That is correct. The $39 million corresponded to the value of the work that had been done to develop a system as of March 31, 2003. That sum was not recorded until the following year, when the amount was paid. That creates a problem, because the Canadian Firearms Program became a separate department with its own budget. So it no longer had the flexibility, so as to speak, that the Department of Justice had. The $39 million had a significant impact on the authorized amount. That is why they realized in February that they would be exceeding the authorized amount.
On May 18th, 2006. See this statement in context.