the remaining 13 sites (16 sites in 2023), no liability for remediation has been recognized. Some of these sites are at various stages of testing and evaluation and if remediation is required, liabilities will be reported as soon as a reasonable estimate can be determined. For other sites, the RCMP does not expect to give up any future economic benefits (there is likely no significant environmental impact or human health threats). These sites will be re-examined and a liability for remediation will be recognized if future economic benefits will be given up.

The following table presents the total estimated amounts of these liabilities by nature and source and the total undiscounted future expenditures as at March 31, 2024 and March 31, 2023. When the liability estimate is based on a future cash requirement, the amount is adjusted for inflation using a forecast consumer price index rate of 2.0% (2.0% in 2023). Inflation is included in the undiscounted amount. The Government of Canada’s cost of borrowing by reference to the actual zero-coupon yield curve for Government of Canada bonds has been used to discount the estimated future expenditures. The March 2024 rates range from 4.53% (4.50% in 2023) for 1-year term to 3.29% (3.01% in 2023) for a 30 or greater year term.

Table 11: Remediation of contaminated sites (in thousands of dollars)
Nature and source Total number of sites 2024 Number of sites with a liability 2024 Estimated liability 2024 Estimated total undiscounted liability 2024 Total number of sites 2023 Number of sites with a liability 2023 Estimated liability 2023 Estimated total undiscounted liability 2023
Fuel Related Practices table 11 note1 21 9 2,940 3,392 23 8 2,990 3,401
Engineering Assets/Air and Land Transportation table 11 note2 2 1 127 127 1 1 127 127
Office/Commercial/Industrial Operations table 11 note3 99 25 2,123 2,123 108 27 2,234 2,233
Other table 11 note4 5 3 1,083 1,084 4 2 595 596
Total 127 38 6,273 6,726 136 38 5,946 6,357
Table 11 notes
Table 11 note 1

Contamination primarily associated with fuel storage and handling. For example, accidental spills related to fuel storage tanks or former fuel handling practices, for example, petroleum hydrocarbons, polyaromatic hydrocarbons and BTEX (benzene, toluene, ethylbenzene and xylenes).

Return to table 11 note1 referrer

Table 11 note 2

Contamination associated with the operations of engineered assets such as airports, railways and roads where activities such as fuel storage/handling, waste sites, firefighting training facilities and chemical storage areas resulted in former of accidental contamination, for example, metals, petroleum hydrocarbons, polyaromatic hydrocarbons, BTEX and other organic contaminants. Sites often have multiple sources of contamination.

Return to table 11 note2 referrer

Table 11 note 3

Contamination associated with the operations of the office/commercial/industrial facilities where activities such as fuel storage/handling, waste sites and use of metal-based paint resulted in former or accidental contamination, for example, metals, petroleum hydrocarbons, polyaromatic hydrocarbons, BTEX, etc. Sites often have multiple sources of contamination.

Return to table 11 note3 referrer

Table 11 note 4

Contamination from other sources, for example, use of pesticides, herbicides, fertilizers at agricultural sites, use of PCBs, firefighting training areas, firing ranges and training facilities, etc.

Return to table 11 note4 referrer

Also during the year 35 sites (36 sites in 2023) were closed as they were either remediated or assessed to confirm that they no longer meet all the criteria required to record a liability for contaminated sites.

b. Asset retirement obligations

The RCMP has recorded asset retirement obligations for the removal of asbestos and other hazardous materials in buildings and closure and post-closure obligations associated with other works and infrastructure.

The changes in asset retirement obligations during the year are as follows:

Table 12: Changes in asset retirement obligations (in thousands of dollars)
Asbestos and other hazardous material in buildings 2024 Closure and post-closure obligations – other works and infrastructure 2024 Total 2024 Total 2023
Opening balance 13,146 5,788 18,934 18,762
Liabilities incurred 1,512 - 1,512 -
Liabilities settled (226) - (226) (283)
Revisions in estimates 18,532 (716) 17,816 -
Accretion expense table 12 note1 404 163 567 455
Closing balance 33,368 5,235 38,603 18,934
Table 12 notes
Table 12 note 1

Accretion expense is the increase in the carrying amount of an asset retirement obligation due to the passage of time.

Return to table 12 note1 referrer

The undiscounted future expenditures, adjusted for inflation, for the planned projects comprising the liability are $70.4 million ($29.4 million as at March 31, 2023).

Key assumptions used in determining the provision are as follow:

Table 13: Key assumption used for asset retirement obligations
2024 2023
Discount rate 3.30% to 3.50% 2.37% to 2.50%
Discount period 4 to 29 years 5 to 25 years
Long-term rate of inflation 2.00% 2.00%

The RCMP’s ongoing efforts to assess contaminated sites and asset retirement obligations may result in additional environmental liabilities and asset retirement obligations.

7. Revenues

The RCMP has the following major types of revenues: Policing services, firearms license fees, other revenues, and revenues earned on behalf of the Government. Policing services and firearms licenses fees are recorded when performance obligations are satisfied. Other revenues include biology casework analysis, police training and other fees and charges. These are recorded in the period the event giving rise to the revenues occurred.

Table 14: Revenues (in thousands of dollars)
2024 2023
Policing services (exchange) 3,143,249 2,841,723
Firearms license fees (exchange) 38,159 32,817
Other revenues
Biology casework analysis (exchange) 18,476 17,766
Police training (exchange) 14,778 13,497
Other fees and charges (exchange and non-exchange) 35,349 31,840
Total other revenues 68,603 63,103
Revenues earned on behalf of government (exchange) (1,036,368) (912,466)
Total revenues table 14 note1 2,213,643 2,025,177
Table 14 notes
Table 14 note 1

Total non-recurring revenues of $1.1 million ($1.8 million in 2023) in relation to Other fees and charges.

Return to table 14 note 1 referrer

8. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific programs and stemming from amounts received for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed.

Deferred revenue consists of three categories: deferred revenue for contract policing arrangements on tangible capital assets, deferred revenue for donations and bequests and deferred revenue for firearms licence fees.

a. Contract policing arrangements on tangible capital assets

Deferred revenue for contract policing agreements (effective April 1, 2012 to March 31, 2032) on tangible capital assets represents the net balance of revenue received in advance of the construction, purchase and maintenance of buildings and works pursuant to the contract policing arrangements accommodations program. The revenue is recognized as costs for the construction, purchase and maintenance of buildings are incurred.

b. Donations and bequests

Deferred revenue for donations and bequests represents the balance of contributions received for various specified purposes. The revenue is recognized in the period in which the related expenses are incurred.

c. Firearms licence fees

Deferred revenue for firearms licence fees represents the firearms application fees received from clients where the application processing has not reached a sufficient stage to warrant recognizing revenue. When the application reaches a stage where the eligibility of the applicant has been assessed and the firearms licence has been issued, the fees are recognized as revenue.

The following table provides details of deferred revenue:

Table 15: Deferred revenue (in thousands of dollars)
2024 2023
Contract policing arrangements on tangible capital assets
Opening balance 78,223 68,866
Revenue received in advance of construction, purchase and maintenance of buildings and works 61,834 68,138
Revenue recognized (59,205) (58,781)
Gross closing balance 80,852 78,223
Donations and bequests
Opening balance 767 783
Contributions received - -
Revenue recognized (599) (16)
Gross closing balance 168 767
Firearms licence fees
Opening balance 9,010 6,511
Firearms application fees received 33,544 34,132
Revenue recognized (36,756) (31,633)
Gross closing balance 5,798 9,010
Total deferred revenue
Opening balance 88,000 76,160
Amounts received 95,378 102,270
Revenue recognized (96,560) (90,430)
Gross total deferred revenue closing balance 86,818 88,000
Deferred revenue held on behalf of Government (5,798) (9,010)
Net total deferred revenue closing balance 81,020 78,990

9. Lease obligation for tangible capital assets

The RCMP has entered into agreements to lease certain buildings under capital leases with a cost of $16.3 million and accumulated amortization of $9.4 million as at March 31, 2024 ($16.3 million and $8.7 million respectively as at March 31, 2023). The obligations related to the upcoming years include the following:

Table 16: Lease obligation for tangible capital assets (in thousands of dollars)
2024
2025 1,206
2026 1,206
2027 1,206
2028 1,206
2029 1,206
2030 and subsequent 6,534
Total future minimum lease payments 12,564
Less: imputed interest (5.54%) 3,033
Balance of obligations under leased tangible capital assets 9,531

10. Employee future benefits

a. Pension benefits (Public Service employees)

The RCMP’s public service employees participate in the Public Service Pension Plan (the “Plan”), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits and they are indexed to inflation.

Both the employees and the RCMP contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to the 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 2024 expense amounts to $82.4 million ($69.6 million in 2023). For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2023) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2023) the employee contributions.

The RCMP's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the Plan's sponsor.

b. Pension benefits (RCMP members)

The Government of Canada sponsors a variety of employee future benefits such as pension plans and disability benefits, which cover members of the RCMP. The RCMP is responsible for the overall management of the RCMP Plan. Under the terms of a Service Level Agreement, PSPC provides the day-to-day administration of the RCMP Plan, including determining eligibility for benefits and calculating and paying benefits.

Both the members and the RCMP contribute to the cost of the RCMP Plan. The 2024 expense amounts to $322.9 million ($326.5 million in 2023) and the actuarial adjustment amounts to nil ($1.22 billion in 2023). The $327.6 million of government contribution represents approximately 1.21 times the contributions by members (1.23 in 2023). The actuarial liability and actuarial surpluses or deficiencies are recognized in the Consolidated Financial Statements of the Government of Canada, as the RCMP Plan’s sponsor.

The actuarial liability and related disclosures for these future benefits are presented in the Consolidated Financial Statements of the Government of Canada. This differs from the accounting and disclosures of future benefits for the RCMP presented in these financial statements whereby pension expense corresponds to the RCMP’s annual contributions toward the cost of current service.

c. Severance benefits

Severance benefits provided to the RCMP’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2024, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows:

Table 17: Severance benefits (in thousands of dollars)
2024 2023
Public Service employees
Accrued benefit obligation - beginning of year 16,835 18,412
Expense for the year 1,973 (491)
Benefits paid during the year (1,164) (1,086)
Accrued benefit obligation - end of year 17,644 16,835
RCMP members
Accrued benefit obligation - beginning of year 149,615 120,915
Expense for the year 15,136 43,873
Benefits paid during the year (16,416) (15,173)
Accrued benefit obligation - end of year 148,335 149,615
Total
Accrued benefit obligation - beginning of year 166,450 139,327
Expense for the year 17,109 43,382
Benefits paid during the year (17,580) (16,259)
Accrued benefit obligation - end of year 165,979 166,450

11. Other liabilities

Benefit Trust Fund

This account was established by section 23 of the Royal Canadian Mounted Police Act, to record funds received by personnel of the RCMP, in connection with the performance of duties, over and above their pay and allowances, including forfeitures of pay. The money paid to the Benefit Trust Fund is used for the benefit of RCMP members, former members and their dependants; use of the funds is governed by the Royal Canadian Mounted Police Regulations, 2014.

RCMP (Dependants) Pension Fund

This fund, which pertains to Part IV of the Royal Canadian Mounted Police Pension Continuation Act, provides pension benefits to certain widows and other dependants of Constables of the RCMP, who purchased pension benefits between October 1, 1934 and March 1, 1949. There are no longer any active members amongst the contributors.

The following table presents details of the other liabilities:

Table 18: Other liabilities (in thousands of dollars)
2024 2023
Benefit Trust Fund
Opening balance 2,898 2,725
Funds received and other credits 265 287
Payments and other charges (143) (114)
Closing balance 3,020 2,898
RCMP (Dependants) Pension Fund
Opening balance 6,475 7,496
Funds received and other credits 184 223
Payments and other charges (1,542) (1,244)
Closing balance 5,117 6,475
Other liabilities
Opening balance 2,115 1,672
Funds received and other credits 634 485
Payments and other charges (286) (42)
Closing balance 2,463 2,115
Total other liabilities 10,600 11,488

12. Accounts receivable and advances

The following table presents details of the RCMP's accounts receivable and advances balances:

Table 19: Accounts receivable and advances (in thousands of dollars)
2024 2023
Receivables - Other government departments and agencies 26,419 42,054
Receivables - External parties 1,276,976 1,379,054
Employee advances 19,660 19,784
Subtotal 1,323,055 1,440,892
Allowance for doubtful accounts on receivables from external parties (40,333) (13,415)
Gross accounts receivable 1,282,722 1,427,477
Accounts receivable held on behalf of Government (547,952) (744,132)
Net accounts receivable 734,770 683,345

The following table provides an aging analysis of accounts receivable from external parties and the associated valuation allowances used to reflect their net recoverable value:

Table 20: Aging analysis of accounts receivable from external parties and the associated valuation allowance (in thousands of dollars)
2024 2023
Not past due 947,687 1,313,833
Number of days past due
1 to 30 4,520 14,159
31 to 60 503 303
61 to 90 304 1,436
91 to 365 280,491 23,553
Over 365 43,471 25,770
Sub-total 1,276,976 1,379,054
Less: Valuation allowance (40,333) (13,415)
Total 1,236,643 1,365,639

13. Risk Management

The RCMP has exposure to the following risks from its use of financial instruments: credit risk and liquidity risk.

a. Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss. The RCMP’s maximum exposure to credit risk at March 31, 2024 and March 31, 2023 is the carrying amount of its financial assets. The RCMP has determined that there is no significant concentration of credit risk related to accounts receivable from external parties. An analysis of the age of these financial assets and the associated valuation allowances used to reflect these accounts at their net recoverable value is disclosed in Note 12.

b. Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting its obligations associated with financial liabilities. As the funding for the RCMP’s financial liabilities is drawn from the CRF, its exposure to liquidity risk is fully mitigated.

14. Inventory

Table 21: Inventory (in thousands of dollars)
2024 2023
Uniforms and personal equipment 33,190 36,698
Firearms and ammunition 22,248 21,227
Aircraft, ship and road motor vehicle parts 7,100 6,436
Other 5,246 5,003
Total inventory 67,784 69,364

The cost of consumed inventory recognized as an expense in the Statement of Operations and Departmental Net Financial Position is $36.0 million in 2024 ($38.0 million in 2023).

15. Tangible capital assets

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

Table 22: Amortization period by asset class
Asset class Amortization period
Buildings 20 to 30 years
Works and infrastructure 20 years
Machinery and equipment 3 to 15 years
Computer hardware 4 to 7 years
Computer software 3 to 7 years
Vehicles 8 to 15 years
Leasehold improvements Lesser of the useful life of the improvement or the lease term
Assets under capital leases Over the lease term

Assets under construction are recorded in the applicable asset class in the year they are put into service and are not amortized until they are put into service.

Table 23: Cost of tangible capital assets (in thousands of dollars)
Capital asset class Opening balance Acquisitions Adjustments table 22 note1 Disposals and write‑offs Closing balance
Land 69,428 - 4,081 163 73,346
Buildings 1,574,241 - 228,008 5,741 1,796,508
Works and infrastructure 180,432 - 5,287 126 185,593
Machinery and equipment 416,584 22,408 13,288 405 451,875
Computer hardware 266,257 3,531 18,494 1,872 286,410
Computer software 578,274 193 1,314 2,343 577,438
Vehicles 870,544 116,601 16,322 34,199 969,268
Leasehold improvements 136,078 - 10,618 - 146,696
Assets under construction 615,910 183,873 (278,331) 161 521,291
Subtotal 4,707,748 326,606 19,081 45,010 5,008,425
Assets under capital leases 16,264 133 (133) - 16,264
Total 4,724,012 326,739 18,948 45,010 5,024,689
Table 23 notes
Table 23 note 1

Adjustments include assets under construction of $278.3 million that were transferred to the other categories upon completion of the assets and asset retirement obligation adjustments of $17.8 million due to changes in estimates and rate revisions.

Return to table 23 note1 referrer

Table 24: Accumulated amortization of tangible capital assets (in thousands of dollars)
Capital asset class Opening balance Amortization Adjustments table 23 note1 Disposals and write‑offs Closing balance
Land - - - - -
Buildings 926,357 45,806 189 5,027 967,325
Works and infrastructure 113,314 7,744 - 120 120,938
Machinery and equipment 298,538 19,789 277 360 318,244
Computer hardware 231,816 12,861 104 1,851 242,930
Computer software 500,136 27,296 - 2,343 525,089
Vehicles 482,032 67,311 (1,907) 29,416 518,020
Leasehold improvements 88,258 6,880 - - 95,138
Assets under construction - - - - -
Subtotal 2,640,451 187,687 (1,337) 39,117 2,787,684
Assets under capital leases 8,743 657 (3) - 9,397
Total 2,649,194 188,344 (1,340) 39,117 2,797,081
Table 24 notes
Table 24 note 1

Adjustments include assets under construction of $278.3 million that were transferred to the other categories upon completion of the assets and asset retirement obligation adjustments of $17.8 million due to changes in estimates and rate revisions.

Return to table 24 note1 referrer

Table 25: Net book value of tangible capital assets (in thousands of dollars)
Capital asset class 2024 2023
Land 73,346 69,428
Buildings 829,183 647,884
Works and infrastructure 64,655 67,118
Machinery and equipment 133,631 118,046
Computer hardware 43,480 34,441
Computer software 52,349 78,138
Vehicles 451,248 388,512
Leasehold improvements 51,558 47,820
Assets under construction 521,291 615,910
Subtotal 2,220,741 2,067,297
Assets under capital leases 6,867 7,521
Total 2,227,608 2,074,818

16. Contractual obligations and contractual rights

a. Contractual obligations

The nature of the RCMP’s activities may result in some large multi-year contracts and obligations whereby the RCMP will be obligated to make future payments in order to carry out its transfer payment programs or when services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Table 26: Contractual obligations (in thousands of dollars)
2025 2026 2027 2028 2029 2030 and subsequent Total
Acquisition of capital assets 193,117 32,168 5,487 120 - - 230,892
Acquisition of other goods and services 50,951 47,001 13,017 13,046 10,085 16,867 150,967
Operating leases 32,069 32,069 32,069 32,069 32,069 96,208 256,553
Total 276,137 111,238 50,573 45,235 42,154 113,075 638,412

b. Contractual rights

The activities of the RCMP sometimes involve the negotiation of contracts or agreements with outside parties that result in the RCMP having rights to both assets and revenues in the future. They principally involve sales of goods and services. Major contractual rights that will generate revenues in future years and that can be reasonably estimated are summarized as follows:

Table 27: Contractual rights (in thousands of dollars)
2025 2026 2027 2028 2029 2030 and subsequent Total
Sales of goods and services 3,358,379 3,476,245 3,629,236 3,746,772 3,909,288 12,622,936 30,742,856
Total 3,358,379 3,476,245 3,629,236 3,746,772 3,909,288 12,622,936 30,742,856

17. Contingent liabilities

Contingent liabilities arise in the normal course of operations and their ultimate disposition is unknown. They are grouped into three categories as follows:

a. Environmental liabilities

The RCMP has disclosed a contingent liability in the amount of $0.8 million for two sites ($0.8 million in 2023 for two sites) where the RCMP has determined that it is not directly responsible, nor does it accept responsibility; however, there is uncertainty as to whether the RCMP may be held responsible at some point in the future.

b. Claims and litigation

Claims have been made against the RCMP 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. The RCMP has recorded an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. Claims and litigations for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $21.8 million ($18.8 million in 2023) as at March 31, 2024.

c. Contract policing agreements

The contract policing agreements entitle the contract partner to receive proceeds on the disposal of contract policing assets equivalent to the cost-sharing ratio established by the agreement. While it is likely that a contract policing asset will be disposed of at some point in the future, the amount of the liability cannot be reasonably estimated as the applicable credit to the contract partner is contingent on the proceeds (if any) from disposal of the asset.

18. Related party transactions

The RCMP is related as a result of common ownership to all government departments, agencies, and Crown corporations. Related parties also include individuals who are members of key management personnel or close family members of those individuals, and entities controlled by, or under shared control of, a member of key management personnel or a close family member of that individual.

The RCMP enters into transactions with these entities in the normal course of business and on normal trade terms.

a. Common services provided without charge by other government departments

During the year, the RCMP received services without charge from certain common service organizations, related to accommodation, legal services, the employer’s contribution to the health and dental insurance plans and workers’ compensation coverage. These services provided without charge have been recorded at the carrying value in the RCMP’s Statement of Operations and Departmental Net Financial Position as follows:

Table 28: Common services provided without charge by other government departments (in thousands of dollars)
2024 2023
Employer's contribution to the health and dental insurance plans 356,284 325,729
Accommodation 121,776 109,510
Legal services 2,949 2,109
Workers' compensation 113 109
Total 481,122 437,457

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as payroll and cheque issuance services provided by PSPC and audit services provided by the Office of the Auditor General are not included in the RCMP’s Statement of Operations and Departmental Net Financial Position.

b. Other transactions with other government departments and agencies

Table 29: Other transactions with other government departments and agencies (in thousands of dollars)
2024 2023
Expenses 658,392 536,724
Revenues 13,801 13,945

Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

19. Segmented information

Presentation by segment is based on the RCMP’s core responsibilities. 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 revenues generated for the main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Table 30: Segmented information (in thousands of dollars)
Contract and Indigenous Policing Federal Policing Specialized Policing Services Internal Services Expenses incurred on behalf of Government 2024 total 2023 total
Operating expenses
Salaries and employee benefits 2,970,276 803,337 510,634 623,392 - 4,907,639 5,749,070
Professional and special services 448,620 100,915 51,882 115,919 - 717,336 647,205
Rentals 163,033 48,367 18,465 55,244 - 285,109 277,377
Transportation and communications 141,100 59,768 19,239 20,319 - 240,426 227,140
Amortization of tangible capital assets 105,020 17,308 29,925 36,091 - 188,344 172,316
Machinery and equipment, including parts and consumable tools 90,086 15,509 27,830 8,124 - 141,549 138,024
Utilities, materials and supplies 138,254 15,358 15,603 2,591 - 171,806 170,199
Repair and maintenance 64,747 7,334 4,931 7,737 - 84,749 79,984
Claims, ex-gratia and court awards 10,011 574 66 661 - 11,312 12,737
Usage of inventory 22,773 3,502 2,638 7,112 - 36,025 37,977
Payments in lieu of property taxes 14,257 1,913 1,116 3,730 - 21,016 20,307
Information 1,820 726 1,664 1,055 - 5,265 3,884
Other 47,051 21,530 38,058 12,648 (4,749) 114,538 77,811
Total operating expenses 4,217,048 1,096,141 722,051 894,623 (4,749) 6,925,114 7,614,031
Transfer payments
Individuals 494,178 120,811 29,143 - - 644,132 528,963
Other levels of Government - - 62,556 - - 62,556 (58,710)
Other 373 - 526 - - 899 957
Total transfer payments 494,551 120,811 92,225 - - 707,587 471,210
Total expenses 4,711,599 1,216,952 814,276 894,623 (4,749) 7,632,701 8,085,241
Revenues
Policing services 3,138,627 - 4,622 - - 3,143,249 2,841,723
Firearms licence fees - - 38,159 - - 38,159 32,817
Other revenues 12,697 748 37,623 17,535 - 68,603 63,103
Revenues earned on behalf of Government (982,369) (128) (49,121) (4,750) - (1,036,368) (912,466)
Total revenues 2,168,955 620 31,283 12,785 - 2,213,643 2,025,177
Net cost of operations before government funding and transfers 2,542,644 1,216,332 782,993 881,838 (4,749) 5,419,058 6,060,064

20. Comparative information

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

Date modified: