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Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011, and for all information contained in these statements rests with the management of the Treasury Board of Canada Secretariat (the Secretariat). These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector.
Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Secretariat's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Secretariat's Departmental Performance Report is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.
Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Secretariat; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.
An assessment for the year ended March 31, 2011, was completed in accordance with the Policy on Internal Control, and the results and action plans are summarized in the Annex.
The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to assess key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The system of internal control is monitored by Internal Audit, which conducts periodic audits and reviews of different areas of the Secretariat's operations. In addition, the Chief Audit Executive has free access to the Audit Committee, which oversees and provides advice to management on its responsibilities for maintaining adequate control systems and the quality of financial reporting. The Committee undertakes a review of the financial statements, including all significant accounting estimates and judgments therein, and advises the Secretariat on any apparent material concerns.
The financial statements of the Secretariat have not been audited.
2011 | 2010 Restated (Note 12) |
|
---|---|---|
The accompanying notes form an integral part of these financial statements. |
||
Assets | ||
Financial assets | ||
Due from the Consolidated Revenue Fund | 128,815 | 230,748 |
Accounts receivable and advances (Note 4) | 353,385 | 659,454 |
Non-financial assets | ||
Prepaid expenses | 58 | 64 |
Tangible capital assets (Note 5) | 15,242 | 14,722 |
Total Assets | 497,500 | 904,988 |
Liabilities and Equity of Canada | ||
Liabilities | ||
Accounts payable and accrued liabilities (Note 6) | 530,343 | 566,775 |
Vacation pay and compensatory leave | 9,093 | 10,137 |
Employee future benefits (Note 7) | 39,030 | 36,126 |
Total liabilities | 578,466 | 613,038 |
Equity of Canada | (80,966) | 291,950 |
Total Liabilities and Equity | 497,500 | 904,988 |
2011 Planned Results* |
2011 | 2010 | |
---|---|---|---|
The accompanying notes form an integral part of these financial statements. * Planned results were presented in the 2010–11 future-oriented financial statements and included in the department's 2010–11 Report on Plans and Priorities (RPP). |
|||
Expenses | |||
Government-Wide Funds and Public Service Employer Payments | 2,231,393 | 1,959,769 | 2,067,613 |
Management Frameworks | 65,534 | 71,643 | 72,026 |
People Management | 62,071 | 74,002 | 70,793 |
Expenditure Management | 32,912 | 33,540 | 35,836 |
Financial Management | 30,514 | 31,452 | 27,104 |
Internal Services | 97,869 | 102,782 | 94,214 |
Total Expenses | 2,520,293 | 2,273,188 | 2,367,586 |
Revenues | |||
Government-Wide Funds and Public Service Employer Payments | 11,909 | 10,714 | 11,667 |
People Management | 7,845 | 5,592 | 4,772 |
Internal Services | 0 | 17 | 8 |
Total Revenues | 19,754 | 16,323 | 16,447 |
Net Cost of Operations | 2,500,539 | 2,256,865 | 2,351,139 |
2011 | 2010 Restated (Note 12) | |
---|---|---|
|
||
Equity of Canada, beginning of year | 291,950 | (43,874) |
Net cost of operations | (2,256,865) | (2,351,139) |
Net cash provided by government | 1,960,624 | 2,640,093 |
Change in due from the Consolidated Revenue Fund | (101,933) | 43,148 |
Services provided without charge by other government departments (Note 10) | 25,129 | 23,839 |
Transfer of assets and liabilities from other government departments (Note 5) | 129 | (20,117) |
Equity of Canada, end of year | (80,966) | 291,950 |
2011 | 2010 | |
---|---|---|
|
||
Operating activities | ||
Net cost of operations | 2,256,865 | 2,351,139 |
Non-cash items: | ||
Amortization of tangible capital assets | (3,302) | (3,341) |
Gain (loss) on disposal of tangible capital asset | 0 | 1 |
Services provided without charge by other government departments (Note 10) | (25,129) | (23,839) |
Variations in Statement of Financial Position: | ||
Increase (decrease) in accounts receivable and advances | (306,069) | 429,405 |
Increase (decrease) in prepaid expenses | (6) | 64 |
Decrease (increase) in accounts payable and accrued liabilities | 36,432 | (127,561) |
Decrease (increase) in vacation pay and compensatory leave | 1,044 | (3,590) |
Decrease (increase) in employee severance benefits | (2,904) | (7,238) |
Transferred from Public Service Human Resources Management Agency of Canada, effective April 1, 2009 |
0 | 20,117 |
Cash used in operating activities | 1,956,931 | 2,635,157 |
Capital investing activities | ||
Acquisitions of tangible capital assets | 3,693 | 1,263 |
Transfer of capital assets from Department of Finance Canada and Public Service Human Resources Management Agency of Canada | 0 | 3,687 |
Proceeds from disposition of tangible capital assets | 0 | (14) |
Cash used in capital investing activities | 3,693 | 4,936 |
Net cash provided by the Government of Canada | 1,960,624 | 2,640,093 |
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 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 six programs compared to four programs in 2009–10. Therefore, figures for 2009–10 in the Statement of Operations are redistributed for comparison purposes.
The Program activities are described as follows:
The Government-Wide Funds and Public Service Employer Payments program activity accounts for funds that are held centrally by the Secretariat to supplement other appropriations, and from which payments and receipts are made on behalf of other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Treasury Board as employer of the core public administration.
In support of the Treasury Board's role as management board, the Secretariat provides the framework for the management of government operations. It does so by developing specific policies, regulations, directives, and guidelines that, once approved by the Treasury Board, provide the parameters within which deputy heads manage their departments. The Secretariat also helps build understanding and capacity by reaching out to the different communities within departments and agencies (e.g., finance, human resources) that support deputy heads in implementing Treasury Board policies.
The Treasury Board's people management role is supported by the Secretariat's People Management program activity. The Secretariat provides analysis and recommendations to 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 activity also includes the Secretariat's responsibilities for overseeing collective bargaining, labour relations, and pension and benefits plans.
Of all the Treasury Board's roles, the budget office is probably the best known. It is supported by two program activities: Expenditure Management and Financial Management. Through the Expenditure Management program activity, the government balances its books each year. The Secretariat provides analysis and support to the President of the Treasury Board to report to Parliament, first on the funding estimated for government operations in a specific year and then on the amounts actually expended. The Expenditure Management program activity also includes the Secretariat's responsibility for managing public sector compensation (i.e., the costs of pay and benefits), as well as its role in reviewing, analyzing, and challenging departmental spending proposals to ensure a focus on results and values for Canadians.
The Financial Management program activity is the other aspect of the budget office function. Through this program activity, the Secretariat develops policies and guidance to ensure that the financial management community across government has the right direction to carry out its financial responsibilities. The quality of financial management across departments is important for maintaining the accuracy and integrity of the government's financial records and accounts. This program activity also includes the Secretariat's efforts to build capacity within the financial and audit communities, as well as its audit responsibilities.
The Secretariat must implement Treasury Board policies to ensure the smooth running of its internal operations. Efforts in this area are captured in the Internal Services program activity. These include support functions such as communications, financial and human resources management, real property, information technology, and procurement. These services support all the Secretariat's other program activities.
These financial statements have been prepared in accordance with the following Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
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 Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned result amounts in the Statement of Operations are the amounts reported in the future-oriented financial statements included in the 2010–11 Report on Plans and Priorities.
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 of the government.
Amounts due from/to the Consolidated Revenue Funds (CRFs) 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 appropriations to discharge its liabilities.
Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenue takes place.
Expenses are recorded on the accrual basis:
Pension and other employee benefits:Eligible public service employees participate in the Public Service Pension Plan, a multi-employer pension plan sponsored by the Government of Canada. In its role as employer for the public service, employer contributions to the 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 they 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 in respect of its own employees' participation in the 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 to administer and/or fund 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 employee future 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 actuarial and investment risks inherent to these defined benefit plans as the plans' sponsor.
Severance benefits: Employees 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 is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.
Accounts and loans receivables are stated at the lower of cost and net recoverable value; a valuation allowance would be recorded for receivables where recovery is considered uncertain.
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 that a reasonable estimate of the loss can be made, an estimated liability is accrued, and an expense is 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.
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 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.
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically, and as adjustments become necessary, they are recorded in the financial statements in the year they become known.
The Secretariat receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through parliamentary authorities in a prior, current or future year. 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:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Net cost of operations | 2,256,865 | 2,351,139 |
Adjustments for items affecting net cost of operations but not affecting authorities: |
||
Amortization of tangible capital assets | (3,302) | (3,341) |
Services provided without charge by other government departments | (25,129) | (23,839) |
Decrease (increase) in vacation pay and compensatory leave | 1,044 | (3,590) |
(Increase) in employee future benefits | (2,904) | (7,238) |
Refund of prior years' expenditures | 10,711 | 1,092 |
Revenue not available for spending | 11,746 | 12,534 |
Other | 1,634 | 12,946 |
Subtotal | (6,200) | (11,436) |
Adjustments for items not affecting net cost of operations but affecting authorities: |
||
Acquisitions of tangible capital assets | 3,693 | 1,263 |
Advances | (378) | 591 |
Subtotal | 3,315 | 1,854 |
Current year authorities used | 2,253,980 | 2,341,557 |
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Authorities provided | ||
Vote 1—Operating expenditures | 262,656 | 263,987 |
Vote 5—Government contingencies | 230,668 | 712,117 |
Vote 10—Government-wide initiatives | 6,563 | 7,511 |
Vote 20—Public service insurance | 2,223,794 | 2,164,302 |
Vote 25—Operating budget carry forward | 128,041 | 481,554 |
Vote 30—Pay list requirements | 175,324 | 4,543 |
Vote 35—Budget implementation initiatives | 0 | 883,489 |
Subtotal | 3,027,046 | 4,517,503 |
Statutory authorities: | ||
Contributions to employee benefit plans | 30,466 | 31,286 |
Unallocated employer contributions made under the Public Service Superannuation Act and other retirement acts, and the Employment Insurance Act | 6,200 | 6,471 |
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act | (470) | (517) |
President of the Treasury Board - salary and car allowance | 78 | 78 |
Spending of proceeds from the disposal of surplus crown assets | 1 | 24 |
Subtotal | 36,275 | 37,342 |
Less | ||
Lapsed authorities: | ||
Vote 1—Operating expenditures | (7,697) | (21,901) |
Vote 5—Government contingencies | (230,668) | (712,117) |
Vote 10—Government-wide initiatives | (6,563) | (7,511) |
Vote 20—Public service insurance | (261,047) | (102,152) |
Vote 25—Operating budget carry forward | (128,041) | (481,554) |
Vote 30—Pay list requirements | (175,324) | (4,543) |
Vote 35—Budget implementation initiatives | 0 | (883,489) |
Spending of proceeds from the disposal of surplus crown assets | (1) | (21) |
Sub Total | (809,341) | (2,213,288) |
Current year authorities used | 2,253,980 | 2,341,557 |
The following table presents details of the Secretariat accounts receivable and advance balances:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Receivables from other government departments and agencies | 350,669 | 657,819 |
Advances to external parties | 639 | 1,054 |
Receivables from external parties | 1,994 | 473 |
Advances to employees | 78 | 105 |
Deposits in transit to the Receiver General | 5 | 3 |
Total accounts receivable and advances | 353,385 | 659,454 |
The bulk of receivables from other government departments and agencies are related to receivables established as a result of employee benefit plans. These receivables have decreased as a result of a reduced variance between planned benefits recovered during the year from other government departments and actual year-end benefits expense.
The increase in receivables from external parties is largely due to litigation.
The following table presents the details of tangible capital assets:
Cost | Accumulated Amortization | Net Book Value | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Capital asset class | Opening balance | Transfer of assets | Acquisitions | Disposals and writeoffs | Closing balance | Opening balance | Transfer of assets | Amortization | Disposals and writeoffs | Closing balance | 2011 | 2010 |
($ thousands) | ($ thousands) | ($ thousands) | ||||||||||
Machinery and equipment | 382 | 0 | 0 | 0 | 382 | 281 | 0 | 32 | 0 | 313 | 69 | 101 |
Motor vehicles | 125 | 26 | 0 | 0 | 151 | 52 | 1 | 41 | 0 | 94 | 57 | 73 |
Leasehold improvements | 1,952 | 0 | 0 | 0 | 1,952 | 1,952 | 0 | 0 | 0 | 1,952 | 0 | 0 |
Computer hardware | 9,980 | 212 | 3,693 | (320) | 13,565 | 6,963 | 108 | 1,787 | (320) | 8,538 | 5,027 | 3,017 |
Computer software | 14,661 | 0 | 0 | 0 | 14,661 | 3,130 | 0 | 1,442 | 0 | 4,572 | 10,089 | 11,531 |
Assets under construction | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total | 27,100 | 238 | 3,693 | (320) | 30,711 | 12,378 | 109 | 3,302 | (320) | 15,469 | 15,242 | 14,722 |
Effective April 30, 2010, the Secretariat received Informatics Hardware with a net book value of $104 thousand from the Department of Finance Canada.
Effective June 04, 2010, the Secretariat received a motor vehicle with a net book value of $25 thousand from Foreign Affairs and International Trade Canada as a result of a change in the minister appointed as the President of the Treasury Board.
The following table presents the details of the Secretariat accounts payable and accrued liabilities:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Accounts payable to other government departments and agencies | 340,182 | 321,929 |
Accounts payable to external parties | 9,400 | 14,729 |
Total accounts payable | 349,582 | 336,658 |
Accrued liabilities | 180,761 | 230,117 |
Total accounts payable and accrued liabilities | 530,343 | 566,775 |
The Secretariat's own 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 the Canada/Québec Pension Plan benefits and are indexed to inflation.
Employees and the Secretariat both contribute to the cost of the Plan. The 2010–11 employer expense amounts to $21,387 thousand ($22,589 thousand in 2009–10) in respect of its own employees, which represents approximately 1.9 times (1.9 times in 2009–10) the contributions by employees.
The Secretariat provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Accrued benefit obligation, beginning of year | 36,126 | 28,888 |
Expense for the year | 6,676 | 1,070 |
Benefits paid during the year | (3,772) | (3,935) |
Transferred from other government department, effective April 1, 2009 | 0 | 10,103 |
Accrued benefit obligation, end of year | 39,030 | 36,126 |
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. Based on the Secretariat's assessment, legal proceedings for claims estimated at $65 billion ($67 billion in 2009–10) were pending at March 31, 2011. Some of these potential liabilities may become actual liabilities when one or more future events occur, or fail to occur. To the extent that the future event is likely to occur, or fail to occur, and that a reasonable estimate of the loss can be made, an estimated liability is accrued, and an expense is recorded in the financial statements. No accrual for these contingent liabilities has been made in these financial statements.
The most significant of these legal actions is described as follows:
In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the public service, RCMP, and Canadian Forces superannuation plans. The new Act authorized the President of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the plaintiffs' actions were dismissed. In February 2008, all three plaintiffs appealed the decisions to the Ontario Court of Appeal. The appeal was heard in April 2010. On October 8, 2010, the Ontario Court of Appeal dismissed the plaintiffs' appeal. The plaintiffs applied for leave to appeal to the Supreme Court of Canada, which granted leave to appeal on May 5, 2011. No date has been set for the hearing.
The nature of the Secretariat's activities can result in some large multi-year contracts and obligations whereby the Secretariat will be obligated to make future payments when the services or goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
2012 | 2013 | 2014 | 2015 | 2016 and Thereafter | Total | |
---|---|---|---|---|---|---|
($ thousands) | ||||||
Public service health and dental plans | 35,558 | 28,263 | 31,361 | 27,407 | 41,800 | 164,389 |
Other professional services | 8,684 | 210 | 59 | 59 | 59 | 9,071 |
Management consulting | 3,163 | 32 | 0 | 0 | 0 | 3,195 |
Computer services | 776 | 203 | 27 | 27 | 0 | 1,033 |
Total | 48,181 | 28,708 | 31,447 | 27,493 | 41,859 | 177,688 |
The Secretariat is related as a result of common ownership to all government 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 on behalf of other government departments and fund the employer's contribution to the public health and dental insurance plans through its centrally managed funds. During the year, the Secretariat received and provided common services as disclosed below.
During the year, the Secretariat received services without charge from certain common service organizations, related to accommodation and legal services. These services provided without charge have been recorded in the department's Statement of Operations as follows:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Accommodation | 19,734 | 19,263 |
Legal services | 5,395 | 4,576 |
Total | 25,129 | 23,839 |
The government has centralized some of its administrative activities for purposes of 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 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 department's Statement of Operations.
The Secretariat provided 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 $1,828,978 thousand in 2010–11 (compared with $1,697,620 thousand in 2009–10).
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Accounts receivable from other government departments and agencies | 350,669 | 657,819 |
Accounts payable to other government departments and agencies | 340,182 | 321,929 |
Expenses – Other government departments and agencies | 23,423 | 21,105 |
Revenues – Other government departments and agencies | 5,495 | 4,772 |
a) 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 2, Summary of Significant Accounting Policies. The following table presents the expenses incurred and the revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the 2010–11 period are as follows:
GF and PSEP | MF | PM | EM | FM | IS | 2011 Total | 2010 Total | |
---|---|---|---|---|---|---|---|---|
($ thousands) | ||||||||
GF and PSEP – Government-Wide Funds and Public Service Employer Payments |
||||||||
Transfer Payment | ||||||||
Industry | 0 | 53 | 0 | 0 | 200 | 0 | 253 | 220 |
Total Transfer Payment | 0 | 53 | 0 | 0 | 200 | 0 | 253 | 220 |
Operating Expenses | ||||||||
Government-wide funds and public service employer payments | 1,959,769 | 0 | 0 | 0 | 0 | 0 | 1,959,769 | 2,067,613 |
Salary and employee benefits | 0 | 56,746 | 52,017 | 29,076 | 19,708 | 59,198 | 216,745 | 212,981 |
Professional and special services | 0 | 8,295 | 10,663 | 1,637 | 9,098 | 21,570 | 51,263 | 47,675 |
Accommodation | 0 | 4,539 | 4,539 | 2,368 | 1,579 | 6,709 | 19,734 | 19,263 |
Transport and telecommunications | 0 | 862 | 1,123 | 116 | 360 | 3,250 | 5,711 | 5,795 |
Machinery, equipment, parts and tools | 0 | 282 | 822 | 73 | 128 | 4,970 | 6,275 | 4,698 |
Repair and maintenance | 0 | 100 | 22 | 8 | 98 | 2,174 | 2,402 | 1,354 |
Utilities, materiel and supplies | 0 | 284 | 379 | 109 | 140 | 886 | 1,798 | 1,921 |
Information | 0 | 63 | 270 | 82 | 27 | 342 | 784 | 1,033 |
Rentals | 0 | 209 | 373 | 50 | 108 | 411 | 1,151 | 1,312 |
Amortization | 0 | 21 | 22 | 0 | 0 | 3,259 | 3,302 | 3,341 |
Other expenses | 0 | 189 | 3,772 | 21 | 6 | 13 | 4,001 | 380 |
Total Operating Expenses | 1,959,769 | 71,590 | 74,002 | 33,540 | 31,252 | 102,782 | 2,272,935 | 2,367,366 |
Total Expenses | 1,959,769 | 71,643 | 74,002 | 33,540 | 31,452 | 102,782 | 2,273,188 | 2,367,586 |
Revenues | ||||||||
Parking fees – Government-wide | 10,672 | 0 | 0 | 0 | 0 | 0 | 10,672 | 11,595 |
recovery of pension administration costs | 0 | 0 | 5,495 | 0 | 0 | 0 | 5,495 | 4,772 |
Other | 42 | 0 | 97 | 0 | 0 | 17 | 156 | 80 |
Total Revenues | 10,714 | 0 | 5,592 | 0 | 0 | 17 | 16,323 | 16,447 |
Net Cost of Operations | 1,949,055 | 71,643 | 68,410 | 33,540 | 31,452 | 102,765 | 2,256,865 | 2,351,139 |
The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat is responsible for program administration and for making contribution payments related to the Public Service Pension Plan and the Retirement Compensation Arrangement, including actuarial deficiency contribution payments, from a centrally managed fund.
The Secretariat also funds payments to, or in respect of, the following:
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 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 8.5 per cent (8.5 per cent in 2009–10) of salaries and wages incurred.
Expenses have decreased in a number of plans from 2010 to 2011. This is the result of a one time increase in 2010 related to the introduction of the Public Service Health Care Plan benefit card and the signing of a number of collective bargaining agreements resulting in retroactive pay, and is not an indication of future trends.
A breakdown by major category is as follows:
2011 | 2010 | |
---|---|---|
($ thousands) | ||
Expenses | ||
Public Service Pension Plan and Retirement Compensation Arrangement contributions (Statutory) | 2,669,956 | 2,687,405 |
Public Service Health Care Plan (Vote 20) | 865,819 | 909,815 |
Canada/Québec Pension Plan contributions (Statutory) | 634,762 | 666,590 |
Provincial payroll taxes (Vote 20) | 509,187 | 524,764 |
Group disability and life insurance (Vote 20) | 432,887 | 472,401 |
Employment Insurance premiums (Statutory) | 272,083 | 274,641 |
Public Service Dental Care Plan (Vote 20) | 258,821 | 269,608 |
Pensioners’ Dental Services Plan (Vote 20) | 129,135 | 122,031 |
Pension and other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad (Vote 20) | 55,646 | 50,330 |
Provincial Health Insurance Plan premiums (Vote 20) | 31,452 | 31,068 |
Québec Parental Insurance Plan premiums (Vote 20) | 32,181 | 32,333 |
Public Service Death Benefit Account contributions (Statutory) | 12,083 | 11,582 |
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits (Statutory) | 6,200 | 6,200 |
Operating expenses (Vote 20) | 5,627 | 5,584 |
Pension and similar payments to former government employees (Vote 20 and Statutory) | 3,626 | 3,297 |
Employment Insurance premium reduction (Vote 20) | 1,645 | 1,749 |
Miscellaneous special payments (Statutory) | (470) | (517) |
Total Expenses | 5,920,640 | 6,068,881 |
Recoveries | ||
Employer’s contributions to government employee benefit plans recovered from government departments and agencies (Statutory) | 3,588,885 | 3,639,946 |
Employer’s contributions to government employee insurance plans recovered from government departments and agencies (Vote 20) | 174,059 | 177,942 |
Employee’s contributions to the Public Service Health Care Plan recovered from government departments and other organizations (Vote 20) | 136,419 | 132,159 |
Pensioners’ contributions to the Pensioners’ Dental Services Plan (Vote 20) | 61,508 | 51,221 |
Total Recoveries | 3,960,871 | 4,001,268 |
Net Expenses | 1,959,769 | 2,067,613 |
During the year, the Secretariat adopted the revised Treasury Board Accounting Standard 1.2 – Departmental and Agency Financial Statements, which is effective for the Secretariat for the 2010–11 fiscal year. The major change in the accounting policies of the Secretariat required by the adoption of the revised TBAS 1.2 is the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position.
The adoption of the new Treasury Board accounting policies has been accounted for retroactively with the impact on the following comparatives for 2009–10.
Statement of Financial Position | 2010 as Previously Stated | Effect of Changes | 2010 Restated |
---|---|---|---|
($ thousands) | |||
Assets | 674,240 | 230,748 | 904,988 |
Equity of Canada | 61,202 | 230,748 | 291,950 |
Comparative figures have been reclassified to conform to the current year's changed program activity presentation.