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($ millions) | 2004-2005 | 2005-2006 | 2006-2007 | |||
---|---|---|---|---|---|---|
Actual | Actual | Main Estimates |
Planned Spending |
Total Authorities |
Actual | |
Regulation of Communications in the Public Interest | 44.0 | 46.5 | 45.6 | 45.6 | 48.0 | 47.6 |
Less: Respendable Revenue (note 1 & 2) | 37.6 | 38.6 | 39.8 | 39.8 | 39.9 | 39.9 |
Net Expenditures | 6.4 | 7.9 | 5.8 | 5.8 | 8.1 | 7.7 |
Adjustments: Supplementary Estimate: Operating Budget Carry Forward |
1.9 | |||||
Total Net Expenditures | 6.4 | 7.9 | 5.8 | 7.7 | 8.1 | 7.7 |
Less: Non-Respendable revenue (note 2) | 118.1 | 123.1 | - | 135.5 | 135.9 | 135.9 |
Plus: Cost of services received without charge (note 3) | 15.5 | 15.5 | - | 15.9 | 15.2 | 15.2 |
Net cost (note 4) | (96.2) | (99.7) | 5.8 | (111.9) | (112.6) | (113) |
Full-Time Equivalents (note 5) | 401 | 396 | - | 422 | - | 409 |
Note 1 The CRTC has vote-netting authority. Vote-netting is a means of funding selected government programs or activities whereby Parliament authorizes a department or agency to apply revenues towards costs directly incurred for specific activities. The Part I broadcasting licence fees and the telecommunications fees are used to finance the Commission’s operating budget.
Note 2 For more information on CRTC revenues refer to the section entitled "Explanation of Revenue".
Note 3 The costs of services provided by other departments (Table 4) includes: the regulation of the broadcasting Spectrum by Industry Canada; the accommodation provided by Public Works and Government Services Canada; the employer’s share of employees’ insurance premium and expenditures paid by Treasury Board Secretariat.
Note 4 Brackets indicate that the revenue received exceeds the gross costs of program
Note 5 Full time equivalents (FTEs) reflect the human resources that the CRTC uses to deliver its program and services. The number is based on a calculation that considers full-time, part-time, term and casual employment. The CRTC is no longer required to control the number of FTEs it may use. Rather, CRTC manages a personnel budget within its operating expenditures and has the latitude to manage as needed. This data is included for information purposes only.
($ millions) | 2006–2007 | |||||
---|---|---|---|---|---|---|
Program Activity | Budgetary | Plus: Non-budgetary | Total | |||
Operating | Total: Gross Budgetary Expenditures | Less: Respendable Revenue |
Total: Net Budgetary Expenditures |
Loans, Invest. & Advances | ||
Regulation & supervision of the Canadian broadcasting industry | ||||||
Main Estimates | 23.4 | 23.4 | 20.4 | 3.0 | - | 3.0 |
Planned Spending | 23.4 | 23.4 | 20.4 | 3.0 | - | 3.0 |
Total Authorities | 24.4 | 24.4 | 20.5 | 3.9 | - | 3.9 |
Actual Spending | 23.7 | 23.7 | 20.5 | 3.2 | - | 3.2 |
Regulation & monitoring of the Canadian telecommunications industry | ||||||
Main Estimates | 22.2 | 22.2 | 19.4 | 2.8 | - | 2.8 |
Planned Spending | 22.2 | 22.2 | 19.4 | 2.8 | - | 2.8 |
Total Authorities | 23.6 | 23.6 | 19.4 | 4.2 | - | 4.2 |
Actual Spending | 23.9 | 23.9 | 19.4 | 4.5 | - | 4.5 |
This table provides information regarding that portion of the Commission’s budget that is funded through appropriations.
($ millions) | 2006-2007 | ||||
---|---|---|---|---|---|
Vote or Statutory Item |
Canadian Radio-television and Telecommunications Commission | Main Estimates |
Planned Spending |
Total Authorities |
Actual |
45 | Program expenditures | - | 1.9 | 2.7 | 2.3 |
(S) | Contributions to employee benefit plans | 5.8 | 5.8 | 5.4 | 5.4 |
Total | 5.8 | 7.7 | 8.1 | 7.7 |
($ millions) |
2006–2007 Actual Spending |
---|---|
Accommodation provided by Public Works and Government Services Canada | 2.7 |
Contributions covering employers’ share of employees’ insurance premiums and expenditures paid by TBS | 2.5 |
Worker’s compensation coverage provided by Human Resources and Social Development Canada (actual amount is $43K) | - |
Regulation of Broadcasting Spectrum - Industry Canada | 10.0 |
Total 2006–2007 Services received without charge | 15.2 |
($ millions) | Actual 2004-2005 |
Actual 2005-2006 |
2006-2007 | |||
---|---|---|---|---|---|---|
Main Estimates |
Planned Revenue |
Total Authorities |
Actual | |||
Respendable Revenue (note 1) | ||||||
Regulation of Communications in the Public Interest | ||||||
Broadcasting Licence Fees Part I | 19.8 | 20.0 | 20.4 | 20.4 | 20.5 | 20.5 |
Telecommunications Fees | 17.8 | 18.6 | 19.4 | 19.4 | 19.4 | 19.4 |
Total Respendable Revenue | 37.6 | 38.6 | 39.8 | 39.8 | 39.9 | 39.9 |
Non-Respendable Revenue (note 2) | ||||||
Broadcasting Licence Fees | ||||||
Part I | 6.0 | 5.1 | - | 6.5 | 6.5 | 6.5 |
Part II | 107.2 | 112.2 | - | 121.8 | 121.9 | 121.9 |
Telecommunications Fees | 4.9 | 5.5 | - | 7.2 | 7.2 | 7.2 |
Other Revenue: (note 3) | - | 0.3 | - | - | 0.3 | 0.3 |
Total Non-Respendable Revenue | 118.1 | 123.1 | - | 135.5 | 135.9 | 135.9 |
Total Revenue (note 4) | 155.7 | 161.7 | 39.8 | 175.3 | 175.8 | 175.8 |
Note 1 The CRTC retains respendable revenue to fund its operating budget (i.e. vote-netted revenue).
Note 2 Non-respendable revenue for Part I broadcasting licence fees and CRTC telecommunications fees recover the costs incurred by other federal government departments for services (excluding Industry Canada spectrum management) rendered without charge to the CRTC as well as the statutory costs of employee benefit plans. Part II broadcasting fees are also considered to be non-respendable revenue.
Note 3 Other revenue is comprised of adjustment to prior years payables and miscellaneous revenue such as interest on outstanding fees.
Note 4 All revenues are credited to the Consolidated Revenue Fund.
The CRTC collects fees under the authority of the Broadcasting Act and Telecommunications Act and the regulations made pursuant to these Acts, namely the Broadcasting Licence Fee Regulations, 1997 and the Telecommunications Fee Regulations, 1995. For fiscal year 2006-2007:
Section 11 of the Broadcasting Act empowers the Commission to make regulations respecting licence fees. These regulations apply to all licensees other than those classes of undertakings specifically exempted under section 2 of the fee regulations. Every licensee subject to the regulations is required to pay a Part I and a Part II licence fee to the Commission annually. For 2006-2007 the CRTC collected a total of $148.9 million from broadcasting undertakings ($27.0 million in Part I fees and $121.9 million in Part II fees).
The Part I fee is based on the broadcasting regulatory costs incurred each year by the Commission and other federal departments or agencies, excluding Industry Canada spectrum management costs (which are recovered as a component of Part II licence fees) and is equal to the aggregate of:
The estimated total broadcasting regulatory costs of the Commission are set out in the Commission’s Expenditure Plan published in Part III of the Estimates of the Government of Canada (i.e. Part III Report on Plans and Priorities). There is an annual adjustment amount to the Part I fee to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the licensee in a following year’s invoice.
The Part II fee is calculated at 1.365% of a licensee’s gross revenue derived from broadcasting activities in excess of an applicable exemption limit. The CRTC collects the Part II fees on behalf of the government, with all revenues collected being deposited to the Government of Canada’s Consolidated Revenue Fund (CRF). The rationale for assessing the Part II licence fee is three-fold:
Several legal proceedings have been filed in the Federal Court of Canada by broadcasters2 challenging the legality of the Part II Licence Fee. These claims also seek the return of fees paid pursuant to section 11 of the Broadcasting Licence Fee Regulations, 1997 (the Regulations) from 1998 to 2006, plus interest and costs.
On December 14, 2006, a decision was rendered by the Federal Court declaring that
Fees prescribed by Section 11 of the Regulations were suspended for a maximum of nine (9) months to allow the appropriate branch of the government to react and to put in effect this judgement.
In January 2007, the plaintiffs filed Notices of Appeal regarding the portion of the decision of the Federal Court refusing the request for repayment of Part II licence fees, and the Crown filed Notices of Cross-Appeal regarding the issue of fee versus tax.
Section 68 of the Telecommunications Act sets out the authority for collecting telecommunications fees from carriers that the Commission regulates. Each company that files tariffs must pay fees based on its operating revenue, as a percentage of the revenue of all the carriers that file tariffs. For 2006-2007, the CRTC collected $26.6 million in telecommunications fees.
The annual fees the CRTC collects is equal to the aggregate of:
The estimated total telecommunications regulatory costs of the Commission are set out in the Commission’s Expenditure Plan published in Part III of the Estimates of the Government of Canada (i.e., Part III Report on Plans and Priorities). There is an annual adjustment amount to the telecommunications fees to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the carriers in a following year’s invoice.
The CRTC’s dispute resolution process regarding the assessment of broadcasting licence fees and telecommunications fees is summarized as follows:
The only fee that the CRTC currently collects which is subject to the reporting requirements of the User Fees Act relates to the processing of access requests filed under the Access to Information Act.
Name of Fee | Fee Type | Fee Setting Authority | Date Last Modified | 2006-2007 | Planning Years | |||
---|---|---|---|---|---|---|---|---|
Actual Revenue ($000) |
Full Cost ($000) |
Fiscal Year | Forecast Revenue ($000) |
Estimated Full Cost ($000) |
||||
Access to Information Fees | Other Products and Services (O) | Access to Information Act | 1992 | Note 1 | $0.1M | 2007-2008 2008-2009 2009-2010 |
Note 1 Note 1 Note 1 |
$0.1M $0.1M $0.1M |
Performance Standards | Requests are completed as per the standards indicated in the Access to Information Act. Section 7 of the Act states that access to a record requested under this Act shall, subject to sections 8, 9 and 11 be made available within thirty (30) days after the request is received | |||||||
Performance Results | During FY 2006-2007, 34 requests out of 36 were completed: 19 were completed within 30 days, 5 within 31 to 60 days and 10 within 61 to 120 days. Two requests are still pending at the end of FY 2006-2007 |
Note 1 The Access to Information revenue is negligible: $199.60 received in FY 2006-2007. The CRTC forecasts that the revenue associated with these fees and the full cost in future years will approximate those amounts reported for 2006-2007.
CRTC assesses fees pursuant to the Broadcasting Licence Fee Regulations 1997, and the Telecommunications Fee Regulations 1995. The CRTC has received a legal opinion indicating that the Part I broadcasting licence fees and telecommunications fees are considered to be external "regulatory fees" and not "user fees" as defined in the User Fees Act. Thus these fees, and the external reporting of any information related to these fees, are not subject to the provisions of the User Fees Act (UFA), but rather the Treasury Board Policy on Service Standards for External Fees. In order to be as comprehensive and transparent as possible with respect to CRTC external fees, information on broadcasting and telecommunications fees is being presented in the following table.
Name of Fee | Fee Type | Fee Setting Authority | Date Last Modified | 2006-2007 | Planning Years | |||
---|---|---|---|---|---|---|---|---|
Actual Revenue ($000) |
Full Cost ($000) |
Fiscal Year | Forecast Revenue ($000) |
Estimated Full Cost ($000) |
||||
Broadcasting Licence Fees
Part I
Part II (notes 1 & 2) |
Regulatory (R)
Right & Privilege |
Broadcasting Act (Section 11) Broadcasting Licence Fee Regulations 1997 |
1997 |
$27.0M
121.9M |
$27.0M
$10.0M |
2007-2008 2007-2008 |
$28.0M $- |
$28.0M $10.0M |
Telecommunications Fees | Regulatory (R) |
Telecommunications Act (Section 68)
Telecommunications Fee Regulations 1995 |
1995 |
|
|
|
|
|
$175.5M | $63.6M | 2007-2008 2008-2009 2009-2010 |
$54.5M $52.0M $52.0M |
$64.5M $62.0M $62.0M |
Note 1 The rationale for assessing Part II fee is three-fold:
Note 2 No revenues for Part II licence fees have been forecasted for these years. As indicated in a previous section entitled Part II Licence Fee and Legal Proceeding, a decision rendered by the Federal Court has declared the Section 11 of the Regulations ultra vires the authority conferred on the CRTC by Section11 of the Broadcasting Act to establish a schedule of fees. The amounts reflected in the estimated full cost column pertain to Industry Canada costs associated with broadcasting spectrum management.
Broadcasting Services | Service Standards | Stakeholders | Method of annual consultation |
---|---|---|---|
1. Administrative Route | Applications that do not require a public process, including transfer of ownership 80% in 2 months 90% in 3 months |
1. Broadcasting Industry3
2. Canadian public |
Public notice process (Note) |
2. Public Notice Route (excluding licence renewals) |
Applications that do not give rise to opposing interventions or policy issues 80% in 6 months 90% in 8 months Applications that give rise to opposing interventions, but do not raise policy issues Applications that raise policy issues |
||
3. Licence renewals by public notice route | Applications that do not raise policy issues 80% in 8 months 90% in 10 months |
Note: In Call for comments on the Commission’s service standards, Broadcasting Public Notice CRTC 2006-16, 10 February 2006, the Commission proposed service standards for the issuance of decisions on broadcasting applications in a timely manner and according to a predictable schedule.
As set out in Introduction of service standards for certain broadcasting applications, Broadcasting Circular CRTC 2006-2 (Circular 2006-2), 5 April 2006, the comments received from the broadcasting industry supported the Commission’s commitment to ensure that decisions on broadcasting applications are issued in a timely fashion. According to the parties, improved efficiency and accountability in the Commission’s licensing activities would provide for greater certainty in a rapidly changing industry. Certain parties called for even more stringent service standards than those proposed and suggested that additional measures should be put in place by the Commission to streamline its procedures.
In Circular 2006-2, the Commission introduced new service standards for its processing of certain types of applications filed after 31 March 2006. These include applications for licence amendments and licence renewals currently processed using the public notice approach, as well as applications processed using the administrative approach that does not entail a public process.
The streamlining processes below are monitored pursuant to Streamlined processes for certain broadcasting applications, Broadcasting Circular CRTC 2006-1.
Processing routes/ Measurable indicators |
Q1 | Q2 | Q3 | Q4 | Year to date |
---|
1. Administrative route
Received | 42 | 25 | 53 | 38 | 158 |
Returned (d) | 6 | 7 | 6 | 4 | 23 |
Total to be processed | 36 | 18 | 47 | 34 | 135 |
Incomplete at reception | 10 | 6 | 35 | 25 | 76 |
Indicator Letter of clarification sent within 15 business days (c) |
8 of 10 (80%) |
5 of 6 (83%) |
31 of 35 (89%) |
21 of 25 (84%) |
65 of 76 (86%) |
Complete at reception | 26 | 12 | 12 | 9 | 59 |
Indicator Letter of Approval issued within 15 business days (b) |
17 of 26 (65%) |
10 of 12 (83%) |
10 of 12 (83%) |
8 of 9 (89%) |
45 of 59 (76%) |
2. Public notice route (excluding renewals/do not give rise to policy issues)
Received | 53 | 35 | 39 | 40 | 167 |
Returned (d) | 5 | 2 | 7 | 8 | 22 |
Total to be processed | 48 | 33 | 32 | 32 | 145 |
Incomplete at reception | 37 | 21 | 26 | 22 | 106 |
Indicator Letter of clarification sent within 15 business days (c) |
36 of 37 (97%) |
20 of 21 (95%) |
23 of 26 (88%) |
20 of 22 (91%) |
99 of 106 (93%) |
Complete at reception | 11 | 12 | 6 | 10 | 39 |
Indicator Public Notice issued within 15 business days (a) |
11 of 11 (100%) |
8 of 12 (67%) |
5 of 6 (83%) |
9 of 10 (90%) |
33 of 39 (85%) |
Only applications received after 31 March 2006 are considered in these reports.
Indicators: Under Broadcasting Circular CRTC 2006-1, the objective is to ensure that within 15 business days of receiving an application as described, the Commission will issue one of the following:
(a) a public notice announcing the application;
(b) a letter approving the application;
(c) a letter requesting clarification; or
(d) a letter returning an application that is deemed incomplete.
The service standards below are monitored pursuant to Introduction of service standards for certain broadcasting applications, Broadcasting Circular CRTC 2006-2.
Processing routes/ Service standards |
Q1 | Q2 | Q3 | Q4 | Year to date |
---|
1. Administrative route
Decided | 27 | 24 | 44 | 25 | 120 |
Service standards 80% in 2 months |
100% |
83% |
100% |
92% |
94% |
90% in 3 months | 100% | 100% | 100% | 100% | 100% |
2. Public notice route (excluding renewals/do not give rise to policy issues)
Decided (Without opposing interventions) |
0 |
21 |
20 |
29 |
70 |
Service standards 80% in 6 months |
N/A |
100% |
90% |
97% |
96% |
90% in 8 months | N/A | 100% | 100% | 100% | 100% |
Decided (With opposing interventions) |
1 |
9 |
21 |
10 |
41 |
Service standards 80% in 8 months |
100% |
100% |
100% |
100% |
100% |
90% in 10 months | 100% | 100% | 100% | 100% | 100% |
3. Licence renewals by public notice route
Decided | 0 | 0 | 0 | 0 | 0 |
Service standards 80% in 8 months |
N/A |
N/A |
N/A |
N/A |
N/A |
90% in 10 months | N/A | N/A | N/A | N/A | N/A |
Only applications received after 31 March 2006 are considered in this report.
Q1 = 1 April 2006 to 30 June 2006
Q2 = 1 July 2006 to 30 September 2006
Q3 = 1 October 2006 to 31 December 2006
Q4 = 1 January 2007 to 31 March 2007
Service Standards: Under Broadcasting Circular CRTC 2006-2, the Commission has set service standards for the processing of these applications as described in the table above.
Service Standards 1 and 2 below are monitored pursuant to Introduction of a streamlined process for retail tariff filings, Telecom Circular CRTC 2005-6 and confirmed in Finalization of the streamlined process for retail tariff filings, Telecom Circular CRTC 2005-9, while Service Standard 3 is monitored pursuant to the Telecommunications Act.
Service Standards | Measurable indicators | Q1 | Q2 | Q3 | Q4 | Year to date |
---|---|---|---|---|---|---|
Retail tariff filings received subject to 10-business day reporting | (191) | (163) | (195) | (151) | (700) | |
1. Ten business day initiative - inform applicant of status | ||||||
a) Interim decision issued | 85% of interim decisions issued in 10 business days | 100% (132 of 132) |
99% (128 of 129) |
99% (127 of 128) |
99% (133 of 134) |
99% (520 of 523) |
b) Issues identified (letter) | 85% of letters issued in 10 business days | 95% (41 of 43) |
95% (20 of 21) |
98% (45 sur 46) |
92% (12 of 13) |
96% (118 of 123) |
c) Interrogatories (letter) | 85% of letters issued in 10 business days | 100% (9 of 9) |
100% (2 of 2) |
100% (3 sur 3) |
100% (2 of 2) |
100% (16 of 16) |
d) Closed as deficient (letter) | 85% of letters issued in 10 business days | 100% (7 of 7) |
100% (11 of 11) |
94% (17 sur 18) |
100% (2 of 2) |
97% (37 of 38) |
2. Average processing time for initial disposition* of applications | 30 business days | 9.8 | 8.4 | 8.5 | 8.7 | 8.9 |
3. Initial dispositions issued | 85% in 45 business days | 100% | 98.8% | 100% | 100% | 99.9% |
* Initial disposition would be the decision or the interim decision if one was issued, or a letter to the applicant indicating that the file is being closed as the application is deemed deficient.
(n) = Number of applications received from 1 April 2006. Only applications received after that date are considered in these service standards.
Q1 = 1 April 2006 to 30 June 2006
Q2 = 1 July 2006 to 30 September 2006
Q3 = 1 October 2006 to 31 December 2006
Q4 = 1 January 2007 to 31 March 2007
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.
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 fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the department's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the department's Departmental Performance Report is consistent with these financial statements.
Management maintains a system of financial management and internal control designed to provide reasonable assurance that (a) financial information is reliable, (b) assets are safeguarded, (c) transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, are within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.
The financial statements of the Commission have not been audited.
Konrad von Finckenstein, Q.C. Chairman |
Robert A Morin Secretary General |
Gatineau, Canada
Date: 7 August, 2007
Canadian Radio-television and Telecommunications Commission
|
||||
2006-07 | 2005-06 | |||
---|---|---|---|---|
Broadcasting (Note 1) |
Telecommunications (Note 1) |
Total | ||
Expenses | ||||
Salaries and employees benefits |
19,513,169 |
20,018,244 |
40,531,413 |
40,954,992 |
Spectrum Management cost (Note 9(a)) |
10,000,000 |
- |
10,000,000 |
10,000,000 |
Professional and special services |
2,052,760 |
2,163,158 |
4,215,918 |
3,953,119 |
Accommodation |
1,354,000 |
1,354,000 |
2,708,000 |
2,982,309 |
Information |
1,429,381 |
239,405 |
1,668,786 |
1,927,567 |
Travel and relocation |
869,792 |
730,157 |
1,599,949 |
1,690,123 |
Amortization expenses |
354,353 |
354,353 |
708,706 |
542,614 |
Repair and maintenance |
346,354 |
345,652 |
692,006 |
384,169 |
Materials and supplies |
204,026 |
198,175 |
402,201 |
397,663 |
Furniture and equipment |
169,900 |
175,830 |
345,730 |
228,365 |
Rentals |
191,471 |
105,713 |
297,184 |
278,035 |
Other |
6,072 |
6,082 |
12,154 |
4,694 |
Bad debt expenses (adjustment to Allowance for doubtful accounts) |
(26,524) |
(26,524) |
(53,048) |
328,016 |
Total expenses |
36,464,754 |
26,664,245 |
63,128,999 |
63,671,666 |
Revenues | ||||
Rights and privileges |
121,850,542 |
- |
121,850,542 |
121,211,147 |
Regulatory fees |
26,956,226 |
26,631,225 |
53,587,451 |
49,178,682 |
Other revenues |
21,204 |
7,820 |
29,024 |
259,057 |
Total revenues |
148,827,972 |
26,639,045 |
175,467,017 |
161,648,886 |
Net results of operations |
(112,363,218 |
25,200 |
(112,338,018) |
(97,977,220) |
The accompanying notes form an integral part of these financial statements |
Canadian Radio-television and Telecommunications Commission
|
||
2006-2007 |
2005-2006 |
|
---|---|---|
ASSETS | ||
Financial assets | ||
Accounts receivables and advances (Note 4) |
738,052 |
575,134 |
Total financial assets |
738,052 |
575,134 |
Non-financial assets | ||
Tangible capital assets (Note 5) |
1,100,091 |
1,432,669 |
Total non-financial assets |
1,100,091 |
1,432,669 |
Total Assets |
1,838,143 |
2,007,803 |
LIABILITIES | ||
Accounts payable and accrued liabilities (Note 6) |
3,184,068 |
3,153,107 |
Deferred revenue |
26,110 |
- |
Vacation pay and compensatory leave |
2,114,470 |
1,929,813 |
Accrued employee severance benefits (Note 7(b)) |
7,362,397 |
7,350,261 |
Total Liabilities |
12,687,045 |
12,433,181 |
Equity of Canada |
(10,848,902) |
(10,425,378 |
Total liabilities and Equity of Canada |
1,838,143 |
2,007,803 |
Contingent liabilities (Note 8)
The accompanying notes form an integral part of these financial statements |
Canadian Radio-television and Telecommunications Commission
|
||
2006-07 | 2005-06 | |
---|---|---|
Equity of Canada, beginning of year | (10,425,378) | (7,015,628) |
Net results of operations | 112,338,018 | 97,977,220 |
Current year appropriations used (Notes 3) | 7,712,095 | 7,897,487 |
Revenue not available for spending (Note 3) | (135,601,317) | (123,065,887) |
Change in net position in the Consolidated Revenue Fund (Note 3) | (79,130) | (1,777,537) |
Services received without charge from other government departments (Note 9(a)) | 15,206,810 | 15,558,967 |
Equity of Canada, end of year | (10,848,902) | (10,425,378) |
The accompanying notes form an integral part of these financial statements |
Canadian Radio-television and Telecommunications Commission
|
||
2006-07 |
2005-06 |
|
---|---|---|
Operating Activities |
||
Net results of operations |
(112,338,018) |
(97,977,220) |
Non-cash items |
||
Services provided without charge by other government departments included in the Statement of Operations (Note 9 (a)) |
(15,206,810) |
(15,558,967) |
Amortization of tangible capital assets (Note 5) |
(720,205) |
(542,614) |
(Gain) loss on disposal of capital assets (Note 5) |
63,702 |
- |
Variation in Statement of Financial Position
|
||
Increase (decrease) in accounts receivable and advances |
162,918 |
(5,338,912) |
(Increase) decrease in liabilities |
(253,864) |
1,955,440 |
Cash provided by operating activities |
(128,292,277) |
(117,462,273) |
Capital investment activities |
||
Acquisition of tangible capital assets (Note 5) |
397,744 |
516,336 |
Proceeds from disposal of tangible capital assets (Note 5) |
(73,819) |
- |
Cash used by capital investment activities |
323,925 |
516,336 |
Financing activities | ||
Net cash provided to Government of Canada |
127,968,352 |
116,945,937 |
The accompanying notes form an integral part of these financial statements |
CRTC was created by Parliament in 1968 under the Canadian Radio-television and Telecommunications Commission Act. The CRTC reports to Parliament through the Minister of Canadian Heritage.
The CRTC is vested with the authority to regulate and supervise all aspects of the Canadian broadcasting system, as well as the telecommunications services providers and common carriers that come under federal jurisdiction. The CRTC’s powers in the area of broadcasting regulation derive from the Broadcasting Act. Its powers over telecommunications come from the Telecommunications Act and from various "special acts" of Parliament passed for specific telecommunications companies.
The following are the program activity descriptions for the CRTC:
Regulation and Supervision of the Canadian Broadcasting Industry (Broadcasting)
Supervise and regulate all aspects of the Canadian broadcasting system in order to implement the broadcasting policy set out in the Broadcasting Act.
Regulation and Monitoring of the Canadian Telecommunications Industry (Telecommunications)
Ensure the implementation of Canadian telecommunications objectives set out in the Telecommunications Act and to ensure that Canadian carriers provide telecommunications services and charge rates on terms that are just and reasonable, and do not unjustly discriminate or provide an unreasonable preference toward any person.
The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.
Significant accounting policies are as follows:
Asset Class | Amortization period |
---|---|
Informatics equipment | 3 years |
Informatics software | 5 years |
Vehicles | 5 years |
Equipment | 5 years |
CRTC receives the major portion of its funding through fees assessed against the regulated industries, i.e. Broadcasting and Telecommunications, as well as a minor portion from Parliamentary appropriations. Since Parliamentary appropriations are not calculated on the accrual accounting basis, there is a difference between appropriations used and: (a) net results of operations; and (b) net cash provided to Government of Canada. The differences are reconciled in the following tables.
(a) Reconciliation of net results of operations to current year appropriations used | ||
2006-07 | 2005-06 | |
(in dollars) |
||
Net results of operations | (112,338,018) | (97,977,220) |
Adjustments for items affecting net results from operations but not affecting appropriations: | ||
Add(Less): | ||
Services provided without charge | (15,206,810) | (15,558,967) |
Employee severance benefits | (12,136) | (1,056,203) |
Amortization of tangible capital assets | (708,707) | (542,614) |
Reversal of legal expenses charged to Justice appropriation | (148,715) | (203,166) |
Bad debt expenses | 53,049 | (328,016) |
Vacation pay and compensatory leave | (184,656) | (63,623) |
Revenue not available for spending | 135,601,317 | 123,065,887 |
Refund of prior years expenses and adjustment to payables at year end | 280,642 | 45,073 |
(Loss) gain on disposal and write-down of tangible capital assets | (10,116) | - |
Sub-total | 119,663,868 | 105,358,371 |
Adjustments for items not affecting net results of operations but affecting appropriations | ||
Add(less): | ||
Acquisitions of tangible capital assets | 386,245 | 516,336 |
Current year appropriations used | 7,712,095 | 7,897,487 |
(b) Appropriations provided and used | ||
Vote 45-Program expenditures and transfer from Treasury Board Vote 5 and 15 | 2,778,301 | 3,341,601 |
Statutory amounts | 5,374,297 | 5,613,207 |
Total appropriation available | 8,152,598 | 8,954,808 |
Appropriations available for future years | (440,503) | (1,057,321) |
Current year appropriations used | 7,712,095 | 7,897,487 |
(c) Reconciliation of net cash provided to Government to current year appropriations used | ||
Net cash provided to Government | (127,968,352) | (116,945,937) |
Revenue not available for spending | 135,601,317 | 123,065,887 |
7,632,965 | 6,119,950 | |
Change in net position in the Consolidated Revenue Fund | ||
(Increase) decrease in accounts receivable and advances | (109,869) | 5,010,896 |
Increase (decrease) in accounts payable, accrued liabilities and deferred revenue | 57,071 | (3,075,266) |
Refund of prior years expenses | 280,643 | 45,073 |
Reversal of payments to Department of Justice | (148,715) | (203,166) |
79,130 | 1,777,537 | |
Current year appropriation used | 7,712,095 | 7,897,487 |
Accounts Receivable and Advances | ||
2006-07 | 2005-06 | |
(in dollars) |
||
Receivables from other Federal Government departments and agencies (Note 9 (b)) | 605,095 | 165,345 |
88,902 | 476,814 | |
Other | 57,390 | 4,497 |
751,387 | 646,656 | |
Less:Allowances for doubtful accounts on external receivables | (13,335) | (71,522) |
Total | 738,052 | 575,134 |
Cost | ||||
---|---|---|---|---|
Capital asset class | Opening balance | Acquisi-tions | Disposals and write-offs | Closing balance |
Equipment | 80,082 | 48,696 | - | 128,778 |
Vehicles | 45,406 | - | - | 45,406 |
Informatics Equipment | 584,954 | 152,906 | 49,432 | 688,428 |
Informatics Software | 2,323,803 | 196,142 | 24,387 | 2,495,558 |
Total | 3,034,245 | 397,744 | 73,819 | 3,358,170 |
Accumulated amortization | 2007 | 2006 | ||||
---|---|---|---|---|---|---|
Capital asset class |
Opening balance |
Amorti- zation |
Disposals and write-offs | Closing balance |
Net book value | Net book value |
Equipment | 24,025 | 16,016 | - | 40,041 | 88,737 | 56,057 |
Vehicles | 30,148 | 8,733 | - | 38,881 | 6,525 | 15,258 |
Informatics Equipment | 414,788 | 146,577 | 49,432 | 511,933 | 176,495 | 170,166 |
Informatics Software | 1,132,615 | 548,879 | 14,270 | 1,667,224 | 828,334 | 1,191,188 |
Total | 1,601,576 | 720,205 | 63,702 | 2,258,079 | 1,100,091 | 1,432,669 |
Accounts Payable and Accrued Liabilities |
||
---|---|---|
2006-07 | 2005-06 | |
(in dollars) |
||
Accounts payable-other Federal Government departments and agencies(Note 9(b)) | 215,434 | 157,890 |
Accounts payable-external parties | 1,301,177 | 1,197,368 |
Accruals-salaries | 1,561,420 | 1,725,071 |
Accruals-operating and maintenance | 106,037 | 72,778 |
Total Accounts Payable and Accrued Liabilities | 3,184,068 | 3,153,107 |
Severance benefits | ||
---|---|---|
2006-07 | 2005-06 | |
(in dollars) |
||
Accrued severance liabilities, beginning of year | 7,350,261 | 6,294,058 |
Expense for the year | 979,600 | 1,724,604 |
Benefits paid during the year | (967,464) | (668,401) |
Accrued severance liabilities, end of year | 7,362,397 | 7,350,261 |
As of 31 March 2007, the Government of Canada for matters involving the CRTC had one claim outstanding as a result of litigation which pertains to a challenge of the CRTC’s Part II broadcasting licence fees. In December 2006, the Federal Court declared ultra vires the regulation prescribing the Part II licence fees. This case has been appealed to the Federal Court of Appeal and the outcome is not known at this time. The financial impact of this litigation will be recorded in the financial statements of the CRTC if required once all legal proceedings are complete and the outcome of the litigation is known.
As a result of common ownership, CRTC is related to all Govenment of Canada departments, agencies, and Crown corporations. CRTC enters into transactions with these entities in the normal course of business and on normal trade terms.
(a) Services provided without charge:
During the year, CRTC received services without charge from other departments for items such as accommodation, the employer's contribution to the health and dental insurance plans. The services without charge that have been recognized in the department's Statement of Operations are indicated below.
2006-07 | 2005-06 | |
---|---|---|
(in dollars) |
||
Services provided without charge | ||
Workmen's Compensation expenses (Human Resources and Social Development Canada) | 42,810 | 42,005 |
Health & Dental expenses (Treasury Board Secretariat) | 2,456,000 | 2,534,653 |
Accommodation expenses (Public Works and Government Services Canada) | 2,708,000 | 2,982,309 |
Spectrum Management expenses (Industry Canada) | 10,000,000 | 10,000,000 |
Total | 15,206,810 | 15,558,967 |
Industry Canada is responsible for the management of the broadcasting spectrum. As part of this responsibility, Industry Canada conducts several activities including the issuance of technical certificates that accompany the broadcasting licences issued by the CRTC where the use of broadcasting spectrum is required, as well as monitoring for interference that could affect spectrum use. Total costs related to Industry Canada's broadcasting spectrum management are reported to the CRTC on an annual basis, as these costs are a component of the Part II broadcasting licence fees collected by the CRTC on behalf of the Government. Other services provided without charge to the CRTC as noted above are a component of the Part I broadcasting licence fee and the annual telecommunications fee collected by the CRTC.
The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General of Canada, are not included as an expense in the CRTC's Statement of Operations, nor are they recovered as a component of the CRTC Part I broadcasting licence fee or annual telecommunications fee.
(b) Payables and receivables outstanding at year-end with related parties:
2006-07 | 2005-06 | |
---|---|---|
(in dollars) |
||
Accounts receivable with other government departments and agencies | 605,095 | 165,345 |
Accounts payable to other government departments and agencies | 215,434 | 157,890 |
Comparative figures have been reclassified to conform to the current year’s presentation.
2005-11 OAG Chapter 5 - Support to Cultural Industries | 2005-11 BVG Chapitre 5 - Le soutien accordé aux industries culturelles | ||
5.99 Recommendation . The Canadian Radio-television and Telecommunications Commission should inform the Canadian Television Fund of the amount each cable or satellite distribution company should have paid it the previous year, and should require confirmation from the Canadian Television Fund that it received those amounts. | 5.99 Recommandation. Le Conseil canadien de la radiodiffusion et des télécommunications devrait informer le Fonds canadien de télévision des sommes que les entreprises de distribution par câble et par satellite auraient dû lui verser durant la dernière année et exiger que le Fonds canadien de télévision lui confirme les sommes qu'il a reçues. | ||
Entity(ies): | Canadian Radio-Television and Telecommunications Commission | Entité(s): | Conseil de la radiodiffusion et des télécommunications canadiennes |
Update N/A: | Mise à jour N/A: | ||
First evaluation year - No previous update / Première année d’évaluation - aucune mise à jour antérieure | |||
OAG Assessment N/A: First evaluation year - No previous assessment |
Évaluation du BVG N/A: Première année d’évaluation - aucune évaluation antérieure |
||
Update 2007 : | Mise à jour 2007 : | ||
On 15 March 2007, the CRTC provided the Canadian Television Fund (CTF) with a document that details the amounts that the CTF should expect to have received for the 2005 Broadcast year. The information was made available on a licensee-specific basis. Upon confirmation by the CTF of the amounts it received, the CRTC will follow up as necessary with those distribution companies who have not contributed the expected amounts. | Le 15 mars 2007, le CRTC a fournit un document détaillant les montants dont le Fonds des talents canadiens (FTC) devrait bénéficier pour l’année fiscale 2005. L’information a été rendue disponible d’après les spécifications individuelles des titulaires. Sur réception de la confirmation des montants reçus par le FTC, le CRTC effectuera les suivis nécessaires auprès des entreprises de distribution qui n’auront pas contribué les montants prévus. |
The CRTC follows and uses the Treasury Board Secretariat (TBS) travel policies. This includes the TBS Special Travel Authorities and the TBS Travel Directive, Rates and Allowances.
A graphical representation of the accountability and activity structure, including resource levels, is noted below.
Note: The CRTC reports to Parliament through the Minister of Canadian Heritage