Financial statements, March 31, 2014

7.1. Notes to financial statements: Authority and purpose

The Canadian Grain Commission Revolving Fund ["CGC", the "Revolving Fund" or the "Fund"] derives its authority from the Canada Grain Act. The Canadian Grain Commission's mandate as set out in the Act is to, in the interest of grain producers, establish and maintain standards of quality for Canadian grain, regulate grain handling in Canada and to ensure a dependable commodity for domestic and export markets.

The Canadian Grain Commission Revolving Fund was established under Appropriation Act No. 6, 1994-1995. The Fund has a continuing non-lapsing authority from Parliament to make payments out of the Consolidated Revenue Fund for working capital, capital acquisitions and temporary financing of accumulated operating deficits, the total of which cannot exceed $2,000,000 at any time.

In the fall of 2012, two initiatives were announced that have impacted the services and organizational structure of the Canadian Grain Commission. Firstly, Bill C-45, containing proposed amendments to the Canada Grain Act, was introduced in Parliament. Secondly, on November 1, 2012, the Canadian Grain Commission launched consultations on Canadian Grain Commission user fees that reflected an updated Canada Grain Act and streamlined Canadian Grain Commission operations. Bill C-45 received Royal Assent on December 14, 2012. The amendments to the Canada Grain Act came into force on August 1, 2013. Updated user fees took effect August 1, 2013 concurrent with changes to the Canada Grain Act. In response to both the legislative changes and restructured user fees, the Canadian Grain Commission has adjusted its workforce [Note 6], organizational design, and operations.

Fiscal year 2013-14 is a transition year for the Canadian Grain Commission. The revised funding model which came into effect on August 1, 2013 is based on full cost recovery through user fees and ongoing appropriations. Until the implementation of this model, the Canadian Grain Commission was funded through its ongoing appropriations, fees collected and special appropriation.

In accordance with the Government’s policy on self-insurance, the Canadian Grain Commission does not carry its own insurance. The Canadian Grain Commission is not subject to income tax.