The Financial Statements pertaining to the activities of the Canada Customs and Revenue Agency (CCRA) present the financial information in accordance with the accounting principles of the Government of Canada. The CCRA Statement of Operations – Agency Activities includes certain accrual accounting adjustments including adjustments for services provided by other government departments. The Auditor General of Canada's audit opinions pertaining to these financial statements are contained in this report. Beyond the audited financial statements, this document contains management discussions on the Agency's operations and the activities it administers.

We have added a new section in this year's financial statements providing unaudited supplementary financial information relating to the Agency's resource management performance for purposes of reporting to Parliament on the use of appropriations in 2001-2002. The CCRA's funding is provided by Parliament through annual appropriations. The CCRA reports its expenditures and performance to Parliament in the CCRA Performance Report together with details on the management of Parliamentary appropriations on modified cash basis of accounting, which is a different accounting basis than that used for financial statement reporting. This appropriation basis of accounting does not include, for example, certain accrual accounting adjustments for services provided by other government departments that are part of the audited financial statement of operations. A reconciliation between the expenditures reported in the CCRA Performance Report and those reported in the audited Financial Statement of Operations – Agency Activities is shown in Table 9 . The opinions of the Auditor General on the financial statements do not extend to this supplementary financial information.

The CCRA maintains financial and management control systems and practices that provide reasonable assurance the information presented constitutes a fair and frank accounting of how well the CCRA is performing against the objectives it set out to accomplish. To ensure a high level of assurance, Internal Audit conducts independent reviews of various aspects of the CCRA's performance information. In addition, the Board of Management's Audit Committee—which oversees management's responsibilities for maintaining adequate internal control and financial/performance reporting systems—meets with internal and external auditors on a regular basis. This committee recommends the Annual Report including financial statements to the Board of Management for subsequent approval by the Minister.