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Department of Finance Canada
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Supplementary Information
Details on Transfer Payments Programs (TPPs) for the Department of Finance
($ thousands)
Name of Transfer Payment Program: Compensation to Canadian agencies or entities established by an Act of Parliament for reduction of debts of debtor countries
Start Date: 1991–92
End Date: Ongoing
Description: Compensate Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries
Strategic Outcome: To create a fiscal, economic, social and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Timely and accurate payments to the EDC and the CWB to compensate for debt relief to debtor countries
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
Program Activity: International Financial Organizations |
||||
|
|
||||
|
Grants |
889,000 |
298,000 |
2,000 |
119,000 |
|
Contributions |
55,000 |
55,000 |
40,000 |
20,000 |
|
Total payments |
944,000 |
353,000 |
42,000 |
139,000 |
|
|
||||
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
Name of Transfer Payment Program: Statutory Funding—Payments to the International Development Association (IDA)
Start Date: 1960–61
End Date: Ongoing
Description: Encashment of demand notes to allow the IDA to disburse concessional financing for development projects and programs in the world's poorest countries
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results:
- Responsible administration of financial obligations to the IDA
- Results of IDA operations are detailed in the report on operations under the Breton Woods and Related Agreements Act, which is tabled annually in Parliament
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: International Financial Organizations |
||||
|
Other types of transfer payments |
239,741 |
318,269 |
318,269 |
318,269 |
|
|
||||
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
Name of Transfer Payment Program: Statutory Funding—Payment to the Exogenous Shocks Facility of the International Monetary Fund (IMF)1
Start Date: 2005–06
End Date: 2005–06
Description: Payment for Canada's commitment to the IMF's Exogenous Shocks Facility; funds will subsidize concessional financing to low-income countries faced with balance of payments needs arising from a sudden exogenous shock
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results:
- Responsible administration of financial obligations to the IMF
- Results of IMF operations are detailed in the report on operations under the Breton Woods and Related Agreements Act, which is tabled annually in Parliament
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: International Financial Organizations |
||||
|
Other types of transfer payments |
25,000 |
|||
|
|
||||
Planned Audits and Evaluations: The IMF will prepare and make available to member governments, including Canada, audited financial statements and audit reports and evaluations. IMF financial statements will also be publicly available.
Name of Transfer Payment Program: Grants and Debt Payments on Behalf of Poor Countries to International Organizations
Start Date: 2005–06
End Date: Ongoing
Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Responsible administration of financial obligations under the Multilateral Debt Relief Initiative
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: International Financial Organizations |
||||
|
Grants |
17,000 |
51,200 |
51,200 |
51,200 |
|
Total Program Activity |
1,230,041* |
725,869* |
411,469* |
508,469* |
|
|
||||
Planned Audits and Evaluations: An internal audit focussing on the subscriptions and payments related to international financial obligations is underway.
1. Pending confirmation of an annual surplus for 2005–06 of at least C$2 billion after all initiatives funded pursuant to Bill C-48 are taken into account.
* The total for the International Financial Organizations Program Activity includes $4.3 million in 2005–06 and $3.4 million in 2006–07 and the following two years for payments to the IMF's Poverty Reduction and Growth Facility—Exogenous Shocks Facility Trust.
Name of Transfer Payment Program: Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act)
Start Date: 1957
End Date: Ongoing
Description: Equalization payments are provided to provincial governments based on a formula to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional. In 2005–06, eight provinces received payments under this program.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to Canadian provinces to assist them in providing public services
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
10,900,000 |
11,537,428 |
11,676,000 |
12,085,000 |
|
|
||||
Planned Audits and Evaluations: An evaluation of this transfer program has not been completed. The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
Name of Transfer Payment Program: Territorial Financing (Part I.1, Federal-Provincial Fiscal Arrangement Act)
Start Date: 1985
End Date: Ongoing
Description: Transfer payments to territorial governments to support their budgetary revenues
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian territories to assist them in providing public services
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
2,000,000 |
2,070,000 |
2,142,000 |
2,217,000 |
|
|
||||
Planned Audits and Evaluations: The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
An internal audit was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Territorial Payments—Data Revisions
Start Date: 2004
End Date: 2006
Description: Transfer payments to territorial governments, other than those provided under Territorial Formula Financing (TFF), to support their budgetary revenues
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian territories to assist them in providing public services
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
29,500 |
46,400 |
||
|
|
||||
Planned audits and evaluations: The Expert Panel on Equalization and Territorial Formula Financing studied the program and provided a report to the Minister in June 2006. The report is available on the Panel's website at http://www.eqtff-pfft.ca/english/index.asp.
An internal audit on the TFF was prepared in May 2002 and is available on the Department of Finance Canada web site at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
Start Date: 2004
End Date: Ongoing
Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration) and the prohibitions against user fees and extra-billing.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to Canadian provinces and territories to assist them in providing universally accessible health care services
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
19,000,000 |
20,140,000 |
21,348,000 |
22,629,000 |
|
|
||||
Planned Audits and Evaluations: An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act)
Start Date: 2004
End Date: Ongoing
Description: The Canada Social Transfer (CST) provides equal per capita support through cash and tax transfers to provincial and territorial governments to assist them in financing post-secondary education, social assistance, and social services, including early childhood development and early learning and child care services. The CST gives provinces and territories the flexibility to allocate payments among supported areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Canadian provinces and territories to assist them in providing post-secondary education, social assistance, and social services, including early childhood development and early learning and childcare
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Province and Territories |
||||
|
Other types of transfer payments |
8,225,000 |
8,500,000 |
8,800,000 |
9,050,000 |
|
|
||||
Planned Audits and Evaluations: An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.
Name of Transfer Payment Program: Statutory Subsidies (Constitution Acts, 1867–1982 and other statutory authorities)
Start Date: 1867
End Date: Ongoing
Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support to provinces to assist them in providing public services
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
32,000 |
32,000 |
32,000 |
32,000 |
|
|
||||
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time.
Name of Transfer Payment Program: Youth Allowances Recovery (Federal-Provincial Revision Act,1964).
Start date: 1964
End date: Ongoing
Description: The Youth Allowances Recovery is a recovery from the province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance
|
|
||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
||||
|
Program Activity: Transfer Payments to Provinces and Territories |
||||
|
Other types of transfer payments |
-632,000 |
-699,000 |
-740,000 |
-774,000 |
|
|
||||
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time.
Name of Transfer Payment Program: Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act)
Start Date: 1977
End Date: Ongoing
Description: The Alternative Payments for Standing Programs are a recovery from the province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfer; in the 1960s Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement."
Strategic Outcome: To create a fiscal, economic, social, and global advantage for Canada by providing appropriate policies and sound advice with respect to economic, social, and financial conditions and to the government's overall agenda
Expected Results: Financial support for Quebec to assist that province in providing public services, universally accessible health care services, post-secondary education, and social assistance
|
|
|||||
|
($ thousands) |
Forecast |
Planned |
Planned |
Planned |
|
|
|
|||||
|
Program Activity: Transfer Payments to Provinces and Territories |
|||||
|
Other types of transfer payments |
-2,874,000 |
-2,995,000 |
-3,163,000 |
-3,299,000 |
|
|
Total Program Activity |
36,684,500* |
38,631,828 |
40,095,000 |
41,940,000 |
|
|
Planned Audits and Evaluations: An evaluation of this transfer program is not required at this time. |
|||||
|
Total TPPs |
37,914,541 |
39,357,697 |
40,506,469 |
42,448,469 |
|
|
|
|||||
* The total for the Transfer Payments to Provinces and Territories Program Activity includes $4 million in 2005–06 for Equalization-related payments to Nova Scotia.
Horizontal Initiatives
Horizontal Initiative: National Initiative to Combat Money Laundering (NICML)
Lead Department: Department of Finance Canada
Start Date: June 2000
End Date: 2009–10
Total Funding Allocated: $329,989 ($ thousands)
Description:
The NICML was formally established in 2000 as part of the government’s ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act (PCMLA), created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the PCMLA was amended to include measures to fight terrorist financing activities and renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Shared outcome(s):
To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences.
Governance structure(s):
The NICML is a horizontal initiative comprised of both funded and non-funded partners. The funded partners included the Department of Finance Canada, the Department of Justice Canada, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the Canada Border Services Agency (CBSA)—Immigration and Customs, the Canda Revenue Agency (CRA), and the Royal Canadian Mounted Police (RCMP); non-funded partners include Public Safety and Emergency Preparedness Canada (PSEPC) and Canadian Security Intelligence Service (CSIS). An interdepartmental ADM-level group and working group, consisting of all these partners and led by the Department of Finance Canada, has been established to direct and coordinate the government’s efforts to combat money laundering and terrorist financing activities.
|
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| Federal Partners Involved in each program | Names of Programs | Total Allocation[1] ($ thousands) | Planned Spending for 2005-2006 ($ thousands) | Expected Results for 2005-2006 |
|---|---|---|---|---|
|
|
||||
|
Finance |
NICML |
3,000 |
300 |
Finance is responsible for the development of anti-money laundering and anti-terrorist financing policy, including the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and its regulations. Finance coordinates the activities under the Initiative and has a key role in liaison and consultations with stakeholders. As well, Finance heads Canadian delegations to international anti-money laundering assemblies, e.g. the Financial Action Task Force (FATF). |
|
|
||||
|
Justice |
NICML |
11,400 |
1,200 |
Justice is responsible for undertaking prosecutions, specifically, in the case of the Initiative, those arising out of investigations to which FINTRAC disclosures have contributed. As well, Justice provides legal advice on policy issues and to police forces. In cases where law enforcement agencies desire additional information from FINTRAC, Justice takes the application for a production order to court to obtain approval. |
|
|
||||
|
FINTRAC |
NICML |
203,285 |
21,300 |
FINTRAC is an independent agency that receives, collects, analyses, assesses, and discloses financial transaction information to assist in the detection, prevention, and deterrence of money laundering and terrorist financing activities. FINTRAC operates at arm’s length from the police, federal departments and agencies, and international partners to which it can provide financial intelligence. FINTRAC is also involved in various outreach programs to raise awareness on money laundering and terrorist financing issues. |
|
|
||||
|
CCRA |
NICML |
29,284 |
0 |
|
|
|
||||
|
CIC |
NICML |
2,820 |
0 |
|
|
|
||||
|
CBSA[2] |
NICML |
22,500 |
4,500 |
CBSA Customs officers are responsible for the enforcement of the cross-border currency reporting program, which includes conducting searches, questioning individuals, and seizing non-reported or falsely reported currency and suspected proceeds of crime. In addition, FINTRAC discloses information to CBSA Immigration, which plays a key role in denying the use of Canadian territory to criminals and persons who pose security threats to Canada. |
|
|
||||
|
CRA[3] |
NICML |
11,000 |
2,200 |
FINTRAC discloses information to CRA when it suspects that the information would be relevant to an investigation or prosecution of money laundering or terrorist financing activities offences and if it determines that the information is relevant to a tax or duty evasion offence. The information received may serve as a lead for CRA to possibly initiate a new investigation or as additional information to an ongoing investigation. |
|
|
||||
|
RCMP |
NICML |
46,700 |
4,900 |
The RCMP, through its Money Laundering Units, is the major recipient of disclosures from FINTRAC. When intelligence is received, an investigative assessment is conducted to determine if a criminal investigation is warranted. The intelligence may add information on existing targets or provide new leads to existing investigations. The RCMP also provides voluntary information to FINTRAC to support its intelligence gathering process. |
|
Total |
329,989 |
34,400 |
||
|
|
||||
Results to be achieved by Non-federal Partners (if applicable): Not Applicable
Contact: Lynn Hemmings (613-992-0553)
Approved by: Diane Lafleur
Date approved: February 6, 2006
National Initiative to Combat Money Laundering, Allocation by Year ($ thousands):
|
|
|||||||||||
|
Department/ |
2000–01 |
2001–02 |
2002–03 |
2003–04 |
2004–05 |
2005–06 |
2006–07 |
2007–08 |
2008–09 |
2009–10 |
Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
|||||||||||
|
Finance |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
3,000 |
|
Justice |
600 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
1,200 |
11,400 |
|
FINTRAC |
17,985 |
22,500 |
20,000 |
15,000 |
21,300 |
21,300 |
21,300 |
21,300 |
21,300 |
21,300 |
203,285 |
|
CCRA |
5,284 |
6,000 |
6,000 |
6,000 |
6,000 |
0 |
0 |
0 |
0 |
0 |
29,284 |
|
CIC |
20 |
700 |
700 |
700 |
700 |
0 |
0 |
0 |
0 |
0 |
2,820 |
|
CBSA |
0 |
0 |
0 |
0 |
0 |
4,500 |
4,500 |
4,500 |
4,500 |
4,500 |
22,500 |
|
CRA |
0 |
0 |
0 |
0 |
0 |
2,200 |
2,200 |
2,200 |
2,200 |
2,200 |
11,000 |
|
RCMP |
2,600 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
4,900 |
46,700 |
|
|
|||||||||||
|
Total Allocation |
26,789 |
35,600 |
33,100 |
28,100 |
34,400 |
34,400 |
34,400 |
34,400 |
34,400 |
34,400 |
329,989 |
|
|
|||||||||||
Notes:
1. See table below for breakdown by year of the total allocation. [Return]
2. CBSA planned spending for 2006–07 includes funds originally allocated for Citizenship and Immigration Canada and the former Customs operations of Canada Customs and Revenue Agency. [Return]
3. The Customs operations of the former CCRA have been transferred to the CBSA. [Return]