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Supplementary Information (Tables)
The following outlines the Secretariat's targets and implementation strategies to meet federal targets identified in the Federal Sustainable Development Strategy (FSDS) under Goal 8: Greening Government Operations (GGO). The targets that are relevant to the Secretariat's operations relate to the areas of electronic waste (8.6), printing units (8.7), paper consumption (8.8), green meetings (8.9), and green procurement (8.10 and 8.11). For more information on the GGO targets, visit the Environment Canada website.
Performance Measure | RPP | DPR | |
---|---|---|---|
Target Status | |||
Existence of implementation plan for the disposal of all departmentally generated EEE. (Optional in RPP 2011–12) | N/A | ||
Total number of departmental locations with EEE implementation plan fully implemented, expressed as a percentage of all locations, by the end of the given fiscal year (FY). | FY 2011–12 | ||
FY 2012–13 | |||
FY 2013–14 |
Strategies/Comments
Performance Measure | RPP | DPR | |
---|---|---|---|
Target Status | |||
Ratio of departmental office employees to printing units in fiscal year 2010–11, where building occupancy levels, security considerations and space configuration allow. (Optional) | N/A | ||
Ratio of departmental office employees to printing units at the end of the given fiscal year, where building occupancy levels, security considerations and space configuration allow. | FY 2011–12 | N/A* | |
FY 2012–13 | 8:1 | ||
FY 2013–14 |
Strategies/Comments
Performance Measure | RPP | DPR | |
---|---|---|---|
Target Status | |||
Number of sheets of internal office paper purchased or consumed per office employee in the baseline year selected, as per departmental scope. (Optional in RPP 2011–12) | N/A | ||
Cumulative reduction (or increase) in paper consumption, expressed as a percentage, relative to baseline year selected. (Optional in RPP 2011–12) | FY 2011–12 | ||
FY 2012–13 | |||
FY 2013–14 |
Strategies/Comments
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
Presence of a green meeting guide. (Optional in RPP 2011–12) | N/A |
Strategies/Comments
8.10 As of April 1, 2011, each department will establish at least three SMART (specific, measurable, achievable, realistic, time-bound) green procurement targets to reduce environmental impacts.
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By March 31, 2012, the Secretariat has surveyed its existing equipment, procures only compliant equipment and has developed an implementation plan. | N/A | |
By April 1, 2014, the Secretariat has implemented its plan. |
Strategies/Comments
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By March 31, 2012, Secretariat procedures are documented and a monitoring strategy is developed. | N/A | |
By March 31, 2013, the monitoring strategy has been implemented. | ||
By March 31, 2014, all purchases comply with the target. |
Strategies/Comments
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By April 1, 2011, all new vehicles are hybrid or Ultra Low Emission Vehicles. | N/A |
Strategies/Comments
The Secretariat operates a small fleet of executive vehicles, which are purchased centrally. Effective April 1, 2011, any vehicles purchased to support these activities will meet the stated target.
8.11 As of April 1, 2011, each department will establish SMART targets for training, employee performance evaluations, and management processes and controls, as they pertain to procurement decision making.
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By March 31, 2013, the Secretariat has developed a procurement training program for fund centre managers that includes green procurement training. | N/A | |
By March 31, 2014, all fund centre managers have completed the green procurement training. | N/A |
Strategies/Comments
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By December 31, 2011, all procurement strategies developed in support of Secretariat requirements include green procurement considerations. | N/A |
Strategies/Comments
The Secretariat is currently documenting its procurement procedures and will incorporate green procurement considerations in the development of the procurement strategies for contracted goods and services. By December 31, 2011, the Secretariat will ensure that green considerations are part of the integrated procurement planning process.
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
By December 31, 2011, the Secretariat has procurement processes that clearly incorporate green procurement considerations. | N/A |
Strategies/Comments
Performance Measure | RPP | DPR |
---|---|---|
Target Status | ||
Number of performance evaluations of identified positions that have environmental considerations relative to the total of identified positions. | N/A | |
Progress against measure in the given fiscal year. | N/A |
Strategies/Comments
The following audits were included in the Secretariat's Risk-Based Audit Plan for
2010–13, which was approved in May 2010. Periodic updates to the Risk-Based Audit Plan may result in modifications to planned audit engagements.
Name of Internal Audit | Internal Audit Type | Status | Expected Completion Date |
---|---|---|---|
Audit of Governance of the Public Service Pension Plan | Assurance | Planning | June 2011 |
Audit of Business Continuity and Emergency Preparedness | Assurance | Planning | September 2011 |
Audit of Contracting | Assurance | Planned | March 2012 |
Audit of HR Planning, Recruitment and Staffing | Assurance | Planned | March 2012 |
Audit of IM/IT Governance | Assurance | Planned | March 2012 |
Audit of Travel Expense Policy Compliance | Assurance | Planned | March 2012 |
Audit of IT Security | Assurance | Planned | March 2013 |
Audit of Disaster Recovery | Assurance | Planned | March 2013 |
Audit of Management of the Public Service Health Care Plan | Assurance | Planned | March 2013 |
Audit of Integrated Risk Management | Assurance | Planned | March 2013 |
The following evaluations are included in the Secretariat's 2009–10 multi-year evaluation plan, which is currently under review.
Name of Evaluation | Program Activity | Status | Expected Completion Date |
---|---|---|---|
Policy Monitoring Framework | Management Frameworks | Under review | February 2012 |
Compensation Management | People Management – Comprehensive Management of Compensation | In progress | March 2012 |
Cabinet Directive on Streamlining Regulation (summative evaluation) | Management Frameworks – Regulatory Management | Planned | March 2013 |
Accrual Budgeting and Appropriations | Financial Management – Financial Management, Oversight and Reporting | Planned | March 2013 |
Management of Central Funds | Government-Wide Funds and Public Service Employer Payments | Under review | March 2013 |
Management of Government Security | Management Frameworks – Government Security | Planned | March 2013 |
Leadership Development Framework | People Management – Direction Setting | Planned | March 2014 |
Research and Policy Initiatives Assistance | Internal Services – Resource Management Services | Planned | March 2014 |
Program Activity | Forecast Revenue 2010–11 |
Planned Revenue 2011–12 |
Planned Revenue 2012–13 |
Planned Revenue 2013–14 |
---|---|---|---|---|
People Management | ||||
Revenue related to the administration of the Public Service Superannuation Act1 | 6,335 | 6,243 | 6,835 | – |
Government-Wide Funds and Public Service Employer Payments | ||||
Revenue related to public service insurance2 | 369,999 | 469,252 | 324,700 | 307,100 |
Total Respendable Revenue | 376,334 | 475,495 | 331,535 | 307,100 |
1. Respendable revenue received is to cover salaries and operating costs from Public Service Superannuation with respect to chargeable costs associated with administering the Public Service Superannuation Act. Treasury Board approval to renew this respendable revenue authority will be sought by 2012–13.
2. Respendable revenue received is to cover health care insurance plans' costs from revolving funds and 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. The figures for 2012–13 and 2013–14 do not reflect forecasted increases in revenues that have not as yet been approved by Treasury Board.
Program Activity | Forecast Revenue 2010–11 |
Planned Revenue 2011–12 |
Planned Revenue 2012–13 |
Planned Revenue 2013–14 |
---|---|---|---|---|
People Management | ||||
Revenue related to the administration of the Public Service Superannuation Act1 | 1,510 | 1,557 | 1,591 | – |
Government-Wide Funds and Public Service Employer Payments | ||||
Revenue from parking fees2 | 10,187 | 8,965 | 7,889 | 6,942 |
Total Non-Respendable Revenue | 11,697 | 10,522 | 9,480 | 6,942 |
Total Respendable and Non-Respendable Revenue | 388,031 | 486,017 | 341,015 | 314,042 |
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. Treasury Board approval to renew this non-respendable revenue authority will be sought by 2012–13.
2. Parking fees represent 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.
Statement of Management Responsibility
Future-oriented Statement of Financial Position
Future-oriented Statement of Operations
Future-oriented Statement of Equity of Canada
Treasury Board of Canada Secretariat (Secretariat) management is responsible for these future-oriented financial statements, including responsibility for the appropriateness of the assumptions on which these statements were prepared. These statements are based on the best information available and assumptions adopted as at February 14, 2011 and reflect the plans described in the Report on Plans and Priorities.
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Contingent liabilities (Note 10) The accompanying notes form an integral part of these future-oriented financial statements. |
||
Assets | ||
Financial assets | ||
Due from Consolidated Revenue Fund (Note 4c) | 147,423 | 105,872 |
Accounts Receivable and Advances (Note 6) | 383,142 | 421,775 |
Total financial assets | 530,565 | 527,647 |
Non-financial assets | ||
Tangible capital assets (Note 8) | 14,624 | 11,716 |
Total non-financial assets | 14,624 | 11,716 |
Total assets | 545,189 | 539,363 |
Liabilities | ||
Accounts payables and accrued liabilities (Note 7) | 602,954 | 673,945 |
Vacation pay and compensatory leave | 9,443 | 9,342 |
Employee future benefits (Note 9) | 36,656 | 36,263 |
Sub | 649,053 | 719,550 |
Equity of Canada | (103,864) | (180,187) |
total lialibites and equity | 545,189 | 539,363 |
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Segmented information (Note 13) The accompanying notes form an integral part of these future-oriented financial statements. |
||
Expenses | ||
Government-wide Funds and Public Service Employer Payments | 2,293,315 | 2,458,425 |
Management Frameworks | 77,256 | 79,670 |
People Management | 73,152 | 71,608 |
Expenditure Management | 41,545 | 39,984 |
Financial Management | 38,594 | 36,183 |
Internal Services | 93,891 | 88,256 |
Total Expenses | 2,617,753 | 2,774,126 |
Revenues | ||
Government-wide Funds and Public Service Employer Payments | 10,227 | 9,010 |
Expenditure Management | 7,846 | 7,800 |
Internal Services | 2 | 2 |
Total Revenues | 18,075 | 16,812 |
Net Cost of Operations | 2,599,678 | 2,757,314 |
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Equity of Canada, beginning of year | 297,481 | (103,864) |
Net cost of operations | (2,599,678) | (2,757,314) |
Net cash provided by Government | 2,263,286 | 2,697,924 |
Change in due from the Consolidated Revenue Funds | (88,857) | (41,552) |
Service provided without charge by other government departments (Note 12) | 23,904 | 24,619 |
Equity of Canada, end of year | (103,864) | (180,187) |
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
The accompanying notes form an integral part of these future-oriented financial statements. |
||
Operating activities | ||
Net cost of operations | 2,599,678 | 2,757,314 |
Non-cash items: | ||
Amortization of capital assets | (3,482) | (3,830) |
Service provided without charge by other government departments | (23,904) | (24,619) |
Variations in Statement of Financial Position: | ||
Increase (Decrease) in accounts receivable and advances | (276,312) | 38,633 |
Increase (Decrease) in prepaid expenses | (64) | - |
Decrease (Increase) in accounts payable and accrued liabilities | (36,179) | (70,990) |
Decrease (Increase) in vacation pay and compensatory leave | 694 | 101 |
Decrease (Increase) in employee severance benefits | (530) | 393 |
Cash used in operating activities | 2,259,901 | 2,697,002 |
Capital investing activities | ||
Acquisition of tangible capital assets | 3,385 | 922 |
Cash used in capital investing activities | 3,385 | 922 |
Net cash provided by the Government of Canada | 2,263,286 | 2,697,924 |
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:
The Government-wide Funds and Public Service Employer Payments program activity accounts for funds that are held centrally by the Secretariat to supplement other appropriations, and from which payments and receipts are made on behalf of other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Treasury Board as employer of the core public administration.
In support of Treasury Board's role as management board, the Secretariat provides the framework for the management of government operations. It does so by developing specific policies, regulations, directives, and guidelines that, once approved by the Treasury Board, provide the parameters within which deputy heads manage their departments. The Secretariat also helps build understanding and capacity by reaching out to the different communities within departments and agencies (e.g., finance, human resources) that support deputy heads in implementing Treasury Board policies.
The Treasury Board's people management role is supported by the Secretariat's People Management program activity. The Secretariat provides analysis and recommendations to Treasury Board to ensure that deputy heads across government have the policies and guidance they need to manage all aspects of human resources within their departments and agencies. This program activity also includes the Secretariat's responsibilities for overseeing collective bargaining, labour relations, and pension and benefits plans.
Of all the Treasury Board's roles, the budget office is probably the best known. It is supported by two program activities: Expenditure Management and Financial Management. Through the Expenditure Management program activity, the government balances its books each year. The Secretariat provides analysis and support to the President of the Treasury Board to report to Parliament first on the funding estimated for government operations in a specific year and then on the amounts actually expended. The Expenditure Management program activity also includes the Secretariat's responsibility for managing public sector compensation (i.e., the costs of pay and benefits), as well as its role in reviewing, analyzing, and challenging departmental spending proposals to ensure a focus on results and values for Canadians.
The Financial Management program activity is the other aspect of the budget office function. Through this program activity, the Secretariat develops policies and guidance to ensure that the financial management community across government has the right direction to carry out its financial responsibilities. The quality of financial management across departments is important for maintaining the accuracy and integrity of the government's financial records and accounts. This program activity also includes the Secretariat's efforts to build capacity within the financial and audit communities, as well as its audit responsibilities.
The Secretariat must implement Treasury Board policies to ensure the smooth running of its internal operations. Efforts in this area are captured in the Internal Services program activity. These include support functions such as communications, financial and human resources management, real property, information technology, and procurement. These services support all the Secretariat's other program activities.
The future-oriented statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.
The main assumptions are as follow:
These assumptions are adopted as at February 14, 2011.
While every attempt has been made to accurately forecast final results for the remainder of 2010-11 and for 2011-2012, actual results achieved for both years are likely to vary from forecast information presented, and this variation could be material.
In preparing these financial statements the Secretariat has made estimates and assumptions concerning the future. These estimates and judgments may differ form the subsequent actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include further changes to the operating budget through additional new initiatives, the results of the announced Strategic Review of the Treasury Board Secretariat, or technical adjustments later in the year.
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.
The future-oriented financial statements have been prepared in accordance with Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from the Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
The Secretariat is financed by the Government of Canada through parliamentary appropriations. The cash accounting basis is used to recognize transactions affecting parliamentary appropriations. The future-oriented financial statements are based on accrual accounting. Consequently, items presented in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 5 provides a reconciliation between the bases of reporting.
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.
Amounts due from/to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. The amounts due from the CRF represent the net amount of cash that the Secretariat is entitled to draw from the CRF without further appropriations to discharge its liabilities.
Revenues are accounted for in the period in which the underlying transactions or event that give rise to the revenues occurred.
Expenses are presented on an accrual basis:
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.
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.
Accounts receivable and advances are stated at amounts expected to be ultimately realized.
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 future-oriented financial statements.
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 |
The Secretariat receives most of its funding through expenditure authorities provided by Parliament. 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:
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Authorities requested: | ||
Vote 1 - Program expenditures | 264,532 | 249,895 |
Vote 5 - Government contingencies | 750,000 | 750,000 |
Vote 10 - Government-wide initiatives | 6,215 | 8,511 |
Vote 15 - Compensation adjustments | - | - |
Vote 20 - Public service insurance | 2,287,094 | 2,452,205 |
Vote 25 - Operating budget carry forward | 1,200,000 | 1,200,000 |
Vote 30 - Paylist requirements | 600,000 | 600,000 |
Vote 33 - Capital budget carry forward | - | 600,000 |
5,107,841 | 5,860,611 | |
Statutory authorities: | ||
President of Treasury Board - salary & motor car allowance | 79 | 78 |
Contribution to employee benefit plans | 29,592 | 32,452 |
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 | - | - |
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts & the Employment Insurance Act | 6,200 | 6,200 |
35,891 | 38,750 | |
Authorities to transfer or lapse: | ||
Vote 5 - Government contingencies | (750,000) | (750,000) |
Vote 10 - Government-wide initiatives | (6,215) | (8,511) |
Vote 15 - Compensation adjustments | - | - |
Vote 25 - Operating budget carry forward | (1,200,000) | (1,200,000) |
Vote 30 - Paylist requirements | (600,000) | (600,000) |
Vote 33 - Capital budget carry forward | - | (600,000) |
(2,556,215) | (3,158,511) | |
Forecasted authorities available | 2,587,517 | 2,740,850 |
Forecast authorities requested for the year ending March 31, 2012 are the planned spending amounts presented in the 2011-2012 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2011 include amounts presented in 2010-2011 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Net cost of operations | 2,599,678 | 2,757,314 |
Adjustment for items affecting net cost of operations but not affecting authorities: | ||
Add (Less): | ||
Services provided without charge by other government departments | (23,904) | (24,619) |
Revenue not available for spending | 11,740 | 10,569 |
Decrease (Increase) in vacation pay and compensatory leave | 694 | 101 |
Decrease (Increase) in employee severance benefits | (530) | 393 |
Amortization of tangible capitals assets | (3,482) | (3,830) |
(15,482) | (17,386) | |
Adjustment for items not affecting net cost of operations but affecting appropriations: | ||
Acquisition of tangible assets | 3,385 | 922 |
Prepaid Expenses | (64) | |
Forecast authorities available | 2,587,517 | 2,740,850 |
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Receivables from other government departments and agencies | 382,530 | 420,981 |
Receivables from external parties | 612 | 794 |
383,142 | 421,775 |
The bulk of receivables from other government departments and agencies are related to receivables established as a result of employee benefit plans.
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Accounts payable to other government department and agencies | 350,046 | 385,342 |
Accounts payable to external parties | 252,908 | 288,603 |
602,954 | 673,945 |
The bulk of payables to other government departments and agencies are related to receivables established as a result of employee benefit plans.
The following table presents the details of Tangible Capital Assets:
($ thousands) | Cost | Accumulated amortization | Forecast Net Book Value | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Capital asset class | Opening balance | Acquisitions/ Transfers | Disposals and write-offs | Closing balance | Opening balance | Amortization | Disposals and write-offs | Closing balance | 2012 | 2011 |
Machinery and equipment | 28,206 | 922 | - | 29,128 | 13,623 | 3,800 | - | 17,423 | 11,705 | 14,583 |
Motor vehicles | 125 | - | - | 125 | 84 | 30 | - | 114 | 11 | 41 |
Leasehold improvements | 1,952 | - | - | 1,952 | 1,952 | - | - | 1,952 | - | - |
Total | 30,283 | 922 | - | 31,205 | 15,659 | 3,830 | - | 19,489 | 11,716 | 14,624 |
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.
The Secretariat estimates $20,773thousand in 2011 and $23,365 thousand in 2012 in respect of its own employees.
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.
Information about the severance benefits, estimated as at the date of these statements.
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Accrued benefit obligation, beginning of year | 36,126 | 36,656 |
Accrued expense for the year | 530 | (393) |
Accrued benefit obligation, end of year | 36,656 | 36,263 |
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 $67 billion. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. As the likelihood of these future events occurring is undeterminable and the estimate of losses is not estimable, no accrual for these contingent liabilities has been made in the financial statements.
The most significant of these legal actions is described as follows:
In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the Public Service (PSSA), RCMP (RCMPSA), and Canadian Forces (CFSA) superannuation plans. The new Act authorized the President of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the plaintiffs' actions were dismissed. In February 2008, all 3 plaintiffs appealed the decisions. The appeal was heard in April 2010. On October 7, 2010, the Ontario Court of Appeal dismissed the plaintiff's appeal. In December 2010, all three plaintiffs applied for Leave to Appeal to the Supreme Court of Canada.
The nature of the Secretariat's activities can result in some large multi-year contracts and obligations whereby the Secretariat could be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
($ thousands) | 2011 | 2012 | 2013 | 2014 | 2015 and there-after | Total |
---|---|---|---|---|---|---|
Public Service Health/Dental Plans | 31,414 | 32,599 | 23,471 | 25,232 | 27,407 | 140,123 |
Other professional services | 6,611 | 3,276 | 32 | - | - | 9,919 |
Management consulting | 2,522 | 1,149 | - | - | - | 3,671 |
Protection services | 1,173 | - | - | - | - | 1,173 |
Computer Services | 3,245 | 288 | - | - | - | 3,533 |
Total | 44,965 | 37,312 | 23,503 | 25,232 | 27,407 | 158,419 |
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. In addition, the Secretariat has the responsibility to administer and fund the employer's contribution to the Public Health and Dental insurance plans through its centrally managed funds. During the year, the Secretariat forecasted to receive and provide common services as disclosed below.
During the year, the Secretariat is forecasted to receive without charge from other government departments accommodation and legal fees. These services without charge have been recognized in the Secretariat future-oriented Statement of Operations as follows:
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Forecast for 2012 does not add due to rounding. | ||
Accommodation | 19,780 | 20,157 |
Legal services | 4,124 | 4,461 |
Total | 23,904 | 24,619 |
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.
During the year, the Secretariat forecasted to provide services without charge to other government departments, related to the provision of the employer's contribution to the health, dental and other employee insurance plans and payroll benefits in the amount of $1,565,936 ($1,581,595 in 2011-2012).
Estimated Results 2011 Total | GF & PSEP | MF | PM | EM | FM | IS | Forecast 2012 Total | |
---|---|---|---|---|---|---|---|---|
Legend: GF & PSEP – Government-wide Funds and Public Service Employer Payments |
||||||||
Transfer payment | 200 | - | - | - | - | - | - | - |
Operating Expenses: | ||||||||
Government-wide funds and publics service employer payments | 2,293,315 | 2,458,425 | - | - | - | - | - | 2,458,425 |
Salary & employee benefits | 214,595 | - | 51,166 | 50,529 | 27,408 | 23,337 | 59,521 | 211,961 |
Professional & Special Services | 69,973 | - | 18,455 | 12,497 | 7,172 | 8,245 | 17,239 | 63,608 |
Accommodation | 19,781 | - | 4,941 | 4,342 | 2,738 | 2,331 | 5,805 | 20,157 |
Transport & telecommunications | 7,804 | - | 1,589 | 1,272 | 798 | 680 | 1,713 | 6,052 |
Machinery, equipment, parts & tools | 1,402 | - | 942 | 828 | 522 | 444 | 1,107 | 3,843 |
Repair & maintenance | 506 | - | 336 | 296 | 186 | 159 | 395 | 1,372 |
Utilities, materiel & supplies | 2,520 | - | 507 | 419 | 265 | 225 | 564 | 1,980 |
Information | 1,222 | - | 357 | 230 | 142 | 121 | 315 | 1,165 |
Rentals | 1,477 | - | 344 | 287 | 181 | 154 | 384 | 1,350 |
Amortization | 3,482 | - | 939 | 825 | 520 | 443 | 1,103 | 3,830 |
Other subsidies & payment | 1,476 | - | 94 | 83 | 52 | 44 | 110 | 383 |
Total Expenses | 2,617,753 | 2,458,425 | 79,670 | 71,608 | 39,984 | 36,183 | 88,256 | 2,774,126 |
Revenues | ||||||||
Revenue Credited to the vote | (6,335) | - | - | (6,243) | - | - | - | (6,243) |
Other Revenues | (11,740) | (9,010) | - | (1,557) | - | - | (2) | (10,569) |
Total Revenues | (18,075) | (9,010) | - | (7,800) | - | - | (2) | (16,812) |
Net Cost of Operations | 2,599,678 | 2,449,415 | 79,670 | 63,808 | 39,984 | 36,183 | 88,254 | 2,757,314 |
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:
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:
Estimated Results 2011 | Forecast 2012 | |
---|---|---|
Expenses: | ||
Public Service Pension Plan & Retirement Compensation Arrangement contributions (Statutory) | 2,959,792 | 3,259,787 |
Public Service Pension Plan & Retirement Compensation in respect of actuarial deficits (Statutory) | 6,200 | 6,200 |
Public Service Death Benefit Account contributions (Statutory) | 12,516 | 13,526 |
Canada/Quebec Pension plan contributions (Statutory) | 738,692 | 818,593 |
Employment Insurance premiums (Statutory) | 296,104 | 319,245 |
Employment Insurance premiums reduction (Vote 20) | 1,446 | 1,839 |
Quebec Parental Insurance Plan premiums (Vote 20) | 35,808 | 37,052 |
Public Service Health Care Plan premiums (Vote 20) | 1,035,487 | 1,181,630 |
Public Service Dental Care Plan claims (Vote 20) | 275,706 | 298,016 |
Pensioners' Dental Services Plan claims (Vote 20) | 138,823 | 150,307 |
Provincial Health Insurance Plan premiums (Vote 20) | 31,809 | 33,002 |
Provincial payroll taxes (Vote 20) | 530,158 | 590,381 |
Group disability and life insurance premiums (Vote 20) | 532,668 | 547,161 |
Pension & other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad (Vote 20) | 67,018 | 73,820 |
Pension & similar payments to former government employees (Vote 20) | 537 | 404 |
Miscellaneous Special Payments (Vote 20) | - | - |
Operating expenses (Vote 20) | 7,653 | 7,866 |
6,670,417 | 7,338,829 | |
Recoveries: | ||
Employer's contributions to government employee benefit plans recovered from government departments and agencies (Statutory) | 4,007,104 | 4,411,152 |
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20) | 161,021 | 184,170 |
Employee's contributions to Public Service Health Care Plan recovered from government departments and agencies (Vote 20) | 70,688 | 74,332 |
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20) | 138,289 | 210,750 |
4,377,102 | 4,880,404 | |
Net Expenses | 2,293,315 | 2,458,425 |
The following table presents details of revenues by category and by activities:
Estimated Results 2011 Total | GF & PSEP | MF | PM | EM | FM | IS | Forecast 2012 Total | |
---|---|---|---|---|---|---|---|---|
Legend: GF & PSEP – Government-wide Funds and Public Service Employer Payments |
||||||||
Parking Fees | 10,187 | 8,965 | - | - | - | - | - | 8,965 |
Recovery of pension admin. Costs | 7,846 | - | - | 7,800 | - | - | - | 7,800 |
Other revenues | 42 | 45 | - | - | - | - | 2 | 47 |
Total | 18,075 | 9,010 | - | 7,800 | - | - | 2 | 16,812 |
During the year, the Secretariat adopted the revised Treasury Board Accounting Standard (TBAS) 1.2: Departmental and Agency Financial Statements which is effective for the Secretariat for the 2010-2011 fiscal year. The major change in the accounting policies of the Department required by the adoption of the revised TBAS 1.2 is the recording for amounts due from the Consolidated Revenue Fund as an asset on the future-oriented Statement of Financial position.
The adoption of the new Treasury Board accounting policies have been accounted for retroactively with the impact on the forecast of 2009-2010.
Statement of Financial Position ($ thousands) | 2010 As previously stated | Effect of changes | 2010 Restated |
---|---|---|---|
Assets | 674,240 | 236,279 | 895,733 |
Equity of Canada | 61,202 | 236,279 | 297,481 |