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2012-13
Report on Plans and Priorities

Treasury Board of Canada Secretariat

Supplementary Information (Tables)

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Table of Contents

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

Greening Government Operations (GGO)

Overview

The GGO supplementary table applies to departments and agencies bound by the Federal Sustainable Development Act, the Policy on Green Procurement, or the Policy Framework for Offsetting Greenhouse Gas Emissions from Major International Events.

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.

Please note:

• RPP refers to the Report on Plans and Priorities and represents planned/expected results.
• DPR refers to the Departmental Performance Report and represents actual results.

Surplus Electronic and Electrical Equipment Target

Printing Unit Reduction Target

Paper Consumption Target

Green Meetings Target

Green Procurement Targets

8.10 As of April 1, 2011, each department will establish at least 3 SMART green procurement targets to reduce environmental impacts.

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.

Sources of Respendable and Non-Respendable Revenue

A. Respendable Revenue

Program Activity	($ thousands)
	Forecast Revenue 2011–12	Planned Revenue 2012–13	Planned Revenue 2013–14	Planned Revenue 2014–15
People Management
Revenue related to the administration of the Public Service Superannuation Act 1	6,243	6,835
Internal Services 2 (supports all strategic outcomes within the organization)		6,209	6,209	6,209
Government-Wide Funds and Public Service Employer Payments
Revenue related to public service insurance3	469,252	445,197	460,941	477,426
Total Respendable Revenue	475,495	458,241	467,150	483,635

1. Respendable revenue covers salaries and operating costs for 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 2013–14.

2. As a result of an amendment to the Financial Administration Act, 2012–13 is the first year that internal support services are reflected as revenue in the Main Estimates. Previously, internal support services were recovered through settlements between departments.

3. Respendable revenue covers health care insurance plans' costs with respect to revolving funds and departments and agencies that pay for employee benefit plans from a non-statutory appropriation. This account is also used to record the pensioners' share of Pensioners' Dental Services Plan contributions.

B. Non-Respendable Revenue

Program Activity	($ thousands)
	Forecast Revenue 2011–12	Planned Revenue 2012–13	Planned Revenue 2013–14	Planned Revenue 2014–15
People Management
Revenue related to the administration of the Public Service Superannuation Act1	1,557	1,591
Government-Wide Funds and Public Service Employer Payments
Revenue from parking fees2	7,577	6,819	6,819	6,819
Total Non-Respendable Revenue	9,134	8,410	6,819	6,819
Total Respendable and Non-Respendable Revenue	484,629	466,651	473,969	490,454

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 2013–14.

2. These are 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.

Upcoming Internal Audits and Evaluations Over the Next Three Fiscal Years

A. All upcoming Internal Audits over the next three fiscal years

The following audits were included in the Risk-Based Audit Plan 2011–14, which was approved in May 2011, as well as in a subsequent adjustment to the Plan approved in November 2011. 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 the Interdepartmental Settlements Process	Assurance	In planning	June 2012
Audit of Human Resources Planning	Assurance	In planning	June 2012
Audit of the Administration of the External Expert Contract on the Strategic and Operating Review	Assurance	In planning	June 2012
Audit of the Secretariat's Integrated Risk Management Framework	Assurance	Planned	December 2012
Audit of IT Governance	Assurance	Planned	December 2012
Audit of Contracting	Assurance	Planned	December 2012
Audit of Values and Ethics	Assurance	Planned	March 2013
Audit of the Expenditure Management Component	Assurance	Planned	March 2013
Audit of the Secretariat's Management Control Framework of the Public Service Health Care Plan	Assurance	Planned	December 2013
Audit of the Security Investigations Process	Assurance	Planned	December 2013
Audit of the Secretariat's Framework of Internal Control over Financial Management	Assurance	Planned	December 2013
Audit of IT Security	Assurance	Planned	March 2014
Audit of Disaster Recovery Planning	Assurance	Planned	June 2014

Electronic link to Internal Audit Plan: Not available

B. All upcoming Evaluations over the next three fiscal years

The following evaluations were included in the Departmental Evaluation Plan 2011–12, which was approved in December 2011.

Name of Evaluation	Program Activity	Status	Expected Completion Date
Joint Learning Program	People Management	In progress	May 2012
Management of Compensation	People Management	Evaluability assessment in progress	To be determined (TBD)
Results-Based Expenditure Management Policy Centre	Expenditure Management	Evaluability assessment planned	TBD
Official Languages Centre of Excellence Initiative	People Management	In progress	May 2012
Cabinet Directive on Streamlining Regulation	Management Frameworks	In progress	December 2012
Internal Audit Human Resources Management Framework	Financial Management	Planned	TBD
Expenditure Management Advice and Estimates	Expenditure Management	Evaluability assessment planned	TBD
Right of First Refusal for Guard Services	Financial Management	Planned	April 2014
Research and Policy Initiatives Assistance Program	Internal Services	Planned	January 2014
People Management Policy Centres	People Management	Evaluability assessment planned	TBD
Information Management Policy Centres	Management Frameworks	Evaluability assessment planned	TBD

Note: Evaluability assessments are conducted to systematically gauge a program area's readiness and capacity to furnish data for an evaluation and to identify areas where performance measures are still required to achieve this. The results of the evaluability assessments inform the evaluation planning process in terms of the feasibility, timing and resourcing of evaluations over the five-year cycle and are used to credibly address evaluation issues pertaining to relevance and performance.

Electronic link to Evaluation Plan: Not available

Future-oriented Financial Statements
For the year ended March 31, 2013

Table of Contents

• Statement of Management Responsibility
• Future-Oriented Statement of Financial Position
• Future-Oriented Statement of Operations
• Future-Oriented Statement of Equity of Canada
• Future-Oriented Statement of Cash Flow
• Notes to the Future-Oriented Financial Statements

Statement of Management Responsibility

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 April 26, 2012, and reflect the plans described in the Report on Plans and Priorities.

 

Future-Oriented Statement of Financial Position

As at March 31
(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Assets
Financial Assets
Due from the Consolidated Revenue Fund	96,978	102,644
Accounts receivable and advances (Note 6)	303,938	302,164
Total Financial Assets	400,916	404,808
Non-Financial Assets
Prepaid expenses	19	0
Tangible capital assets (Note 7)	8,655	7,291
Total Non-Financial Assets	8,674	7,291
Total Assets	409,590	412,099
Liabilities
Accounts payable and accrued liabilities (Note 8)	423,966	428,391
Vacation pay and compensatory leave	9,644	8,956
Employee future benefits (Note 9)	33,704	33,124
Total Liabilities	467,314	470,471
Equity of Canada	(57,724)	(58,372)
Total Liabilities and Equity	409,590	412,099

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to December 31, 2011.

Contingent liabilities (Note 10)

Contractual obligations (Note 11)

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

Future-Oriented Statement of Operations

For the Year Ending March 31
(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Expenses
Government-Wide Funds and Public Service Employer Payments	2,325,455	2,283,440
Management Frameworks	83,703	60,514
People Management	76,426	71,688
Expenditure Management	60,786	38,019
Financial Management	37,750	37,712
Internal Services	101,858	91,911
Total Expenses	2,685,978	2,583,284
Revenues
Government-Wide Funds and Public Service Employer Payments	7,609	6,854
Management Frameworks	0	3
People Management	7,800	8,429
Internal Services	8,612	6,214
Total Revenues	24,021	21,500
Net Cost from Continuing Operations	2,661,957	2,561,784
Transferred Operations (Note 12)
Expenses	5,415	0
Revenues	0	0
Net Cost of Transferred Operations	5,415	0
Net Cost of Operations	2,667,372	2,561,784

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to December 31, 2011.

Segmented information (Note 13)

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

Future-Oriented Statement of Equity of Canada

For the Year Ending March 31
(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Equity of Canada, beginning of year	(80,966)	(57,724)
Net cost of operations	(2,667,372)	(2,561,784)
Net cash provided by government	2,703,150	2,531,691
Change in due to/from the Consolidated Revenue Fund	(31,837)	5,666
Transfer of assets and liabilities from/to other government departments (Note 14)	(4,515)	0
Service provided without charge by other government departments (Note 12)	23,816	23,779
Equity of Canada, end of year	(57,724)	(58,372)

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to December 31, 2011.

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

Future-Oriented Statement of Cash Flow

For the Year Ending March 31
(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Operating Activities
Net cost of operations	2,667,372	2,561,784
Non-cash items:
Amortization of capital assets	(3,724)	(1,459)
Gain on tangible capital assets	9	10
Service provided without charge by other government departments	(23,816)	(23,779)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and  advances	(49,448)	(1,774)
Increase (decrease) in prepaid expenses	(39)	(19)
Decrease (increase) in accounts payable and accrued liabilities	106,378	(4,425)
Decrease (increase) in vacation pay and compensatory leave	(551)	688
Decrease (increase) in employee severance benefits	5,326	580
Cash used in operating activities	2,701,507	2,531,606
Capital Investing Activities
Acquisition of tangible capital assets	1,666	95
Proceeds from disposition of tangible capital assets	(23)	(10)
Cash used in capital investing activities	(1,643)	85
Net Cash Provided by the Government of Canada	(2,703,150)	(2,531,691)

Information for the year ended March 31, 2012, includes actual amounts from April 1, 2011, to December 31, 2011.

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

Notes to the 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 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.

b)  Management Frameworks

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.

c)  People Management

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.

d)  Expenditure Management

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.

e)  Financial Management

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.

f)  Internal Services

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.

2.  Methodology and Significant Assumptions

The future-oriented statements have been prepared on the basis of the government priorities and the departmental plans as described in the Report on Plans and Priorities.

The main assumptions are as follows:

1. The Secretariat's activities will remain substantially the same as the previous year's activities.
2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
3. Estimated year-end information for 2011–12 is used as the opening position for the 2012–13 planned results.

These assumptions are adopted as at April 26, 2012.

3.  Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2011–12 and for 2012–13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing these future-oriented financial statements, the Secretariat has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions 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:

• The timing and amounts of acquisitions and disposals of property, plant, and equipment, which may affect gains or losses and the amortization expense;
• Implementation of new collective agreements;
• Economic conditions, which may affect both the amount of revenue earned and the collectability of loan receivables;
• Interest rates in effect at the time of issue, which will affect the net present value of non-interest bearing loans; and
• Further changes to the operating budget through additional new initiatives or reductions, and/or technical adjustments later in the year.

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

4.  Summary of Significant Accounting Policies

The future-oriented financial statements have been prepared in accordance with Treasury Board accounting policies in effect for the 2011–12 fiscal year. These accounting policies 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 Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

a) Parliamentary appropriations

The Secretariat is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the department do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash-flow requirements. 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 authorities from Parliament. Note 5 provides reconciliation between the different 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 the government is the difference between all cash receipts and all cash disbursements, including transactions between government departments.

c) Amounts due from/to the CRF

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 parliamentary expenditure authorities to discharge its liabilities.

d) Revenues 

Revenues are accounted for in the period in which the underlying transactions or events that give rise to the revenues occurred.

e) Expenses

Expenses are recorded on an 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 accrued as the benefits are earned under the respective terms of employment.
• Services provided without charge by other government departments for accommodation and legal services are reported as operating expenses at their estimated cost.

f) Employee future benefits

(i) Pension and other employee benefits:

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

Eligible employees of the Secretariat also participate in the Public Service Pension Plan, and the Secretariat's financial reporting responsibility regarding its own employees' participation in the pension plan is limited to its employer contributions.

The Government of Canada also sponsors a variety of other current and future employee benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. Benefit payments for these plans are recognized as expenses when they become due, and no accruals are recorded for future benefits. A portion of these benefits is also recovered from other departments and agencies. This accounting treatment corresponds to the funding provided to the Secretariat through parliamentary appropriations.

For all pension and other future employee benefits, the actuarial liabilities and related disclosures, as well as actuarial surpluses or deficiencies for the whole of government, are recognized in the financial statements of the Government of Canada, which ultimately bears the actuarial and investment risks inherent in these defined benefit plans as the plans' sponsor.

(ii) Severance benefits:

Certain employee groups are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees 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 and loans receivable

Accounts and loans receivable are stated at the lower cost of net recoverable value.

h) Contingent liabilities

Contingent liabilities are potential liabilities that 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.

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 historic treasures that have cultural, aesthetic, or historic 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
Computer hardware	3 years
Computer software	3 to 10 years
Machinery and equipment	3 to 10 years
Motor vehicles	3 years
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

5. Parliamentary Authorities

The Secretariat receives most of its funding through expenditure authorities provided by Parliament. Items recognized in the Future-Oriented Statement of Operations and the Future-Oriented Statement of Financial Position in one year may be funded through parliamentary authorities 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) Authorities requested:

(in thousands of dollars)

	Estimated 2012	Planned 2013
Authorities requested:
Vote 1—Program expenditures	298,154	231,981
Vote 5—Government contingencies	750,000	750,000
Vote 10—Government-wide initiatives	8,511	3,193
Vote 20—Public service insurance	2,380,408	2,277,220
Vote 25—Operating budget carry forward	1,200,000	1,200,000
Vote 30—Paylist requirements	1,900,000	600,000
Vote 33—Capital budget carry forward	600,000	600,000
Subtotal	7,137,073	5,662,394
Statutory authorities:
President of Treasury Board—Salary and motor car allowance	78	78
Contribution to employee benefit plans	31,802	30,885
Payments under the Public Service Pension Adjustment Act	20	20
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts, and the Employment Insurance Act	6,200	6,200
Subtotal	38,100	37,183
Authorities to transfer or lapse:
Vote 5—Government contingencies	(750,000)	(750,000)
Vote 10—Government-wide initiatives	(8,511)	(3,193)
Vote 25—Operating budget carry forward	(1,200,000)	(1,200,000)
Vote 30—Paylist requirements	(1,900,000)	(600,000)
Vote 33—Capital budget carry forward	(600,000)	(600,000)
Subtotal	(4,458,511)	(3,153,193)
Forecasted authorities available	2,716,662	2,546,384

Authorities presented reflect current forecasts of statutory items; approved initiatives included and expected to be included in Estimates documents; and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.

b) Reconciliation of net cost of operations to requested authorities:

(in thousands of dollars)

	Estimated 2012	Planned 2013
Net cost of operations	2,667,372	2,561,784
Adjustment for items affecting net cost of operations, but not affecting authorities:
Add (less):
Services provided without charge by other government departments	(23,816)	(23,779)
Revenue not available for spending	9,167	8,446
Gain (loss) on disposal of tangible capital assets	9	10
Decrease (increase) in vacation pay and compensatory leave	(551)	688
Decrease (increase) in employee future benefits	5,326	580
Amortization of tangible capitals assets	(3,724)	(1,459)
Refunds of previous years' expenditures	61,174	0
Subtotal	47,585	(15,514)
Adjustment for items not affecting net cost of operations, but affecting appropriations:
Acquisition of tangible assets	1,666	95
Prepaid expenses	39	19
Forecast authorities available	2,716,662	2,546,384

6. Accounts Receivable and Advances

The following table presents details of the Secretariat's accounts receivable and advance balances:

(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Receivables from other government departments and agencies	306,502	301,979
Receivables from external parties	95	10
Advances to external parties	269	175
Employee advances	72	0
Total Accounts Receivable and Advances	303,938	302,164

The bulk of receivables from other government departments and agencies are related to receivables established as a result of employee benefit plans.

7. Tangible Capital Assets

(in thousands of dollars)

Cost					Accumulated Amortization				Net Book Value
Capital asset class	Opening balance	Acquisitions	Disposals and write-offs	Closing balance	Opening balance	Amorti-zation	Disposals and write-offs	Closing balance	2012	2013
Machinery and equipment	77	0	0	77	77	0	0	77	0	0
Motor vehicles	120	95	(95)	120	94	18	(95)	17	26	103
Leasehold improvements	1,952	0	0	1,952	1,952	0	0	1,952	0	0
Computer hardware	88	0	0	88	88	0	0	88	0	0
Computer software	14,178	0	0	14,178	5,549	1,441	0	6,990	8,629	7,188
Assets under construction	0	0	0	0	0	0	0	0	0	0
Total	16,415	95	(95)	16,415	7,760	1,459	(95)	9,124	8,655	7,291

Tangible capital assets transferred to Shared Services Canada in 2011–12 are reflected in the opening balance. See Note 14.

8. Accounts Payable and Accrued Liabilities

The following table presents details of the Secretariat's accounts payable and accrued liabilities:

(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Accounts payable to other government departments and agencies	313,800	312,225
Accounts payable to external parties	10,380	10,381
Accrued liabilities	99,786	105,785
Total accounts payable and accrued liabilities	423,966	428,391

The bulk of payables to other government departments and agencies are related to receivables established as a result of employee benefit plans.

9. Employee Benefits

a) Pension benefits

The Secretariat's employees participate in the Public Service Pension Plan, which is sponsored and administered by the government. 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 those of the Canada and Québec Pension Plans, and are indexed to inflation.

Both the employees and the Secretariat contribute to the cost of the pension plan. The forecast expenses for the employer's share are $22,865 thousand in 2011–12 and $22,052 thousand in 2012–13.

The Secretariat's responsibility regarding the pension plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the pension plan's sponsor.

b) Severance benefits

The Secretariat provides severance benefits to certain employee groups based on eligibility, years of service, and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, estimated as at the date of these statements, are as follows:

(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Accrued benefit obligation, beginning of year	39,030	33,704
Severance liquidation for the year	(14,312)	(8,078)
Expected benefit payments during the year	8,986	7,498
Accrued benefit obligation, end of year	33,704	33,124

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 $65 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 indeterminable and the losses are inestimable, 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, RCMP, and Canadian Forces 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 three plaintiffs appealed the decisions to the Ontario Court of Appeal. The appeal was heard in April 2010. On October 8, 2010, the Ontario Court of Appeal dismissed the plaintiffs' appeal. The plaintiffs applied for leave to appeal to the Supreme Court of Canada, which granted leave to appeal on May 5, 2011. The appeal was heard on February 9, 2012. The Court reserved its decision.

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 or goods are received. Significant contractual obligations that can reasonably be estimated are summarized as follows:

(in thousands of dollars)

	2013	2014	2015	2016	2017 and thereafter	Total
Public service health and dental care plans	38,338	30,786	32,097	34,831	20,899	156,951
Other professional services	8,651	314	149	59	0	9,173
Management consulting	513	47	0	0	0	560
Computer services	1,678	101	27	0	0	1,806
Total contractual obligations	49,180	31,248	32,273	34,890	20,899	168,490

Shared Services Canada's portion of contractual obligations for an amount of $2,663 thousand is not included in the above table. These contractual obligations will be transferred at the end of fiscal year 2011–12.

12. Related-Party Transactions

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 service health and dental insurance plans through its centrally managed funds. During the year, the Secretariat is forecasted to receive and provide common services as disclosed in the following.

a) Common services provided without charge by other government departments

During the year, the Secretariat receives services without charge from certain common service organizations, related to accommodation and legal fees. These services provided without charge have been recorded in the Secretariat's Future-Oriented Statement of Operations, as follows:

(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Accommodation	20,339	20,268
Legal services	3,477	3,511
Total	23,816	23,779

The government has centralized some of its administrative activities for efficiency, cost-effectiveness, and economy in delivering programs to the public. As a result, the government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included in the Secretariat's Future-Oriented Statement of Operations.

b) Common services provided without charge to other government departments

During the year, the Secretariat forecasts that it will 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 $1,715,321 thousand in 2011–12 and $1,813,329 thousand in 2012–13.

c) Administration of programs on behalf of other government departments

From April 1 to November 14, 2011, the Secretariat incurred expenses of $5,415 thousand in administering the Secretariat's email, network and data centre. This function was transferred to Shared Services Canada effective November 15, 2011.

d) Other transactions with related parties

(in thousands of dollars)

	Estimated Results 2012	Planned Results 2013
Expenses—Other government departments and agencies	22,264	22,844
Revenues—Other government departments and agencies	1,557	1,591

13. Segmented Information

a) Main program activities

Presentation by segment is based on the Secretariat's program activity architecture. The presentation by segment is based on the same accounting policies described in Note 4,  Summary of Significant Accounting Policies. The following table presents the forecasted expenses incurred and the forecasted revenues generated for the main program activities by major object of expense and by major type of revenue. The segments are as follows:

(in thousands of dollars)

	Estimated Results 2012	GF and PSEP	MF	PM	EM	FM	IS	Planned Results 2013
Legend: GF and PSE Government-Wide Funds and Public Service Employer Payments MF Management Framework PM People Management EM Expenditure Management FM Financial Management IS Internal Services
Operating Expenses:
Government-wide funds and public service employer payments	2,325,455	2,283,440	0	0	0	0	0	2,283,440
Salary and employee benefits	227,052	0	47,543	48,871	29,186	22,147	57,157	204,904
Professional and special services	90,212	0	7,172	12,836	5,003	8,816	19,653	53,480
Accommodation	20,339	0	2,718	4,865	1,896	3,341	7,448	20,268
Transportation and  telecommunications	6,154	0	772	1,248	466	822	1,850	5,158
Machinery, equipment, parts, and tools	5,230	0	722	1,292	503	887	1,978	5,382
Repairs and maintenance	1,591	0	281	504	196	346	771	2,098
Utilities, material, and supplies	2,660	0	382	463	147	259	607	1,858
Information	1,375	0	92	164	64	113	252	685
Rentals	1,631	0	168	257	95	165	376	1,061
Amortization	3,724	0	196	350	136	241	536	1,459
Other subsidies and payments	555	0	468	838	327	575	1,283	3,491
Total Expenses	2,685,978	2,283,440	60,514	71,688	38,019	37,712	91,911	2,583,284
Revenues:
Parking fees, government-wide	7,577	6,819	0	0	0	0	0	6,819
Recovery of pension administration costs	7,800	0	0	8,426	0	0	0	8,426
Internal support services	8,601	0	0	0	0	0	6,211	6,211
Other revenues	43	35	3	3	0	0	3	44
Total Revenues	24,021	6,854	3	8,429	0	0	6,214	21,500
Net Cost of Operations	2,661,957	2,276,586	60,511	63,259	38,019	37,712	85,697	2,561,784

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 the Retirement Compensation Arrangement, including additional contributions in respect of actuarial deficiencies.

The Secretariat also funds payments to, or in respect of, the following:

• The employer's share of contributions to the Public Service Death Benefit Account;
• The employer's share of Canada and Québec Pension Plan contributions and Employment Insurance premiums;
• The employer's share of health, disability, and life insurance premiums and related Québec 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 and Québec 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:

(in thousands of dollars)

Categories	Estimated Results 2012	Planned Results 2013
Expenses:
Public Service Pension Plan and Retirement Compensation Arrangement contributions (statutory)	2,640,553	2,537,800
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits (statutory)	6,200	6,200
Public Service Death Benefit Account contributions (statutory)	11,317	21,326
Canada and Québec Pension Plan contributions (statutory)	646,256	653,999
Employment Insurance premiums (statutory)	274,136	341,217
Employment Insurance premiums reduction (Vote 20)	1,839	1,722
Québec Parental Insurance Plan premiums (Vote 20)	37,052	38,014
Public Service Health Care Plan premiums (Vote 20)	1,121,957	1,146,930
Public Service Dental Care Plan claims (Vote 20)	297,059	292,682
Pensioners' Dental Services Plan claims (Vote 20)	149,909	151,286
Provincial Health Insurance Plan premiums (Vote 20)	33,003	35,611
Provincial payroll taxes (Vote 20)	590,381	533,003
Group disability and life insurance premiums (Vote 20)	545,336	513,478
Pension benefits and similar payments to former government employees (Vote 20)	4,104	4,001
Operating expenses (Vote 20)	7,866	5,709
Total Expenses	6,366,968	6,282,978
Recoveries:
Employer's contributions to government employee benefit plans recovered from government departments and agencies (statutory)	3,572,261	3,554,341
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)	184,170	190,840
Employee's contributions to Public Service Health Care Plan benefits recovered from government departments and agencies (Vote 20)	210,750	178,170
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)	74,332	76,187
Total Recoveries	4,041,513	3,999,538
Net Expenses	2,325,455	2,283,440

Effective January 1, 2012, the Secretariat transferred to the Department of Foreign Affairs and International Trade and to the Department of National Defence the management of pension, insurance, and social security programs for locally engaged staff.

14. Transfer From/To Other Government Departments

1. Effective November 15, 2011, the Secretariat transferred the control and supervision of a portion of its administration costs and functions related to email, network and data centre to Shared Services Canada in accordance with Order-in-Council OIC-2011-1297, including the stewardship responsibility of the assets related to these functions. Accordingly, the Secretariat transferred the assets in the following table to Shared Services Canada on November 15, 2011.
2. During fiscal year 2011–12, the Secretariat transferred to the Department of Finance Canada assets of net book value of $159 thousand, and it received from Industry Canada a vehicle of a net book value of $21 thousand.

(in thousands of dollars)

	Estimated Results 2012
Assets
Tangible capital assets transferred:
To Shared Services Canada	4,377
To the Department of Finance Canada	159
From Industry Canada	-21
Liabilities	0
Adjustment to Equity Account	4,515

Appendix A—Secretariat Centrally Managed Votes Under Program Activity 5: Government-Wide Funds and Public Service Employer Payments

The Treasury Board of Canada Secretariat (Secretariat) centrally manages Votes to perform its statutory responsibilities for managing the government's financial, human and materiel resources. Planned spending in the Secretariat's Program Activity 5: Government-Wide Funds and Public Service Employer Payments relates mainly to the following Vote:

Vote 20—Public Service Insurance

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

• Public service pension, benefit and insurance plans, 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 the Québec 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 Online, 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.

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, paylist 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 the cash management challenges that departments and agencies face for these legal obligations.