ARCHIVED - Public Service Commission of Canada

• Previous Page
• Table of Contents
•  

This page has been archived.

Section III – Supplementary Information

Table 1: Comparison of planned to actual spending and full-time equivalents

($ thousands)	Actual 2005-06 (Note 1)	Actual 2006-07 (Note 1)	2007-2008
			Main Estimates	Planned Spending	Total Budget Authorities	Total Actual
Program Activity 1: Appointment Integrity and Political Neutrality	23,771	16,538	18,580	17,051	19,684	16,993
Program Activity 2: Oversight of Integrity of Staffing and Political Neutrality	21,441	23,817	29,794	28,860	32,488	28,490
Program Activity 3: Staffing Services and Assessment	58,775	58,521	54,832	57,509	58,834	57,398
Total	103,987	98,876	103,206	103,420	111,006	102,881
Less: Non-respendable revenues (Note 2)	4,795	34	n/a	___	n/a	1,385
Plus: Cost of services received without charge	16,909	16,264	n/a	15,311	n/a	16,479
Total PSC spending	116,101	115,106	n/a	118,731	n/a	117,975
Full-time equivalents	932	932	n/a	1,015	n/a	993

Note 1: As a result of changes to the Program Activity Architecture, actual expenditures for 2005-2006 and 2006-2007 were realigned to reflect current activities.

Note 2: In 2005-2006, the PSC obtained approval to respend the revenues attributable to the Assessment and Counselling Services and Products. This authority however, was not brought into legal effect due to the federal election call and the dissolution of Parliament. Consequently, these revenues are reflected as non-respendable revenues. Since 2006-2007, the PSC has had the authority to respend revenues and these are reflected as part of the Staffing Services and Assessment Program Activity figures. The actual non-respendable revenues for 2006-2007 and 2007-2008 pertain to the miscellaneous revenues.

Table 2: Voted and statutory items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2007-2008 ($ thousands)
		Main Estimates	Planned Spending	Total Budget Authorities	Actual
80	Program expenditures	90,032	90,151	98,817	90,692
(S)	Contributions to employee benefit plans	13,174	13,269	12,189	12,189
(S)	Spending of proceeds from the disposal of surplus Crown assets	___	___	___	___
	Total	103,206	103,420	111,006	102,881

Table 3: PSC financial statements

PUBLIC SERVICE COMMISSION

Statement of Operations
For the year ended March 31

(in thousands of dollars)

	2008	2007
Expenses (Notes 10 and 13)
Staffing services and assessment
Staffing services	41,297	49,369
Assessment services	31,472	22,361
	72,769	71,730
Oversight of integrity of staffing and political neutrality
Audits, studies and evaluations	19,335	12,270
Investigations and early intervention mechanisms	9,233	10,810
Monitoring	5,199	4,356
	33,767	27,436
Appointment integrity and political neutrality
Policy, regulation and exclusion approval orders	7,986	7,835
Delegated appointment authorities	6,005	5,378
Non-delegated appointment authorities	5,444	5,018
	19,435	18,231
Total expenses	125,971	117,397
Revenues
Assessment and counselling services and products	10,752	6,511
Activities on behalf of:
Canada School of Public Service	119	333
Canada Public Service Agency	325	341
	444	674
Less: Costs recovered	(444)	(674)
Net cost of operations	115,219	110,886

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

PUBLIC SERVICE COMMISSION

Statement of Equity of Canada
For the year ended March 31

(in thousands of dollars)

	2008	2007
Equity of Canada, beginning of year	2,148	(2,610)
Net cost of operations	(115,219)	(110,886)
Net cash provided by Government of Canada	101,128	103,347
Change in Due from the Consolidated Revenue Fund	902	(3,967)
Services received without charge from other government departments and agencies (Note 12)	16,479	16,264
Equity of Canada, end of year	5,438	2,148

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

PUBLIC SERVICE COMMISSION

Statement of Cash Flow
For the year ended March 31

(in thousands of dollars)

	2008	2007
Operating activities (Note 13)
Cash received from:
Assessment and counselling services and products	8,787	5,278
Cash paid for:
Salaries and employee benefits	80,785	79,603
Professional and special services	12,651	10,835
Transportation and telecommunications	3,939	3,973
Informatics, office equipment, furniture and fixtures	1,678	2,218
Repair and maintenance	1,102	1,738
Rentals	1,015	1,386
Printing and publications services	686	562
Utilities, materials and supplies, and other payments	570	670
	102,426	100,985
Cash used by operating activities	93,639	95,707
Capital investment activities
Acquisitions of tangible capital assets	7,489	7,642
Proceeds from disposal of tangible capital assets	-	(2)
Cash used by capital investment activities	7,489	7,640
Net cash provided by Government of Canada	101,128	103,347

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

1. Authority and objectives

The Public Service Commission (PSC) of Canada is an independent agency established under the Public Service Employment Act (PSEA) and listed in schedules 1.1 and IV of the Financial Administration Act (FAA). The PSC is dedicated to building a public service that strives for excellence by protecting merit, non-partisanship, representativeness of Canadian society and the use of both official languages. This responsibility is performed in the best interests of the public service as part of Canada's governance system, by administering and applying the provisions of the PSEA and by carrying out responsibilities as provided for in the Employment Equity Act and the Official Languages Act. The new PSEA came into force in December 2005. This legislation emphasizes the PSC's accountability to Parliament and delegates staffing authority to deputy heads who in turn are accountable to the PSC for exercising this power. The Commission also carries out audits and investigations and administers measures under the new PSEA regarding political activities of public servants.

The PSC, from its offices in Ottawa and its seven regional offices, offers recruitment services that allow talented Canadians, drawn from across the country, to join the public service and continually renews staffing services to meet the needs of a modern and innovative public service. The PSC has three program activities that contribute to the achievement of its objectives:

The Appointment Integrity and Political Neutrality activity develops and maintains a policy and regulatory framework for safeguarding the integrity of public service staffing and ensuring political neutrality. This activity includes establishing policies and standards, providing advice, interpretation and guidance and administering delegated and non-delegated appointment authorities.

The Oversight of Integrity of Staffing and Political Neutrality activity provides an accountability regime for the implementation of the appointment policy and regulatory framework for safeguarding the integrity of public service staffing and ensuring political neutrality. This activity includes monitoring departments' and agencies' compliance with legislative requirements, conducting audits, studies and evaluations, carrying out investigations, and reporting to Parliament on the integrity of public service staffing.

The Staffing Services and Assessment activity develops and maintains systems that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies. It provides assessment-related products and services in the form of research and development, consultation, assessment operations and counselling for use in recruitment, selection and development throughout the federal public service. This activity also includes delivering staffing services, programs and products to departments and agencies, to Canadians and public servants, through client service units located across Canada.

2. Summary of significant accounting policies

(a) Basis of presentation

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, and year-end instructions issued by the Office of the Comptroller General.

(b) Parliamentary appropriations

The PSC is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the PSC do not parallel financial reporting according to Canadian generally accepted accounting principles for the public sector since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(c) Due from the Consolidated Revenue Fund

The PSC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the PSC is deposited to the CRF and all cash disbursements made by the PSC are paid from the CRF. Due from the CRF represents amounts of cash that the PSC is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.

(d) Accounts receivable

Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.

(e) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded as capital assets at their acquisition cost. Similar items under $5,000 are expensed in the Statement of Operations. The PSC does not capitalize intangibles. The cost of assets under development by the PSC includes material, direct labour and related overhead. Amounts included in assets under development are transferred to the appropriate class of asset upon completion, and are then amortized. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization period
Office equipment	3 and 10 years
Informatics hardware and infrastructure	4 and 5 years
Computer software	3 years
In-house developed software	3 to 10 years
Furniture and fixtures	15 years
Vehicles	6 years
Leasehold improvements	Lesser of 10 years or term of lease

(f) Salaries and benefits, and vacation leave

Salaries and benefits, and vacation leave are expensed as the salary benefits accrue to employees under their respective terms of employment. The employee salaries and benefits liability is calculated based on the respective terms of employment using the employees' salary levels at year end, and the number of days remaining unpaid at the end of the year. The liability for vacation leave is calculated at the salary levels in effect at March 31st for all unused vacation leave benefits accruing to employees. Employee vacation pay liabilities payable on cessation of employment represent obligations of the PSC that are normally funded through future years' appropriations.

(g) Employee future benefits

i. Pension benefits
The PSC's eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The PSC's contributions to the Plan are charged to expenses in the year incurred and represent the total pension obligation of the PSC. The PSC is not required under current legislation to make contributions with respect to any actuarial deficiencies of the Plan.

ii. Severance benefits
Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(h) Revenues

Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. Revenues that have been received but not yet earned are presented as deferred revenues.

(i) Services received without charge

Services received without charge from other federal government departments and agencies are recorded as operating expenses at their estimated cost. A corresponding amount is reported directly in the Statement of Equity of Canada.

(j) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the estimated 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.

3. Parliamentary appropriations

The PSC receives most of its funding through annual Parliamentary appropriations. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the PSC 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 appropriations used:

(in thousands of dollars)

	2008	2007
Net cost of operations	115,219	110,886
Adjustments for items affecting net cost of operations but not affecting appropriations:
Services received without charge	(16,479)	(16,264)
Amortization of tangible capital assets	(3,924)	(3,416)
Revenue not available for spending	1,385	34
Employee severance benefits	(1,104)	(116)
Vacation leave	(9)	34
Other	380	272
	95,468	91,430
Adjustments for items not affecting net cost of operations but affecting appropriations:
Acquisitions of tangible capital assets	7,489	7,642
Prepaid expenses	(76)	(196)
	7,413	7,446
Current year appropriations used	102,881	98,876

(b) Appropriations provided and used:

(in thousands of dollars)

	2008	2007
Parliamentary appropriations provided:
Voted - Operating expenditures	98,817	96,448
Statutory contributions to employee benefit plans	12,189	11,370
Spending of proceeds from disposal of surplus assets	-	2
	111,006	107,820
Less: Lapsed appropriations - operating expenditures 1	(8,125)	(8,944)
Current year appropriations used	102,881	98,876

1 The lapse in 2007-2008 is mainly due to staffing delays resulting from staff turnover, contract delays, the lapse in Devinat funding which is used for translation of appeal cases which is no longer a PSC program, the lapse related to the authority granted to the PSC to increase vote netted revenues by $3,500,000 in 2007-2008, and the re-profiling of funds to complete the Project Definition work for the Public Service Staffing Modernization Project. In total $4,770,000 was carried forward to 2008-2009.

(c) Reconciliation of net cash provided by Government to current year appropriations used:

(in thousands of dollars)

	2008	2007
Net cash provided by Government	101,128	103,347
Revenue not available for spending	1,385	34
Variation in accounts payable, accrued liabilities and accrued salary	1,494	(958)
Variation in accounts receivable and advances	(1,524)	(3,362)
Other adjustments	398	(185)
Current year appropriations used	102,881	98,876

4. Accounts receivable and advances

(in thousands of dollars)

	2008	2007
Receivables - Federal Government departments, agencies and Crown corporations	7,005	5,479
Receivables - External parties	8	12
Advances to PSC's Employees	8	6
Total	7,021	5,497

5. Tangible capital assets

(in thousands of dollars)

	Cost					2008	2007
	March 31, 2007	Acquisitions	Disposals, write-offs	Transfers	March 31, 2008	Net book value	Net book value
Office equipment	743	32	96	-	679	319	350
Informatics hardware and infrastructure	8,412	165	1,257	480	7,800	2,519	2,891
In-house developed software	15,355	527	-	752	16,634	8,771	10,263
Furniture and fixtures	770	89	37	-	822	628	579
Vehicles	25	-	-	-	25	8	12
Leasehold improvements	340	349	-	364	1,053	869	203
Assets under development	4,442	6,327	-	(1,596)	9,173	9,173	4,442
Total	30,087	7,489	1,390	-	36,186	22,287	18,740

(in thousands of dollars)

	2008
	Accumulated amortization
	March 31, 2007	Amortization	Disposals, write-offs	March 31, 2008
Office equipment	393	50	83	360
Informatics hardware and infrastructure	5,521	1,016	1,256	5,281
In-house developed software	5,092	2,771	-	7,863
Furniture and fixtures	191	36	33	194
Vehicles	13	4	-	17
Leasehold improvements	137	47	-	184
Total	11,347	3,924	1,372	13,899

Amortization expense for the year ended March 31, 2008 is $3,924,000 ($3,416,000 in 2006-2007).

6. Accounts payable and accrued liabilities

(in thousands of dollars)

	2008	2007
Payables - Federal Government departments, agencies and Crown corporations	2,030	1,957
Payables - External parties	5,952	5,167
Total	7,982	7,124

7. Employee benefits

(a) Pension benefits
 
The PSC eligible employees participate in the Public Service Pension 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 the Canada and Quebec Pension Plans benefits and they are indexed to inflation.

Both the employees and the PSC contribute to the cost of the Plan. The 2007-2008 expense amounts to $8,887,000 ($8,379,000 in 2006-2007), which represents approximately 2.1 times the employees' contributions.
 
The PSC'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.

(b) Employee severance benefits

The PSC provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:

(in thousands of dollars)

	2008	2007
Accrued benefit obligation, beginning of year	14,988	14,872
Expense for the year	2,977	2,067
Benefits paid during the year	(1,873)	(1,951)
Accrued benefit obligation, end of year	16,092	14,988

8. Contingent liabilities

Claims have been made against the PSC in the normal course of operations. Legal proceedings for claims totalling $315,000 were still pending at March 31, 2008 ($395,000 at March 31, 2007). Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements. In the opinion of management, the outcome of these suits is not determinable at this time.

9. Contractual obligations

The nature of the PSC's activities can result in some large multi-year obligations whereby the PSC will be obligated to make future payments when the services are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

	2009	2010	2011	2012 and thereafter	Total
Service contracts	2,607	176	-	-	2,783
Operating leases	164	95	70	5	334
Total	2,771	271	70	5	3,117

10. Expenses by major classification

(in thousands of dollars)

	2008	2007
Salaries and employee benefits	89,020	83,278
Professional and special services	13,770	10,828
Accommodation	10,111	10,032
Transportation and telecommunications	3,969	3,799
Amortization of tangible capital assets	3,924	3,416
Informatics, office equipment, furniture and fixtures	1,669	2,549
Repair and maintenance	1,276	1,660
Rentals	1,010	1,261
Printing and publications services	632	650
Utilities, materials and supplies, and other	590	424
Adjustment to the provision for contingent liabilities	-	(500)
Total	125,971	117,397

11. Related party transactions

The PSC is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The PSC enters into transactions with these entities in the normal course of business and on normal trade terms.

During 2007-2008, the PSC incurred expenses of $34,334,000 ($34,208,000 in 2006-2007) and earned revenues of $10,750,000 ($6,496,000 in 2006-2007) from transactions in the normal course of business with other federal government departments, agencies and Crown Corporations. These expenses include services received without charge as described in
Note 12.

12. Services received without charge

During the year, the PSC received services that were obtained without charge from other government departments and agencies. These services without charge have been recognized in the PSC's Statement of Operations as follows:

(in thousands of dollars)

	2008	2007
Public Works and Government Services Canada - accommodation	10,111	10,032
Treasury Board Secretariat - employer's share of insurance premiums	5,175	5,522
Justice Canada - legal services	919	440
Office of the Auditor General of Canada - audit services	141	134
Human Resources and Social Development Canada - employer's portion of Worker's compensation payments	133	136
Total	16,479	16,264

13. Comparative information

Comparative figures have been reclassified to conform to the current year's presentation.

Supplementary information on the following tables can be found on the Treasury Board of Canada Secretariat's Web site at http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

• Source of respendable and non-respendable revenues
• User fees / External fees 
• Details on project spending
• Response to Parliamentary Committees, the Auditor General and to the Public Service Commission on External Audits
• Internal Audits and Evaluations
• Travel policies

Supplementary information on the following subjects can be found in the publications section of the PSC's Web site at www.psc-cfp.gc.ca.

• Organizational information
• Information by priorities
• Information by sub-activities
• Management priority

This document is available on the Treasury Board of Canada Secretariat's Web site and on the publications section of the PSC's Web site.

• Previous Page
• Table of Contents
•