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ARCHIVED - Office of the Superintendent of Financial Institutions Canada - Supplementary Tables


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Sources of Respendable and Non-Respendable Revenue

This table identifies revenues by program activity received from sources both internal and external to the government. For 2009-2010, OSFI’s total revenues were $111.1 million, including non-respendable revenue of $39 thousand for the collection of Late and Erroneous Filing Penalties. The respendable revenues are largely comprised of asset- or premium-based industry assessments, surcharge assessments to staged institutions, and user fees for specific services related to Regulatory Approvals.

Respendable Revenues

The table below illustrates sources of Respendable Revenue on a modified cash basis; however, OSFI recovers its costs through assessments and user fees billed on the accrual basis of accounting.  The differences between the accounting methodologies give rise to fluctuations in revenues from year to year.

Commencing in the 2009-2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from other program activities; they are no longer distributed among the remaining program activities.  Comparative figures have been restated to conform to the presentation adopted in 2009-2010. 

As OSFI must fully recover its costs for all programs other than the Office of the Chief Actuary, which is partially funded by a parliamentary appropriation, respendable revenue in the Main Estimates were allocated to each program, including Internal Services, to match revenues to costs and plan spending at zero on a modified cash basis.  Actual revenues billed and received, however, were recorded in a Responsibility Centre within the Internal Services program, resulting in variances between the Main Estimates and Actual revenues in both the Regulation and Supervision of Federally Regulated Financial Institutions and Internal Services programs.  During 2010-2011, OSFI will be making amendments to ensure consistency between its planning and reporting processes.

Respendable Revenue
($ millions)
Program
Activity
Actual
2007-2008
Actual
2008-2009
2009-2010
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
(1) Regulation and Supervision of Federally Regulated Financial Institutions
Base Assessments $0.0 $0.0 $46.4 $46.4 $46.4 $0.0
User Fees and Charges $1.3 $0.9 $2.0 $2.0 $2.0 $0.6
Cost-Recovered Services $2.1 $0.8 $0.2 $0.2 $0.2 $0.5
Subtotal $3.3 $1.7 $48.6 $48.6 $48.6 $1.1
(2) Regulation and Supervision of Federally Regulated Private Pension Plans
Pension Plan Fees $7.2 $8.2 $4.8 $4.8 $4.8 $8.5
(3) International Assistance
Cost-Recovered Services $1.6 $1.6 $1.7 $1.7 $1.7 $1.7
(4) Office of the Chief Actuary
User Fees and Charges $0.0 $0.1 $0.1 $0.1 $0.1 $0.0
Cost-Recovered Services $4.5 $4.7 $3.3 $3.3 $3.3 $5.3
Subtotal $4.5 $4.8 $3.4 $3.4 $3.4 $5.3
(5) Internal Services
Base Assessments $70.1 $81.7 $35.8 $35.8 $35.8 $90.5
Pension Plan Fees $0.0 $0.0 $2.1 $2.1 $2.1 $0.0
User Fees and Charges $1.9 $1.6 $0.0 $0.0 $0.0 $2.9
Cost-Recovered Services $1.4 $0.5 $2.8 $2.8 $2.8 $1.1
Subtotal $73.4 $83.8 $40.7 $40.7 $40.7 $94.5
Total Respendable Revenue $90.0 $100.1 $99.2 $99.2 $99.2 $111.1

The increase in respendable revenues in 2009-2010 from the previous year is explained in the “Performance Summary” and “Expenditure Profile” sections of OSFI’s 2009-2010 Departmental Performance Report.  In addition, on the modified cash basis of accounting, OSFI had a greater inflow of funds than outflows than planned during 2009-2010 in each program.  This is largely the result of collections during the year of outstanding accounts receivable pertaining to 2008-2009, and of base assessments and pension fees for the current year, which explains the variances between 2009-2010 actuals and total authorities.Revenue by Type

Total 2009-2010 respendable revenues were $111.1 million, an increase of $11.0 million (11.0%) over the previous year’s total of $100.1 million. Base Assessments of $90.5 million accounted for 81.5% of total revenue and represented an increase of $8.8 million over the previous year. This increase is attributed to higher costs in the Regulation and Supervision of Federally Regulated Financial Institutions program activity, largely due to an increase in FTEs, normal economic and merit increases in employee compensation and the 15-basis-point increase in the Employee Benefit Plan rate as prescribed by Treasury Board Secretariat.

Respendable Revenue 2005-06 to 2009-10 Cost recovered services revenue was $8.6 million, up $1.0 million (13.2%) from the previous year, largely due to cost increases for the Office of the Chief Actuary related to hosting of the 2009-2010 International Social Security Association conference, an increase of 2.6 FTEs and planned increases in employee compensation.  User fees and charges were $3.5 million, up $0.9 million (34.6%) from the previous year, while pension plan fees increased by $0.3 million (3.7%) to $8.5 million driven mainly by an increase in pension plan membership and higher cash receipts from pension plan fee billings resulting from increased efforts on outstanding accounts receivable collection.

Base assessments increased from 78.0% of total revenue in 2005-2006 to 81.5% in 2009-2010, while pension plan fees increased from 4.4% to 7.7%. Cost recovered services decreased over the same period from 10.2% to 7.7% largely due to the expiry, on October 31, 2007, of the Memorandum of Understanding with the large banks for the implementation of the internal ratings-based approach (IRB) of the New Capital Adequacy Framework (Basel II). User pay and charges also decreased over this period from 7.3% to 3.1% as a result of the rationalization of the user-pay regime that came into effect on April 28, 2006.

Non-Respendable Revenues

OSFI’s non-respendable revenues are entirely related to late and erroneous filing penalties. Effective 2002-2003, OSFI began collecting late and erroneous filing penalties from financial institutions that submit late and/or erroneous financial and corporate returns. On August 31, 2005 the Administrative Monetary Penalties (OSFI) Regulations came into force. These Regulations implement an administrative monetary penalties regime pursuant to which the Superintendent can impose penalties in respect of specific violations, as designated in the schedule to the Regulations. These Regulations incorporate the late and erroneous filing penalty regime and replace the Filing Penalties (OSFI) Regulations. These penalties are billed quarterly, collected and remitted to the Consolidated Revenue Fund. By regulation, OSFI cannot use these funds to reduce the amount that it assesses the industry in respect of its operating costs.

Non-Respendable Revenue
($ millions)
Program
Activity
Actual
2007-2008
Actual
2008-2009
2009-2010
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
1) Regulation and Supervision of Federally Regulated Financial Institutions
Filing Penalties $0.4 $0.5 $0.5 $0.5 $0.5 $0.0
Total Non-respendable Revenue $0.4 $0.5 $0.5 $0.5 $0.5 $0.0

The 2009-2010 Filing Penalty revenues of $0.0 million included a reversal of $0.1 million related to filing penalties levied in 2008-2009 that were reversed in 2009-2010 as a result of appeal processes. Filing Penalty revenues were lower than planned in 2009-2010 due to more timely and accurate filing of financial and corporate returns by financial institutions.