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2010-11
Report on Plans and Priorities

Treasury Board of Canada Secretariat

Supplementary Information (Tables)

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Table of Contents

• Green Procurement
• Upcoming Internal Audits and Evaluations over the next three fiscal years
• Sources of Respendable and Non-respendable Revenue
• Future-oriented Statement of Operations
• Planned Spending by Vote under Program Activity 5

Green Procurement

Internal Audits

The following audits were included in the Risk-Based Audit Plan 2009–12 approved in June 2009. An annual review and update on planned audit engagements may result in modification to audit engagements conducted.

Name of Internal Audit	Internal Audit Type	Status	Expected Completion Date
Operational Effectiveness Testing of High-Risk Financial Reporting Controls	Assurance	Planned	December 2010
Audit of Management of Public Sector Pension Plans	Assurance	Planned	March 2011
Audit of Budget Office Systems Renewal	Assurance	Planned	March 2011
Audit of Security of Information and Information Technology	Assurance	Planned	March 2011
Audit of Business Continuity Planning and Emergency Preparedness	Assurance	Planned	March 2012
Audit of Management of Contracting	Assurance	Planned	March 2012
Audit of Risk Management Framework	Assurance	Planned	March 2012

Internal Evaluations

Listed below are all upcoming evaluations over the next three fiscal years. The following evaluations were included in the 2008–13 TBS 5-year Evaluation Plan. An annual review and update on planned evaluations may result in modification for evaluations to be conducted.

Name of Internal Evaluation	Program Type	Status	Expected Completion Date
Strategic Investment Framework	Initiative	In progress	May 2010
Policy on Internal Audit	Policy	Planned	October 2010
Joint Learning Program	Initiative	Planned	March 2011
Policy Monitoring	Ongoing	Planned	July 2011
International Public Sector Standards Accounting Board	Contributions	Planned	March 2011
Management of Pensions and Employee Benefits	Ongoing	Planned	March 2012
Compensation Management	Ongoing	Planned	March 2012
Accrual Budgeting and Appropriations	Initiative	Planned	March 2013
Results-Based Management and Evaluation	Ongoing	Planned	March 2013
Management of Government Security	Ongoing	Planned	March 2013
Management of Central Funds	Ongoing	Planned	March 2013

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ thousands)

Program Activity	Forecast Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12	Planned Revenue 2012-13
People Management
Revenue related to the administration of the Public Service Superannuation Act1	2,927	3,168	3,122	3,418
Expenditure Management
Revenue related to the administration of the Public Service Superannuation Act1	2,927	3,168	3,122	3,418
Government-wide Funds and Public  Service Employer Payments
Revenue related to Public Service Insurance2	344,200	370,000	519,900	554,100
Total Respendable Revenue	350,054	376,336	526,144	560,936

1. Respendable revenue is received to cover salaries and operating costs from Public Service Superannuation with respect to chargeable costs associated with administering the Public Service Superannuation Act.

2. Respendable revenue is received to cover health care insurance plans' costs from revolving funds and from departments and agencies that pay for employee benefit plans from a non‑statutory appropriation. This account also is used to record pensioners' share of Pensioners' Dental Services Plan contributions.

Non-Respendable Revenue
($ thousands)

Program Activity	Forecast Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12	Planned Revenue 2012-13
People Management
Revenue related to the administration of the Public Service Superannuation Act1	636	755	778	795
Expenditure Management
Revenue related to the administration of the Public Service Superannuation Act1	636	755	778	795
Government-wide Funds and Public  Service Employer Payments
Revenue from parking fees2	11,742	11,882	12,024	12,168
Total Non-respendable Revenue	13,014	13,392	13,580	13,758
Total Respendable and Non-respendable Revenue	363,068	389,728	539,724	574,694

1. The non-respendable revenue represents the portion received from Public Service Superannuation with respect to chargeable costs associated with administering the Public Service Superannuation Act and covers the costs of employee benefit plans, health, and accommodation.

2. Parking fees collected from public servants in government-owned or leased facilities. This revenue is deposited directly to the Consolidated Revenue Fund and cannot be used to offset operating expenditures.

Future-oriented Financial Statements (Unaudited)

Table of Contents

Statement of Management Responsibility

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2011 rests with the management of the Treasury Board of Canada Secretariat (Secretariat). The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and will be used in the Secretariat's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the future-oriented financial information and for the process of developing forecasts and future projections that are based on information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in the Secretariat mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such estimations, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends. The actual results achieved will vary from the forecast information presented, and this variation could be material.

The readers should be advised that the Secretariat is preparing these statements as part of a pilot project involving ten departments. This is the second year of a two year project to develop the methodology to prepare Future-oriented Departmental Financial Statements.

 

Michelle d'Auray Secretary of the Treasury Board Ottawa, Canada March 12, 2010

Christine Walker Assistant Secretary and CFO               Ottawa, Canada March 12, 2010

 

Treasury Board of Canada Secretariat
Future-oriented Statement of Operations (Unaudited)
For the year ended March 31

	($ thousands)
	Forecast 2010	Forecast 2011
Expenses (Note 6)
Government-wide Funds and Public Service Employer Payments	2,171,825	2,231,393
Management Frameworks	72,551	65,534
People Management	68,716	62,071
Expenditure Management	36,435	32,912
Financial Management	33,559	30,514
Internal Services	108,347	97,869
Total Expenses	2,491,433	2,520,293
Revenues (Note 7)
Government-wide Funds and Public Service Employer Payments	11,762	11,909
Management Frameworks	-	-
People Management	7,125	7,845
Expenditure Management	-	-
Financial Management	-	-
Internal Services	-	-
Total Revenues	18,887	19,754
Net Cost of Operations	2,472,546	2,500,539

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

 

Treasury Board of Canada Secretariat
Future-oriented Statement of Financial Position (Unaudited)
At March 31

	($ thousands)
	Forecast 2010	Forecast 2011
ASSETS
Financial assets
Accounts Receivable and Advances	223,939	235,047
Total financial assets	223,939	235,047
Non-financial assets
Tangible capital assets (Note 8)	13,695	11,246
Total non-financial assets	13,695	11,246
TOTAL ASSETS	237,634	246,293
LIABILITIES
Accounts payables and accrued liabilities	517,314	534,561
Vacation pay and compensatory leave	7,637	7,401
Employee severance benefits (Note 9)	33,137	32,084
	558,088	574,046
EQUITY OF CANADA	(320,454)	(327,753)
TOTAL LIALIBITES AND EQUITY	237,634	246,293

Contingent liabilities (Note 10)

Contractual obligations (Note 11)

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

 

Treasury Board of Canada Secretariat
Future-oriented Statement of Cash Flow (Unaudited)
For the year ended March 31

	($ thousands)
	Forecast 2010	Forecast 2011
Operating activities
Net cost of operations	2,472,546	2,500,539
Non-cash items:
Amortization of capital assets	(3,343)	(3,104)
Service provided without charge by other government departments	(19,703)	(19,358)
Variation in Statement of Financial Position:
Decrease (increase) in accounts receivable and advances	(6,110)	11,108
Increase in accounts payable and accrued liabilities	(78,100)	(17,247)
Increase (Decrease) in vacation pay and compensatory leave	(1,090)	236
Increase (Decrease) in employee severance benefits	(4,248)	1,053
Cash used by operating activities	2,359,952	2,473,227
Capital investing activities
Acquisition of tangible capital assets	248	655
Cash used by capital investment activities	248	655
Financing activities
Net cash provided by the Government of Canada	(2,360,200)	(2,473,882)

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

 

1. Authority and Objectives

Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. It is headed by a Secretary, who reports to the President of the Treasury Board.

The mission of the Secretariat is to ensure that the rigorous stewardship of public resources achieves results for Canadians.

The core business of the Secretariat is currently organized into the following key areas of program activity:

a) Government-wide funds and public service employer payments

The Government-wide Funds and Public Service Employer Payments program activity accounts for funds that are held centrally to supplement other appropriations.  From these funds, payments and receipts are made on behalf of other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Secretariat as the employer of the federal public service. Information on planned spending is provided in Section III, as online supplementary information.

b) Management Frameworks

The Management Frameworks program activity establishes guiding principles and expectations for public sector management.  It includes setting government-wide policy directions in targeted areas, such as governance, regulatory management, the Management Accountability Framework (MAF), service, information management and information technology.  Working with all federal organizations, the Secretariat provides leadership, challenge, and community enablement in policy development, compliance, performance reporting, and functional community development.  This work includes new and emerging issues and priorities, and promoting a cultural shift in the approach to risk and innovation.  In turn, this work informs the policies in the People Management, Expenditure Management, and Financial Management program activities.   

c) People Management

The People Management program activity supports efforts across the federal public service to achieve strong leadership and a well managed workforce and workplace.  Direction-setting activities include the following:

• Developing and implementing people management- related frameworks and policies;
• Setting and monitoring departmental people management performance expectations;
• Conducting research and analysis regarding the state of people management; and
• Supporting the effective management of the leadership cadre.

The program activity also provides public service-wide leadership on managing compensation, which it shares with the Expenditure Management program activity.  It includes collective bargaining and associated labour relations as well as establishing and maintaining the public service pension and benefits regime. 

d) Expenditure Management

The Expenditure Management program activity helps ensure alignment of resources to achieve government priorities in a way that maximizes value for money and provides a whole-of-government perspective on matters related to direct program spending.  Working with all federal organizations that are subject to budget appropriation, the Secretariat undertakes the review, analysis, and challenge of plans and proposals involving departmental spending, expenditure forecasting and strategies, compensation management, and results-based management.  This program activity includes part of the Expenditure Management System, the framework for the development and implementation of the government's spending plans and priorities within the limits established by the Budget.

e) Financial Management

The Financial Management program activity promotes good financial management practices across government to ensure that financial activities are carried out effectively and efficiently.  Working with all federal organizations, the Secretariat:

• Develops financial management, accounting, transfer payment and internal audit policies, directives and standards;
• Assists departments by providing leadership, policy advice and guidance;
• Sets performance expectations and monitors performance;
• Builds capacity within functional communities;
• Plans horizontal audits and conducts audits of small departments;
• Provides financial oversight and reporting; and
• Advises departments on financial authority issues associated with the Financial Administration Act (FAA) and Appropriation Acts.

f) Internal Services

The Internal Services program activity is advanced through three program sub-activities (PSA) that support the Treasury Board and the internal management of the Secretariat. PSAs and key functions are the following:

• Governance and Management Support, including management, oversight, communications, and legal services;
• Resource Management, which includes human resources management, financial management, information management, information technology, travel, and other administrative services; and
• Asset Management Services, including real property, materiel management, and acquisitions.

2. Underlying Assumptions

These future-oriented statements have been prepared:

• on the basis of government policies, government priorities, and  external environment at the time the future-oriented financial information was finalized;
• according to the requirements of Treasury Board Accounting Policies which are based on Canadian generally accepted accounting principles for the public sector;
• on the basis that the resources provided will enable Treasury Board of Canada Secretariat to deliver the expected results specified in the Report on Plans and Priorities, and in consideration of projects pending for approval; and
• on the basis of historical costs.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for 2009-10 and 2010-11, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the Secretariat will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the Secretariat’s Performance Report.

On February 6^th, 2009, Prime Minister Harper announced changes to streamline and improve the management of human resources in the Public Service of Canada. As a result, the Public Service Human Resources Management Agency of Canada (PSHRMAC) was no longer operating as a separate entity, but housed within the Treasury Board Secretariat under a new Office of the Chief Human Resources Officer. The financial impact of this decision was not reflected in the 2009-2010 Future-oriented Statement of Operations. Therefore, the forecasts for these statements have been restated to reflect this financial impact.

Another structural change that took place in early 2009 is the transfer from the Department of Finance to the Secretariat of the control and the supervision of portions of the federal public administration related to corporate services in the Department of Finance. The financial impact has been reflected in these Future-oriented Financial Statements. 

4. Summary of Significant Accounting Policies

The future-oriented financial information has 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:

a) Parliamentary appropriations

The Secretariat is financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles because appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Future-oriented Statement of Operations and in the Future-oriented Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament.  Note 5 provides a high-level reconciliation between the bases of reporting.

b) Net Cash Provided by Government

The Secretariat operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada.  All cash received by the Secretariat is deposited to the CRF and all cash disbursements made by the Secretariat are paid from the CRF.  The net cash provided by Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments of the federal government.

c) Forecasted revenues 

Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues took place.

d) Forecasted expenses

Expenses are recorded on the accrual basis:

• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment. 
• Services provided without charge by other government departments for accommodation and legal services are recorded as operating expenses at their estimated cost.

e) Government-wide employee benefits

Eligible public service employees participate in the Public Service Pension Plan sponsored by the Government of Canada. Contributions to the Plan for all departments and agencies, including additional contributions in respect of any actuarial deficiencies, are funded by the Secretariat as centrally managed funds, and they are expensed in the year incurred. The Secretariat recovers a portion of the pension contributions from other departments and agencies.

The Government of Canada also sponsors a variety of other benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. These benefits are recognized as expenses when they become due. A portion of these benefits is also recovered from other departments and agencies.

For the pension benefits and other future employee benefits covered by these plans, actuarially determined liabilities and related disclosure are presented in the financial statements of the Government of Canada, the ultimate sponsor of these benefits. As administrator of the centrally managed funds, the Secretariat expenses these benefits or contributions as they become due and records no accruals for future benefits. This treatment is consistent with the funding provided to the department through parliamentary appropriations.

f) Departmental employee future benefits

Pension benefits:Eligible employees of the Secretariat participate in the Public Service Pension Plan. The Secretariat’s share of contributions pertaining to the current service cost of its employees is allocated to the program activities which incur salary expenses.

Severance benefits: Employees are entitled to severance benefits, as provided for 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 of the Secretariat is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.

g) Accounts receivable and advances

Accounts receivable and advances are stated at amounts expected to be ultimately realized. 

h) Contingent liabilities

Contingent liabilities are potential liabilities which 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. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. 

i) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Secretariat does not capitalize intangibles, works of art, and historical treasures that have cultural, aesthetic, or historical value.

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
Machinery and equipment	3 to 10 years
Motor vehicles	3 years
Leasehold improvements	Term of lease
Assets under construction	Once in service, in accordance with asset class

j) Measurement uncertainty

The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the reported amounts of all the assets, liabilities, revenues and expenses reported in the future-oriented financial statements. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of the Future-oriented Financial Statements, management believes the estimates and assumptions to be reasonable.  Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. Parliamentary Appropriations

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

	($ thousands)
	Forecast 2010	Forecast 2011
Net cost of operations	2,472,546	2,500,539
Adjustment for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge from other government department	(19,703)	(19,358)
Revenue not available for spending	13,034	13,419
(Increase) in vacation pay and compensatory leave	(1,090)	236
(Increase) in employee severance benefits	(4,248)	1,053
Amortization of tangible capitals assets	(3,343)	(3,104)
	(15,350)	(7,754)
Adjustment for items not affecting net cost of operations but affecting appropriations:
Acquisition of tangible assets	248	655
Appropriations used	2,457,444	2,493,440

b) Appropriations provided and used:

	($ thousands)
	Forecast 2010	Forecast 2011
Voted Authorities:
Vote 1 - Program expenditures	258,849	236,591
Vote 5 - Government contingencies	750,000	750,000
Vote 10 - Government-wide initiatives	6,636	6,215
Vote 15 - Compensation adjustments	735,441	-
Vote 20 - Public service insurance	2,164,302	2,223,794
Vote 25 - Operating budget carry forward	1,200,000	1,200,000
Vote 30 - Paylist requirements	500,000	500,000
Vote 35 - Budget Implementation Initiatives	3,000,000	-
	8,615,228	4,916,600
Statutory authorities:
President of Treasury Board - salary & motor car allowance	78	78
Contribution to employee benefit plans	29,757	29,592
Payments under the Public Service Pension Adjustment Act	20	20
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act	200	200
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts & the Employment Insurance Act	9,500	9,500
	39,555	39,390
Pending Approval:
Vote 1 - Program expenditures	591	-
Vote 1 – Respendable Revenue	(5,853)	(6,335)
	(5,262)	(6,335)
Transferred or lapsed authorities:
Vote 5 - Government contingencies	(750,000)	(750,000)
Vote 10 - Government-wide initiatives	(6,636)	(6,215)
Vote 15 - Compensation adjustments	(735,441)	-
Vote 25 - Operating budget carry forward	(1,200,000)	(1,200,000)
Vote 30 - Paylist requirements	(500,000)	(500,000)
Vote 35 - Budget Implementation Initiatives	(3,000,000)	-
	(6,192,077)	(2,456,215)
Appropriations used	2,457,444	2,493,440

6. Forecasted Expenses

a) The following table presents details of expenses by category and by program activity:

($ thousand)

	Forecast 2010 Total	GF & PSEP	MF	PM	EM	FM	IS	Forecast 2010 Total
Transfer payment	200	-	-	-	-	200	-	200
Operating Expenses:
Government-wide funds and publics service employer payments (Note 6b)	2,171,825	2,231,393	-	-	-	-	-	2,231,393
Salary & employee benefits	214,959	-	45,956	43,527	23,080	21,257	68,631	202,451
Professional & Special Services	63,541	-	11,603	10,990	5,827	5,367	17,328	51,115
Accommodation	15,848	-	3,458	3,275	1,737	1,600	5,164	15,234
Transport & telecommunications	7,477	-	1,366	1,294	686	632	2,039	6,017
Machinery, equipment, parts & tools	4,075	-	730	692	367	338	1,091	3,218
Repair & maintenance	877	-	92	88	46	43	138	407
Utilities, materiel & supplies	1,801	-	411	390	207	190	614	1,812
Information	1,642	-	198	187	99	92	296	872
Rentals	1,255	-	262	248	131	121	390	1,152
Amortization	3,343	-	705	667	354	326	1,052	3,104
Other subsidies & payment	4,590	-	753	713	378	348	1,126	3,318
Total Expenses	2,491,433	2,231,393	65,534	62,071	32,912	30,514	97,869	2,520,293

Legend:

b) Government-wide funds and public service employer payments

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat funds the employer’s contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, including additional contributions in respect of actuarial deficiencies. 

The Secretariat also funds payments to or in respect of:

• the employer’s share of contributions to the Public Service Death Benefit Account;
• the employer’s share of Canada/Quebec Pension Plan contributions and Employment Insurance premiums;
• the employer’s share of health, disability, and life insurance premiums and related Quebec sales tax;
• claims and related costs under the Public Service Dental Care Plan and the Pensioners’ Dental Services Plan;
• provincial payroll taxes;
• pension, benefit, and insurance plans for employees engaged locally outside Canada by Canadian missions abroad; and
• returns to certain employees of their share of the Employment Insurance premium reduction.

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Quebec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds pro-rata, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies and all revolving funds, based on a percentage of salaries and wages incurred. 

A breakdown by major category is as follows:

	($ thousands)
	Forecast 2010	Forecast 2011
Expenses:
Public Service Pension Plan & Retirement Compensation Arrangement contributions (Statutory)	2,431,874	2,545,306
Public Service Pension Plan & Retirement Compensation in respect of actuarial deficits (Statutory)	9,500	9,500
Public Service Death Benefit Account contributions (Statutory)	10,834	11,253
Canada/Quebec Pension plan contribution (Statutory)	633,297	678,792
Employment Insurance premiums (Statutory)	254,108	259,943
Employment Insurance premiums reduction (Vote 20)	1,300	1,450
Quebec Parental Insurance Plan premiums (Vote 20)	28,000	35,940
Public Service Health Care Plan premiums (Vote 20)	962,733	974,904
Public Service Dental Care Plan claims (Vote 20)	253,928	276,728
Pensioners' Dental Services Plan claims (Vote 20)	116,238	138,936
Provincial Health Insurance Plan premiums (Vote 20)	29,323	31,926
Provincial payroll taxes (Vote 20)	505,806	532,124
Group disability and life insurance premiums (Vote 20)	512,859	526,328
Pension & other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad (Vote 20)	48,360	67,265
Pension & similar payments to former government employees (Vote 20)	520	540
Miscellaneous Special Payments (Vote 20)	200	200
Operating expenses (Vote 20)	5,258	5,552
	5,804,138	6,096,687
Recoveries:
Employer's contributions to government employee benefit plans recovered from government departments and agencies (Statutory)	3,330,113	3,495,295
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)	132,000	138,290
Employee's contributions to Public Service Health Care Plan recovered from government departments and agencies (Vote 20)	45,000	70,688
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)	125,200	161,021
	3,632,313	3,865,294
Net Expenses	2,171,825	2,231,393

7. Forecasted Revenues

The following table presents details of revenues by category and by activities:

($ thousand)

	Forecast 2010 Total	GF & PSEP	MF	PM	EM	FM	IS	Forecast 2010 Total
Parking Fees	11,742	11,882	-	-	-	-	-	11,882
Recovery of pension admin. Costs	7,125	-	-	7,845	-	-	-	7,845
Other revenues	20	27	-	-	-	-	-	27
Total	18,887	11,909	-	7,845	-	-	-	19,754

Legend:

8. Tangible Capital Assets

The following table presents the details of Tangible Capital Assets:

($ thousands)

Capital asset class	Cost				Accumulated amortization				Forecast Net Book Value
	Opening balance	Acqui- sitions	Disposals and write-offs	Closing balance	Opening balance	Amorti- zation	Disposals and write-offs	Closing balance	2011	2010
Machinery and equipment	24,137	655	-	24,792	10,482	3,082	-	13,564	11,228	13,655
Motor vehicles	97	-	-	97	57	22	-	79	18	40
Leasehold improvements	1,952	-	-	1,952	1,952	-	-	1,952	-	-
Total	26,186	655	-	26,841	12,491	3,104	-	15,595	11,246	13,695

9. Employee Benefits

a) Pension benefits

Eligible public service 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 per cent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Quebec Pension Plans benefits and they are indexed to inflation.

The Secretariat funds the employer contributions to the Public Service Pension Plan, including additional contributions in respect of actuarial deficiencies, on behalf of all government departments and agencies, and recovers a portion of those costs.

During 2010, the Secretariat estimated $21,484 thousand ($20,768 thousand in 2011) in respect of its own employees.

b) Severance benefits

The Secretariat 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. The liability for severance for 2009-2010 is estimated to $33,137 thousands.   The estimated amount for 2010-2011 is $32,084 thousands.  The liability is calculated as a percentage of estimated salary expenses which are forecasted to decrease from 2009-10 to 2010-11.

Information about the severance benefits, measured as at March 31, is as follows: 

	($ thousands)
	Forecast 2010	Forecast 2011
Accrued benefit obligation, beginning of year	28,889	33,137
Accrued expense for the year	4,248	(1,053)
Accrued benefit obligation, end of year	33,137	32,084

10. Contingent liabilities

Claims and Litigations

Claims have been made against the Secretariat in the normal course of operations. Legal proceedings for claims carry a potential liability of approximately $62 billion. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. As the likelihood of these future events occurring is undeterminable and the estimate of losses is not estimable, no accrual for these contingent liabilities has been made in the financial statements.

The most significant of these legal actions is described as follows:

In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the Public Service (PSSA), RCMP (RCMPSA), and Canadian Forces (CFSA) superannuation plans. The new Act authorized the President of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the plaintiffs' actions were dismissed. In February 2008, all 3 plaintiffs appealed the decisions. Hearing of appeals is scheduled for 19, 20 and 21 April 2010.

11. Contractual obligations

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

	($ thousands)
	2010	2011	2012	Total
Public Service Health/Dental Plans	37,497	45,741	48,829	132,067
Mail and messenger services	270	1,616	1,653	3,539
Other professional services	9,769	992	436	11,197
Management consulting	2,051	989	-	3,040
Computer services	1,546	165	-	1,711
Accounting and Audit Services	1,038	-	-	1,038
Total	52,171	49,503	50,918	152,592

12. Related-Party Transactions

Services provided without charge

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

During the year, the Secretariat receives without charge services from other departments as shown in the following table:

	($ thousands)
	Forecast 2010	Forecast 2011
Accommodation	15,848	15,234
Legal services	3,855	4,124
Total	19,703	19,358

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 departments without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada (PWGSC), are not included as an expense in the Statement of Operations. The forecast is the amount provided by the Department of Justice and PWGSC.

13. Comparative Information

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

Planned Spending by Vote under Program Activity 5: Government-wide Funds and Public Service Employer Payments

Planned spending in this program activity relates mainly to the following votes:

Vote 20—Public Service Insurance

This vote, which supports the Treasury Board's role as employer, is used for the following:

• Public service pension, benefits, and insurance, including payment of the employer's share of health, income maintenance, and life insurance premiums;
• Payments to or in respect of provincial health insurance plans;
• Payment of provincial payroll taxes and Quebec sales tax on insurance premiums;
• Costs associated with the pension, benefit, and insurance plans for employees engaged locally outside Canada; and
• The return to certain employees of their share of the employment insurance premium reduction.

Other contingency funds are available to other government departments, if required, and expenditures will be identified under their program activities. The following votes are therefore excluded from the Secretariat's planned spending:

Vote 5—Government Contingencies

This vote provides the government with the authority and flexibility to meet unforeseen or urgent expenditures until parliamentary approval can be obtained. Most of the items in this vote are considered temporary advances to cover items that will be included in subsequent Supplementary Estimates for other departments and agencies and reimbursed when the associated appropriation act is passed.

Vote 10—Government-wide Initiatives

This vote supplements other departments and agencies' appropriations that support the implementation of strategic management initiatives across the public service. Historically, this vote has been used to support such initiatives as Government On-Line, comptrollership innovation and modernization, the Financial Information Strategy, employment equity, and program evaluation and internal audit.

Vote 25—Operating Budget Carry Forward

This vote allows for routine operating budget carry-forward (OBCF) amounts, as established under the OBCF policy, to be transferred directly to departments and agencies, in a timely manner, once eligible amounts have been confirmed by the Secretariat and approved by Treasury Board ministers. The $1.2 billion in this vote, which represents no additional cost to the government, corresponds to the approximate amount of potential requirements that would otherwise have been presented in multiple Supplementary Estimates by departments and agencies.

 Vote 30—Paylist Requirements

This vote covers departments and agencies' paylist shortfalls related to parental benefits, severance, and other allowances. To avoid discrimination in hiring practices, pay-list costs related to these expenditures have been provided for centrally since the introduction of the Operating Budget regime in 1993. This vote provides relief from cash management challenges departments and agencies face for these legal obligations.