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The financial highlights presented within this Departmental Performance Report are intended to serve as a general overview of HRSDC's financial position and operations. The Department's unaudited consolidated financial statements are available online at www.hrsdc.gc.ca/eng/publications_resources/dpr/dpr/
financial_statement/dpr_1011_financial_e.shtml.
HRSDC is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to HRSDC 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 Consolidated Statement of Operations and the Consolidated Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. A reconciliation between authorities used and the net cost of operations is set out in Note 3 of the Department's consolidated financial statements.
These consolidated financial statements include the transactions of the Employment Insurance Operating (EIO) Account, a sub-entity under the control of HRSDC. The accounts of this sub-entity have been consolidated with those of HRSDC and all inter-organizational balances and transactions have been eliminated. The balance of the Canada Pension Plan (CPP) assets on deposit in the Consolidated Revenue Fund and the actuarial value of the Government Annuities Account (GAA) are presented as liabilities in the departmental statements.
The purpose of this section is to explain the Department's 2010-2011 financial highlights, based on the Department's consolidated financial statements. The charts below illustrate the ending balances, as of March 31, for each major financial statement grouping, along with the corresponding change from the previous fiscal year. In summary, between 2009-2010 and 2010-2011, the Department's assets increased by 0.5%, its liabilities decreased by 10.4%, its expenses decreased by 0.2%, and its revenues increased by 4.7%. Below the charts are explanations for the variances in each major grouping based on the most significant factors that affected each grouping during the fiscal year.
% Change | 2011 | 2010 | |
---|---|---|---|
Total Assets | 0.5% | 14,405.7 | 14,341.1 |
Total Liabilities | -10.4% | 2,487.6 | 2,777.4 |
Total Equity | 3.1% | 11,918.1 | 11,563.7 |
Assets by Type
Text description of Assets by Type
Total assets amounted to $14,405.7 million as at March 31, 2011, an increase of $64.6 million (0.5%) over the previous year's total assets of $14,341.1 million. The increase in assets is mainly due to an increase of $695.0 million in Canada Student Loans caused by an excess of new loans disbursed over the total amount of repayments. This increase was partially offset by a decrease of $328.8 million in the amount due from the Consolidated Revenue Fund and a decrease of $273.8 million in the Accounts receivable and advances caused by the recovery, in 2010-2011, of the 2009-2010 Quebec Parental Insurance Plan account receivable.
Liabilities by Type
Text description of Liabilities by Type
Total liabilities amounted to $2,487.6 million as at March 31, 2011, a decrease of $289.8 million (10.4%) over the previous year's total liabilities of $2,777.4 million. The decrease in liabilities is mainly due to a decrease in Accounts payable and accrued liabilities caused by a one time account payable in 2009-2010 with respect to interest earned on the EI Account which had been repealed in 2009-2010, and a decrease in the amount due to CPP caused by the timing of the cash on deposit to the Receiver General for Canada.
% Change | 2011 | 2010 | |
---|---|---|---|
Expenses | |||
Transfer payments | (-0.5%) | 62,124.6 | 62,466.0 |
Operating expenses | (4.9%) | 3,783.0 | 3,605.1 |
Total expenses | (-0.2%) | 65,907.6 | 66,071.1 |
Revenues | |||
EI revenues | (4.3%) | 17,919.9 | 17,177.0 |
Other | (13.4%) | 817.6 | 720.9 |
Total revenues | 4.7% | 18,737.5 | 17,897.9 |
Net Cost of Operations | (-2.1%) | 47,170.1 | 48,173.2 |
Expenses by Major Program Activity
Text description of Expenses by Major Program Activity
Total expenses for the 2010-2011 year amounted to $65,907.6 million, a decrease of $163.5 million (0.2% ) over the previous year's total expenses of $66,071.1 million. The decrease in total expenses is mostly attributable to:
Revenues by Major Program Activity
Text description of Revenues by Major Program Activity
Total revenues for the 2010-2011 year amounted to $18,737.5 million, an increase of $839.6 million (4.7%) over the previous year's total revenues of $17,897.9 million. The majority of this increase can be explained by an increase in Employment Insurance Premiums related to the economic recovery and its impact on the employment that went up by an average of 1.89% over 2010-2011 and to the increase in the maximum insurable earnings.
All electronic supplementary information tables found in the 2010-2011 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat's website at www.tbs-sct.gc.ca/dpr-rmr/2010-2011/index-eng.asp
Specified Purpose Accounts consist of special categories of revenues and expenditures. They report transactions of certain accounts where enabling legislation requires that revenues be earmarked and that related payments and expenditures be charged against such revenues. The transactions of these accounts are to be accounted for separately.
HRSDC is responsible for the stewardship of five such accounts:
The EI Operating Account is a consolidated Specified Purpose Account and is included in the financial reporting of the Government of Canada. Consolidated Specified Purpose Accounts are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties but, in essence, constitute government revenues and expenditures.
The CPP is a Specified Purpose Account but is not consolidated as part of the Government of Canada financial statements. It is under joint control of the government and the participating provinces. As administrator, the government's authority to spend is limited to the balance of funds available in the Plan.
The Government Annuities Account is not a consolidated Specified Purpose Account. It was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit or surplus charged or credited to the Consolidated Revenue Fund.
The Civil Service Insurance Fund is not a consolidated Specified Purpose Account. It was established by the Civil Service Insurance Act. Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, the amount of actuarial deficits is transferred from the Consolidated Revenue Fund to the Civil Service Insurance Account in order to balance the assets and liabilities of the program.
The Canada Millennium Scholarship Foundation Excellence Awards Fund is not a consolidated Specified Purpose Account. It was established in order for HRSDC to administer the remaining Excellence Awards payments to eligible students upon the dissolution of the Canada Millennium Scholarship Foundation, which was ending after its ten-year mandate. HRSDC will administer the remaining Excellence Awards disbursements from January 1, 2010 until December 31, 2013. After this date, HRSDC will transfer any funds remaining in the account to the Consolidated Revenue Fund.
The following information updates forecasted data on the Employment Insurance Operating Account and the Canada Pension Plan that the Department provided in the 2010-2011 Report on Plans and Priorities. That report presented multi year financial data and general information. Additional information about performance and year-end data is available at the Internet addresses provided in this section.
Employment Insurance Operating Account
The table below summarizes the financial results for the EI Operating Account from 2009-2010 to 2010-2011.
(millions of dollars) | Actual | |
---|---|---|
2009-2010 | 2010-2011 | |
Expenditures | ||
Benefits | 21,586 | 19,850 |
Administrative Costs | 2,031 | 1,916 |
Doubtful Accountsb | 50 | 42 |
Sub-Total | 23,667 | 21,808 |
EI Premiums and Penalties | ||
Premiums | 17,121 | 17,862 |
Penalties | 42 | 46 |
Interest (Overdue Accounts Receivable) | 13 | 11 |
Sub-Total | 17,175 | 17,919 |
Government Funding (Budget 2009) | 1,522 | 1,428 |
Annual (Deficit) Surplus | (4,970) | (2,462) |
Cumulative (Deficit) Surplus | (4,936)c | (7,397) |
Premium Rate (% of Insurable Earnings) |
2010 | 2011 |
Employee | 1.73% | 1.78% |
Employer | 2.42% | 2.49% |
a The EI Operating Account is a consolidated Specified Purpose Account and is included in the financial reporting of the Government of Canada. Consolidated Specified Purpose Accounts are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties
but, in essence, constitute government revenues and expenditures. b Represents write-offs and estimates of uncollectible account receivables for benefit overpayments and penalties imposed. c The cumulative deficit as of March 31, 2010, includes the EI Operating Account surplus of $34M accumulated from January 1, 2009 to March 31, 2009. Note: Totals may not add due to rounding. |
The new EI Operating Account records all EI-related credits and charges since January 1, 2009, the date on which it was established in the accounts of Canada. The Canada Employment Insurance Financing Board (CEIFB) was created to improve the governance and management of Employment Insurance financing. Starting in 2011, the Board has been responsible for setting the EI premium rate based on a new rate-setting mechanism. This mechanism is designed to ensure that Employment Insurance revenues and expenditures break even over time.
Revenues from EI premiums increased in 2010-2011 due to higher insurable earnings resulting from an increase in employment. EI benefit payments decreased compared to 2009-2010 due to a decrease in the number of beneficiaries and in the number of weeks of benefits paid. It is important to note that $1.4 billion in additional funding from the Consolidated Revenue Fund was provided to offset the additional expenditures associated with the temporary EI measures which were introduced in Budget 2009. Expenditures, however, still exceeded total revenues by $2.5 billion.
More detailed information is reported in the 2010-2011 audited EI Operating Account financial statements that are included in the 2011 Public Accounts of Canada, Volume 1, Section 4.13 HRSDC also offers information on Employment Insurance on its website.14 It provides information on the authority, objectives and details of the program as well as links to Actuarial Reports and the Employment Insurance Commission's annual Monitoring and Assessment Reports.
Canada Pension Plan
The following table summarizes the financial results for the Canada Pension Plan (CPP) from 2008-2009 to 2010-2011.
More information relating to 2010-2011 is reported in the Canada Pension Plan financial statements which can be found in the 2011 Public Accounts of Canada, Volume 1, Section 6.
(millions of dollars) | Actual | Forecast | Actual | |
---|---|---|---|---|
2008-2009 | 2009-2010 | 2010-2011 | ||
Revenue | ||||
Contributions | 36,506 | 36,276 | 36,862 | 37,069 |
Investment Income | ||||
Canada Pension Plan | 6 | 1 | 1 | 2 |
CPP Investment Boarda | (23,576) | 16,218 | - | 15,558 |
Total Investment Income | (23,570) | 16,219 | 1 | 15,560 |
Total Revenue | 12,936 | 52,495 | 36,863 | 52,629 |
Expenditures | ||||
Benefit Payments | 29,005 | 30,363 | 31,625 | 31,598 |
Administrative Expensesb | 694 | 734 | 806 | 850 |
Total Expenditures | 29,699 | 31,097 | 32,431 | 32,448 |
Increase / Decrease | (16,763) | 21,398 | 4,432 | 20,181 |
Year-end Balance | 110,022 | 131,420 | 135,852 | 151,601 |
a CPP Investment Board actual amounts are based on their audited financial statements. The CPP Investment Board invests mainly in equities and fixed income securities. The investment income is composed of realized gains and losses from investments, unrealized gains and losses on investments held at the end of the period (change in fair
value) and foreign exchange gains and losses. For 2010 – 2011, there was a net investment gain. b Administrative expenses include CPP administrative expenses as well as CPP Investment Board administrative expenses. Note: All amounts from this table for 2008–2009 and 2009–2010 are the consolidated amounts found in the audited CPP annual financial statements. |
Government Annuities Account
The table below summarizes the financial results for the Government Annuities Account from 2008-2009 to 2010-2011. Source of the figures is the Report of the Chief Actuary on the Government Annuities as at March 31, 2011.
(millions of dollars) | Actual | ||
---|---|---|---|
2008-2009 | 2009-2010 | 2010-2011 | |
Actuarial Liabilities – Balance at Beginning of Year |
292.9 | 267.2 | 243.5 |
Income | 19.4 | 17.5 | 15.8 |
Payments and Other Charges | 42.0 | 38.7 | 35.8 |
Excess of Payments and Other Charges Over Income for the Year | 22.6 | 21.2 | 20.0 |
Actuarial Surplus | 3.1 | 2.5 | 2.2 |
Actuarial Liabilities – Balance at End of the Year |
267.2 | 243.5 | 221.3 |
The annual report and financial statements for Government Annuities are available in the 2011 Public Accounts of Canada, Volume 1, Section 6.15
Civil Service Insurance Fund
The table below summarizes the financial results for the Civil Service Insurance Fund from 2008-2009 to 2010-2011.
(millions of dollars) | Actual | ||
---|---|---|---|
2008-2009 | 2009-2010 | 2010-2011 | |
Opening Balance | 5.9 | 5.6 | 5.5 |
Receipts and Other Credits | 0.0 | 0.1 | 0.0 |
Payments and Other Charges | 0.3 | 0.3 | 0.3 |
Excess of Payments and Other Charges Over Income for the Year | 0.3 | 0.2 | 0.3 |
Balance at End of the Year | 5.6 | 5.5 | 5.2 |
Note: Totals may not add due to rounding. |
The financial data for the Civil Service Insurance Fund are available in the 2011 Public Accounts of Canada, Volume 1, Section 6.16
Canada Millennium Scholarship Foundation Excellence Awards Fund
In accordance with Budget Implementation Act 2008, the Canada Millennium Scholarship Foundation has ended after its ten-year mandate. This Specified Purpose Account was established by way of an agreement between the Canada Millennium Scholarship Foundation and Human Resources and Skills Development Canada (HRSDC) in order for HRSDC to administer the remaining Excellence Awards payments to eligible students upon the dissolution of the Canada Millennium Scholarship Foundation. The transfer of funds also includes the costs of administering this program on behalf of the Canada Millennium Scholarship Foundation.
HRSDC will administer the remaining Excellence Awards disbursements from January 1, 2010 until December 31, 2013. After this date, HRSDC will transfer any funds remaining in the account to the Consolidated Revenue Fund.
(millions of dollars) | Actual | ||
---|---|---|---|
2008-2009 | 2009-2010 | 2010-2011 | |
Opening Balance | - | - | 14.4 |
Income and other creditsa | - | 14.8 | - |
Payments and other charges | - | 0.4 | 7.1 |
Excess of payments and other charges over income for the year | - | 14.4 | 7.1 |
Closing Balance | - | 14.4 | 7.3 |
a Receipts and other credits include a one-time payment of $14.8 million in 2009–2010 from the Canada Millennium Scholarship Foundation to the Specified Purpose Account for the purpose of administering remaining Excellence Awards between January 1, 2010 and December 31, 2013. |
Old Age Security
The Old Age Security program is one of the cornerstones of Canada's retirement income system. Benefits include the basic Old Age Security pension, the Guaranteed Income Supplement and the Allowance. The Old Age Security program is financed from Government of Canada general tax revenues.
The following tables present information on monthly benefits, beneficiaries and payments by province or territory.
(millions of dollars) Fiscal Year 2010–2011 |
Basic Pension | Income Supplement | Allowance | |||
---|---|---|---|---|---|---|
Single | Married | Regular | Survivor | Increase | ||
Monthly benefit by fiscal year | ||||||
2010-2011 Actuals | ||||||
January 1, 2011 | 524.23 | 661.69 | 436.95 | 961.18 | 1,065.45 | 0.5% |
October 1, 2010 | 521.62 | 658.40 | 434.78 | 956.40 | 1,060.15 | 0.6% |
July 1, 2010 | 518.51 | 654.47 | 432.19 | 950.70 | 1,053.83 | 0.3% |
April 1, 2010 | 516.96 | 652.51 | 430.90 | 947.86 | 1,050.68 | 0.0% |
2010-2011 Estimates | ||||||
January 1, 2011 | 522.67 | 659.71 | 435.66 | 958.33 | 1,062.27 | 0.5% |
October 1, 2010 | 520.07 | 656.43 | 433.49 | 953.56 | 1,056.99 | 0.2% |
July 1, 2010 | 519.03 | 655.12 | 432.62 | 951.65 | 1,054.88 | 0.3% |
April 1, 2010 | 517.48 | 653.16 | 431.33 | 948.81 | 1,051.73 | 0.1% |
2009-2010 Actuals | ||||||
January 1, 2010 | 516.96 | 652.51 | 430.90 | 947.86 | 1,050.68 | 0.0% |
October 1, 2009 | 516.96 | 652.51 | 430.90 | 947.86 | 1,050.68 | 0.0% |
July 1, 2009 | 516.96 | 652.51 | 430.90 | 947.86 | 1,050.68 | 0.0% |
April 1, 2009 | 516.96 | 652.51 | 430.90 | 947.86 | 1,050.68 | 0.0% |
Maximum amount paid (annual benefits) |
||||||
2010-2011 Actuals | 6,243.96 | 7,881.21 | 5,204.46 | 11,448.42 | 12,690.33 | 0.7% |
2010-2011 Estimates | 6,237.75 | 7,873.26 | 5,199.30 | 11,437.05 | 12,677.61 | 0.6% |
2009-2010 Actuals | 6,203.52 | 7,830.12 | 5,170.80 | 11,374.32 | 12,608.16 | 3.4% |
Province or Territory |
March 2010 | March 2011 | ||||||
---|---|---|---|---|---|---|---|---|
Old Age Security (OAS) Pension | Guaranteed Income Supplement (GIS) | Allowance | GIS as % of OAS | Old Age Security (OAS) Pension | Guaranteed Income Supplement (GIS) | Allowance | GIS as % of OAS | |
Newfoundland and Labrador | 77,362 | 46,025 | 4,376 | 59.49 | 80,628 | 46,908 | 4,142 | 58.18 |
Prince Edward Island | 21,189 | 9,369 | 585 | 44.22 | 21,846 | 9,548 | 591 | 43.71 |
Nova Scotia | 145,682 | 60,206 | 4,037 | 41.33 | 149,468 | 60,178 | 3,925 | 40.26 |
New Brunswick | 115,916 | 55,074 | 4,021 | 47.51 | 119,180 | 56,195 | 4,083 | 47.15 |
Quebec | 1,181,774 | 533,717 | 30,246 | 45.16 | 1,220,406 | 542,329 | 29,931 | 44.44 |
Ontario | 1,737,000 | 493,407 | 27,070 | 28.41 | 1,782,123 | 510,303 | 27,500 | 28.63 |
Manitoba | 166,245 | 56,934 | 3,101 | 34.25 | 168,977 | 56,141 | 2,839 | 33.22 |
Saskatchewan | 148,590 | 53,167 | 2,879 | 35.78 | 149,953 | 52,321 | 2,732 | 34.89 |
Alberta | 375,679 | 116,782 | 5,633 | 31.09 | 386,155 | 117,700 | 5,564 | 30.48 |
British Columbia | 622,655 | 200,248 | 11,501 | 32.16 | 641,078 | 207,171 | 12,086 | 32.32 |
Yukon | 2,828 | 859 | 42 | 30.37 | 2,971 | 878 | 44 | 29.55 |
Northwest Territoriesa | 3,209 | 1,628 | 120 | 50.73 | 3,323 | 1,618 | 120 | 48.69 |
Internationalb | 93,755 | 8,371 | 57 | 8.93 | 95,988 | 8,128 | 52 | 8.47 |
Total | 4,691,884 | 1,635,787 | 93,668 | 34.86 | 4,822,096 | 1,669,418 | 93,609 | 34.62 |
a Data for Nunavut are included. b Persons receiving Canadian OAS benefits under International Social Security Agreements. |
(dollars) Province or Territory |
Old Age Security (OAS) Pension |
Guaranteed Income Supplement (GIS) |
Allowance | Total |
---|---|---|---|---|
Newfoundland and Labrador | 492,780,492 | 197,757,515 | 25,334,750 | 715,872,757 |
Prince Edward Island | 133,928,462 | 39,952,488 | 2,794,057 | 176,675,007 |
Nova Scotia | 919,232,618 | 240,912,026 | 20,997,306 | 1,181,141,950 |
New Brunswick | 733,504,277 | 233,757,005 | 22,981,693 | 990,242,975 |
Quebec | 7,410,989,197 | 2,376,164,494 | 156,871,701 | 9,944,025,392 |
Ontario | 10,434,004,245 | 2,626,277,194 | 171,102,289 | 13,231,383,728 |
Manitoba | 1,034,276,730 | 241,240,780 | 17,017,056 | 1,292,534,566 |
Saskatchewan | 931,479,891 | 220,894,028 | 16,774,124 | 1,169,148,043 |
Alberta | 2,300,996,452 | 564,202,349 | 33,224,535 | 2,898,423,336 |
British Columbia | 3,705,685,475 | 1,065,807,976 | 71,836,846 | 4,843,330,297 |
Yukon | 18,017,009 | 4,019,691 | 201,168 | 22,237,868 |
Northwest Territoriesa | 20,338,303 | 8,698,951 | 951,001 | 29,988,255 |
Internationalb | 139,871,576 | 81,450,263 | 424,354 | 221,746,193 |
Total | 28,275,104,727 | 7,901,134,760 | 540,510,880 | 36,716,750,367 |
Recovery tax portion of OAS | (1,061,615,237) | - | - | (1,061,615,237) |
Total including recovery tax | 27,213,489,490 | 7,901,134,760 | 540,510,880 | 35,655,135,130 |
aData for Nunavut are included. bPersons receiving Canadian OAS benefits under International Social Security Agreements. |
Actual | 2010-2011 | |||
---|---|---|---|---|
(millions of dollars) | 2008-2009 | 2009-2010 | Planned | Actual |
Revenues | ||||
Interest Revenue on Direct Loans | 472.8 | 369.8 | 434.6 | 444.8 |
Recoveries on Guaranteed Loans | 38.5 | 27.4 | 18.5 | 23.9 |
Recoveries on Put-Back Loans (RS) | 13.1 | 11.0 | 7.7 | 11.5 |
Total Loan Revenue | 524.4 | 408.2 | 460.8 | 480.2 |
Expenses | ||||
Transfer payment | ||||
Canada Study Grants, Canada Access Grants and Canada Student Grants Program | 143.2 | 533.7 | 557.2 | 620.7 |
Loan Administration | ||||
Collection Costs (All regimes)a | 10.7 | 5.2 | 0.0 | 2.5 |
Program Delivery Costs (DL) | 76.0 | 61.7 | 63.4 | 66.0 |
Risk Premium to Financial Institutions (RS) | 0.7 | 0.6 | 0.5 | 0.3 |
Put-Back to Financial Institutions (RS) | 3.8 | 3.6 | 3.1 | 2.3 |
Administrative Fees to Provinces and Territories and SIF (DL ) | 14.7 | 19.3 | 25.5 | 26.7 |
Total Loan Administration Expenses | 105.9 | 90.4 | 92.5 | 97.8 |
Cost of Government Benefits to Students | ||||
In-Study Interest Borrowing Expense (Class A - DL)b | 166.9 | 177.4 | 168.0 | 173.3 |
In Repayment Interest Borrowing Expense (Class B - DL)b | 160.7 | 180.0 | 188.4 | 182.9 |
In-Study Interest Subsidy (RS & GL) | 4.0 | 1.4 | 0.8 | 1.2 |
Repayment Assistance Programsc | 93.2 | 74.9 | 96.3 | 88.9 |
Claims Paid & Loans Forgiven (All regimes) | 23.2 | 22.5 | 21.9 | 12.5 |
Total Cost of Govt Benefits to Students | 448.0 | 456.2 | 475.4 | 458.8 |
Bad Debt Expensed | ||||
Debt Reduction in Repayment Expense (DL) | 53.2 | 133.4 | 20.0 | 40.7 |
Bad Debt Expense (DL) | 293.6 | 129.1 | 342.4 | 323.6 |
Total Bad Debt Expense | 346.8 | 262.5 | 362.4 | 364.3 |
Total Loan Expenses | 1,043.9 | 1,342.8 | 1,487.53 | 1,541.6 |
Net Operating Results | 519.5 | 934.6 | 1,026.7 | 1,061.4 |
Alternative Payments to Non-Participating Provinces (DL)e | 111.0 | 223.1 | 244.0 | 300.1 |
Final Net Operating Results | 630.5 | 1,157.7 | 1,270.7 | 1,361.5 |
(DL) = Direct Loans a. These costs are related to collection activities performed by the Canada Revenue Agency. Figures for 2008-2009 have been adjusted by CRA and the new collection costs have been reflected. |
For further information about the Consolidated Report on Student Loans, refer to http://www.hrsdc-rhdcc.gc.ca/eng/publications_resources/dpr/dpr/index.shtml
nc-spr-psr-cpa-pim-gd@hrsdc-rhdcc.gc.ca