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Treasury Board of Canada Secretariat
Future-Oriented Financial Statements
For the Year Ended March 31, 2014

Table of Contents

• Statement of Management Responsibility
• Future-Oriented Statement of Financial Position
• Future-Oriented Statement of Operations and Departmental Net Financial Position
• Future-Oriented Statement of Change in Departmental Net Debt
• 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 the assumptions adopted as at February 28, 2013 and reflect the plans described in the Report on Plans and Priorities.

 

Future-Oriented Statement of Financial Position
As at March 31

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Information for the year ended March 31, 2013, includes actual amounts from April 1, 2012, to October 31, 2012. For contractual obligations, see Note 10. For contingent liabilities, see Note 11. The accompanying notes form an integral part of these future-oriented financial statements.
Liabilities
Accounts payable and accrued liabilities (Note 6)	889,522	887,243
Vacation pay and compensatory leave	8,033	7,030
Employee future benefits (Note 7)	23,796	12,913
Total liabilities	921,351	907,186
Financial assets
Due from Consolidated Revenue Fund	578,858	578,602
Accounts receivable and advances (Note 8)	274,552	272,767
Total gross financial assets	853,410	851,369
Financial assets held on behalf of government
Accounts receivable and advances (Note 8)	(313)	(267)
Total financial assets held on behalf of government	(313)	(267)
Total net financial assets	853,097	851,102
Departmental net debt	68,254	56,084
Non-financial assets
Prepaid expenses	68	71
Tangible capital assets (Note 9)	2,973	81
Total non-financial assets	3,041	152
Departmental net financial position	(65,213)	(55,932)

Future-Oriented Statement of Operations and Departmental Net Financial Position
For the Year Ending March 31

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Information for the year ended March 31, 2013, includes actual amounts from April 1, 2012, to October 31, 2012. For segmented information, see Note 13. The accompanying notes form an integral part of these future-oriented financial statements.
Expenses
Government-Wide Funds and Public Service Employer Payments	2,717,093	2,706,143
Management Frameworks	73,393	57,644
People Management	77,679	55,525
Expenditure Management	43,940	38,058
Financial Management	35,055	34,925
Internal Services	93,611	76,392
Total expenses	3,040,771	2,968,687
Revenues
Recovery of pension administration costs	8,426	8,393
Internal support services	6,209	6,709
Parking fees – Government-wide	5,224	4,702
Other	31	41
Gross revenues	19,890	19,845
Revenues earned on behalf of government	(6,846)	(6,154)
Total net revenues	13,044	13,691
Net cost of operations before government funding and transfers	3,027,727	2,954,996
Government funding and transfers
Net cash provided by government	2,621,694	2,942,126
Change in due from Consolidated Revenue Fund	449,959	(256)
Services provided without charge by other government departments (Note 12)	23,127	22,407
Transfer of assets from other government departments	21	0
Total government funding and transfers	3,094,801	2,964,277
Net cost of operations after government funding and transfers	(67,074)	(9,281)
Departmental net financial position – Beginning of year	(132,287)	(65,213)
Departmental net financial position – End of year	(65,213)	(55,932)

Future-Oriented Statement of Change in Departmental Net Debt
For the Year Ending March 31

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Information for the year ended March 31, 2013, includes actual amounts from April 1, 2012, to October 31, 2012. The accompanying notes form an integral part of these future-oriented financial statements.
Net cost of operations after government funding and transfers	(67,074)	(9,281)
Change due to tangible capital assets
Acquisition of tangible capital assets	0	30
Amortization of tangible capital assets	(5,793)	(2,922)
Proceeds from disposal of tangible capital assets	0	(10)
Gain on disposal of tangible capital assets	0	10
Transfer from other government departments	21	0
Total change due to tangible capital assets	(5,772)	(2,892)
Change due to prepaid expenses	(13)	3
Net (decrease) in departmental net debt	(72,859)	(12,170)
Departmental net debt – Beginning of year	141,113	68,254
Departmental net debt – End of year	68,254	56,084

Future-Oriented Statement of Cash Flow
For the Year Ending March 31

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Information for the year ended March 31, 2013, includes actual amounts from April 1, 2012, to October 31, 2012. The accompanying notes form an integral part of these future-oriented financial statements.
Operating activities
Net cost of operations before government funding and transfers	3,027,727	2,954,996
Non-cash items:
Amortization of tangible capital assets	(5,793)	(2,922)
Gain on disposal of tangible capital assets	0	10
Services provided without charge by other government departments	(23,127)	(22,407)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	72,935	(1,739)
Increase (decrease) in prepaid expenses	(13)	3
Decrease (increase) in accounts payable and accrued liabilities	(451,388)	2,279
Decrease in vacation pay and compensatory leave liabilities	772	1,003
Decrease in employee severance benefits liability	581	10,883
Cash used in operating activities	2,621,694	2,942,106
Capital investing activities
Acquisition of tangible capital assets	0	30
Proceeds from disposition of tangible capital assets	0	(10)
Cash used in capital investing activities	0	20
Net cash provided by the Government of Canada	(2,621,694)	(2,942,126)

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. The Secretariat 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 programs:

a) Government-Wide Funds and Public Service Employer Payments

The Government-Wide Funds and Public Service Employer Payments program accounts for funds that are held centrally by the Secretariat to supplement other appropriations, 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

The Secretariat provides the framework for the management of government operations to support Treasury Board's role as management board. 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 Secretariat's People Management program supports the Treasury Board's people management role. The Secretariat provides analysis and recommendations to the 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 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 programs: Expenditure Management and Financial Management. Through the Expenditure Management program, the Secretariat provides analysis and support to the President of the Treasury Board in reporting to Parliament on the funding estimated for government operations in a specific year and on the amounts actually expended. This program 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 value for Canadians.

e) Financial Management

The Financial Management program is the other aspect of the budget office function. Through this program, 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 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, which includes support functions such as communications, financial and human resources management, real property, information technology, legal and procurement. These services support all of the Secretariat's other programs.

2. Methodology and Significant Assumptions

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

The information in the estimated results for fiscal year 2012–13 is based on actual results as at October 31, 2012, and on forecasts for the remainder of the fiscal year. Estimated year-end information for 2012–13 is used as the opening position for the 2013–14 planned results; forecasts have been made for the planned results for the 2013–14 fiscal year.

The main assumptions underlying the forecasts are as follows:

• The Secretariat's activities will remain substantially the same as for the previous year;
• Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience; and
• These assumptions are adopted as at February 28, 2013.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to forecast final results for the remainder of 2012–13 and for 2013–14, 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 following:

• The timing and amount of acquisitions and the disposal of property, plant and equipment may affect gains or losses and the amortization expense;
• Implementation of new collective agreements;
• Further changes to the operating budget through additional new initiatives 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, nor will it 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 using Government of Canada accounting policies that came into effect for the 2011–12 fiscal year. These accounting policies are based on Canadian public sector accounting standards, and the presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Parliamentary authorities

The Secretariat is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Future-Oriented Statement of Operations and Departmental Net Financial Position and in the Future-Oriented Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 5 provides a 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 is the difference between all cash receipts and all cash disbursements, including transactions between departments and agencies of the government.

c) Amounts due from/to the Consolidated Revenue Fund (CRF)

Amounts due from or to the Consolidated Revenue Fund (CRF) are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Secretariat is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

Revenues are accounted for in the period in which the related transactions or the event that gives rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the Secretariat's liabilities. While the Secretary is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

e) Expenses

Expenses are recorded on an accrual basis:

• Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. Transfer payments that become repayable as a result of conditions specified in the contribution agreement that have come into being are recorded as a reduction to the transfer payment expense and are set up as a receivable.
• Vacation pay and compensatory leave are accrued as the benefits are earned by 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.

f) Government-wide employee benefits

g) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost or net recoverable value. A valuation allowance would be recorded for receivables where recovery is considered uncertain.

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 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
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 the useful life of the improvement

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 Departmental Net 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) Reconciliation of net cost of operations to requested authorities

Parliamentary Authorities - Reconciliation of net cost of operations to requested authorities

	Estimated 2013	Planned 2014
	(in thousands of dollars)
Net cost of operations before government funding and transfers	3,027,727	2,954,996
Adjustment for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments	(23,127)	(22,407)
Gain on disposal of tangible capital assets	0	10
Decrease in vacation pay and compensatory leave liabilities	772	1,003
Decrease in employee severance benefits liability	581	10,883
Amortization of tangible capitals assets	(5,793)	(2,922)
Refunds of previous years' expenditures	3,145	5,058
Subtotal	(24,422)	(8,375)
Adjustment for items not affecting net cost of operations but affecting appropriations:
Acquisition of tangible assets	0	30
Prepaid expenses	(13)	3
Subtotal	(13)	33
Forecast authorities available	3,003,292	2,946,654

b) Authorities requested

Parliamentary Authorities - Authorities requested

	Estimated 2013	Planned 2014
	(in thousands of dollars)
Authorities requested:
Vote 1 – Program expenditures	252,494	207,373
Vote 5 – Government contingencies	750,000	750,000
Vote 10 – Government-wide initiatives	2,093	3,193
Vote 15 – Compensation adjustments	10,656	0
Vote 20 – Public service insurance	2,277,219	2,268,180
Vote 25 – Operating budget carry forward	0	1,200,000
Vote 30 – Paylist requirements	726,134	600,000
Vote 33 – Capital budget carry forward	219,656	600,000
Subtotal	4,238,252	5,628,746
Statutory authorities:
President of the Treasury Board and Minister for the Federal Economic Development Initiative for Northern Ontario – Salary and car allowance	77	79
Contributions to employee benefit plans	30,482	28,002
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	443,000	443,000
Subtotal	473,579	471,101
Less:
Authorities to transfer or lapse:
Vote 5 – Government contingencies	(750,000)	(750,000)
Vote 10 – Government-wide initiatives	(2,093)	(3,193)
Vote 15 – Compensation adjustments	(10,656)	0
Vote 25 – Operating budget carry forward	0	(1,200,000)
Vote 30 – Paylist requirements	(726,134)	(600,000)
Vote 33 – Capital budget carry forward	(219,656)	(600,000)
Subtotal	(1,708,539)	(3,153,193)
Forecasted authorities available	3,003,292	2,946,654

The 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.

6. Accounts Payable and Accrued Liabilities

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

Accounts Payable and Accrued Liabilities

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Accounts payable to other government departments and agencies	756,335	754,319
Accounts payable to external parties	10,265	9,830
Subtotal	766,600	764,149
Accrued liabilities	122,922	123,094
Total accounts payable and accrued liabilities	889,522	887,243

Accounts payable to other government departments and agencies, for both years, includes amounts totalling $443 million required to reduce actuarial deficits related to the Public Service Pension Plan. The majority of the remaining accounts payable to other government departments and agencies are related to payables at year-end established as a result of employee benefit plans.

7. Employee Future Benefits

a) Pension benefits

The Secretariat's 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/Québec Pension Plan benefits and are indexed to inflation.

Employees and the Secretariat contribute to the cost of the pension plan. The forecast expenses for the employer's share are $21,764 thousand in 2012–13 and $19,688 thousand in 2013–14. The Secretariat funds the employer's contributions to the Public Service Pension Plan and Retirement Compensation Arrangement Accounts, including additional contributions in respect of actuarial deficiencies.

The Secretariat's financial reporting 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 its employees 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 presented in the following table:

Employee Future Benefits - Severance benefits

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Accrued benefit obligation – Beginning of year	24,377	23,796
Expense for the year	5,626	303
Benefits paid during the year	(6,207)	(11,186)
Accrued benefit obligation – End of year	23,796	12,913

As part of collective agreement negotiations with certain employee groups, the accumulation of severance benefits under the employee severance pay program ceased for these employees. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits on termination from the public service. These changes have been reflected in the calculation of the outstanding severance benefit obligation.

8. Accounts Receivable and Advances

The following table presents details of the Secretariat's accounts receivable and advances balances.

Accounts Receivable and Advances

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Receivables – Other government departments and agencies	273,281	271,523
Receivables – External parties	1,200	1,172
Advances to employees	71	72
Gross accounts receivable and advances	274,552	272,767
Accounts receivable held on behalf of government	(313)	(267)
Net accounts receivable and advances	274,239	272,500

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

9. Tangible Capital Assets

Categories	Cost					Accumulated amortization					Net book value
Capital asset class	Opening balance	Acqui-sitions	Transfer -In	Transfer -Out	Closing balance	Opening balance	Amorti-zation	Transfer -In	Transfer -Out	Closing balance	2013	2014
	(in thousands of dollars)
Machinery and equipment	165	0	0	0	165	77	18	0	0	95	70	53
Motor vehicles	120	0	31	(30)	121	94	27	11	(30)	102	19	21
Leasehold improvements	1,952	0	0	0	1,952	1,952	0	0	0	1,952	0	0
Computer hardware	10	0	0	0	10	10	0	0	0	10	0	0
Computer software	14,180	0	0	0	14,180	5,548	5,748	0	0	11,296	2,884	7
Total	16,427	0	31	(30)	16,428	7,681	5,793	11	(30)	13,455	2,973	81

10. 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 be reasonably estimated are summarized in the following table.

Contractual Obligations

	2015	2016	2017	Total
	(in thousands of dollars)
Public service health and dental care plans	40,743	43,723	30,253	114,719
Professional services	3,793	3,894	1,544	9,231
Equipment rentals	1,300	625	803	2,728
Total	45,836	48,242	32,600	126,678

11. Contingent Liabilities

Claims and litigations

Claims have been made against the Secretariat in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. Claims for which the outcome is not determinable and a reasonable estimate can be made by management total approximately $391 million. Some of these potential liabilities 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 is recorded in the financial statements. No accrual for these contingent liabilities has been made in these financial statements.

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 contributions to the public service health, dental and other employee insurance plans and payroll benefits through its centrally managed funds (refer to 12b) below). During the year, the Secretariat is forecasted to receive and provide common services, as disclosed in the next section.

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 and Departmental Net Financial Position in the following table.

Related-Party Transactions - Common services provided without charge by other government departments

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Accommodation	19,982	19,268
Legal services	3,145	3,139
Total	23,127	22,407

The government has centralized some of its administrative activities for efficiency, cost-effectiveness and economic delivery of 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 cost of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada, as well as services provided by Shared Services Canada related to e-mails, network and data centre, are not included in the Secretariat's Future-Oriented Statement of Operations and Departmental Net Financial Position.

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 $1,739,666 thousand in 2012–13 and $1,638,000 thousand in 2013–14.

c) Other transactions with related parties

Related-Party Transactions - Other transactions with related parties

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Expenses – Other government departments and agencies	24,116	24,462
Revenues – Other government departments and agencies	14,890	15,102

Expenses and revenues disclosed in (c) exclude common services provided without charge, which have already been disclosed in (a) and (b). The expenses are related to a variety of both goods and services and salary transactions with other departments and agencies. The revenues are mainly related to internal support services and the recovery of public service pension administration costs.

13. Segmented information

a) Main programs

Presentation by segment is based on the Secretariat's program alignment architecture and uses the same accounting policies that are described in the summary of significant accounting policies in Note 4. The following table presents the forecasted expenses and revenues for the main programs, by major categories of expenses and revenues.

Segmented information - Main programs

	Estimated Results 2013	GF & PSEP	MF	PM	EM	FM	IS	Planned Results 2014
	(in thousands of dollars)
Legend: GF and PSEP Government-Wide Funds and Public Service Employer Payments MF Management Frameworks PM People Management EM Expenditure Management FM Financial Management IS Internal Services
Transfer payment
Industry	200	0	0	0	0	0	0	0
Total transfer payment	200	0	0	0	0	0	0	0
Operating expenses:
Government-wide funds and public service employer payments	2,717,093	2,706,143	0	0	0	0	0	2,706,143
Salary and employee benefits	209,280	0	39,321	37,873	24,002	23,817	52,109	177,122
Professional and special services	65,347	0	10,972	10,568	6,698	6,646	14,518	49,402
Accommodation	19,982	0	4,279	4,122	2,612	2,592	5,662	19,267
Transportation and telecommunications	5,843	0	668	643	408	405	884	3,008
Machinery, equipment, parts and tools	6,934	0	1,170	1,127	714	709	1,548	5,268
Repairs and maintenance	2,295	0	221	212	134	134	292	993
Utilities, material and supplies	2,037	0	199	192	122	121	264	898
Information	770	0	93	90	57	56	123	419
Rentals	1,199	0	151	145	92	91	200	679
Amortization	5,793	0	0	4	2,871	9	38	2,922
Other subsidies and payments	3,998	0	570	549	348	345	754	2,566
Total Expenses	3,040,771	2,706,143	57,644	55,525	38,058	34,925	76,392	2,968,687
Revenues
Recovery of pension administration costs	8,426	0	0	8,393	0	0	0	8,393
Internal support services	6,209	0	0	0	0	0	6,709	6,709
Parking fees and other revenues	5,255	4,733	0	0	0	10	0	4,743
Revenues earned on behalf of government	(6,846)	(4,733)	0	(1,421)	0	0	0	(6,154)
Total Revenues	13,044	0	0	6,972	0	10	6,709	13,691
Net Cost of Operations	3,027,727	2,706,143	57,644	48,553	38,058	34,915	69,683	2,954,996

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

• Employer's share of contributions to the Public Service Death Benefit Account;
• Employer's share of Canada/Québec Pension Plan contributions and Employment Insurance premiums;
• Employer's share of health, disability, and life insurance premiums and related Québec sales tax;
• Employer's share of the Québec Parental Insurance Plan premium;
• Claims and related costs under the Public Service Dental Care Plan and the Pensioners' Dental Services Plan;
• Provincial payroll taxes in respect of employees who work in Quebec, Ontario, Manitoba and Newfoundland and Labrador. The payroll tax is levied on employers in each of the provinces to help fund the respective health plans; 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/Québec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments, agencies and all revolving funds, based on a percentage of salaries and wages incurred.

The following table presents a breakdown by major category.

Segmented information - Government-wide funds and public service employer payments

	Estimated Results 2013	Planned Results 2014
	(in thousands of dollars)
Expenses:
Public Service Pension Plan and Retirement Compensation Arrangement contributions (statutory)	2,565,116	2,468,373
Public Service Health Care Plan premiums (Vote 20)	1,074,632	1,105,312
Canada/Québec Pension Plan contributions (statutory)	654,970	676,161
Provincial payroll taxes (Vote 20)	617,960	537,501
Group disability and life insurance premiums (Vote 20)	510,024	539,685
Public Service Pension Plan and Retirement Compensation in respect of actuarial deficits (statutory)	443,000	443,000
Employment Insurance premiums (statutory)	291,097	346,857
Public Service Dental Care Plan claims (Vote 20)	283,470	287,816
Pensioners' Dental Services Plan claims (Vote 20)	149,390	160,010
Québec Parental Insurance Plan premiums (Vote 20)	38,014	37,765
Provincial health insurance plan premiums (Vote 20)	35,611	35,645
Public Service Death Benefit Account contributions (statutory)	14,949	19,309
Operating expenses (Vote 20)	4,466	3,963
Pension and similar payments to former government employees (Vote 20)	4,001	4,261
Employment Insurance premiums reduction (Vote 20)	1,722	2,165
Total expenses	6,688,422	6,667,823
Recoveries:
Employer's contributions to government employee benefit plans recovered from government departments and agencies (statutory)	3,526,132	3,510,699
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)	190,840	183,819
Employees' contributions to the Public Service Health Care Plan recovered from government departments and agencies (Vote 20)	178,170	188,638
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)	76,187	78,524
Total recoveries	3,971,329	3,961,680
Net expenses	2,717,093	2,706,143

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