ARCHIVED - Supplementary Estimates (B), 2008-09

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Introduction to Supplementary Estimates

Structure of these Supplementary Estimates

This Supplementary Estimates document is presented in three distinct sections:

1. Introduction to Supplementary Estimates ;

2. Summary Tables ; and,

3. Detail by Department, Agency and Crown corporation.

The substance of these Supplementary Estimates is provided in the summary tables and in the detail by department, agency and appropriation-dependent Crown corporation. This introduction provides the context for these Supplementary Estimates by presenting an overview of proposed spending as well as explanations of the various elements.

Over the past few years, a number of changes have been made to the format of the Supplementary Estimates to improve the transparency of the information being presented and to ensure consistency with other Estimates documents. The Treasury Board Secretariat has worked with departments and agencies to improve the quality of information presented for their individual requirements, resulting in better information describing the nature of transactions, including the offset of new spending requirements through the use of existing spending authorities.

Purpose and General Information

Supplementary Estimates documents are tabled in Parliament approximately one month in advance of the related Appropriation Act ¹ . This period is intended to provide the various Standing Committees of Parliament with sufficient time to review proposed spending before introduction of the Appropriation Act.

The purpose of Supplementary Estimates is to present to Parliament information on the Government of Canada's spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have subsequently been refined to account for developments in particular programs and services. Supplementary Estimates also provide updated information on changes to expenditure forecasts of major statutory items as well as on such items as: transfers of money between Votes; debt deletion; loan guarantees; new or increased grants; and changes to Vote wording.

These Supplementary Estimates continue to reflect the government's commitment to renew the Expenditure Management System (EMS). Normally there are at least two Supplementary Estimates documents tabled each year. Each document is identified alphabetically (A, B, C, etc.). In recent years, the first regular Supplementary Estimates document has been tabled in late October and the final document in February.

However, this year, in keeping with government commitments to renew the EMS, Supplementary Estimates (A), 2008-09 were tabled in May in order to facilitate a closer alignment of the Estimates to the Budget. These Supplementary Estimates represent the second opportunity for parliamentary review of departmental program requirements this fiscal year, and will allow departments to implement planned spending for approved programs in support of results for Canadians in a timely manner.

^{1.    Parliament's approval of an Appropriation Act provides the necessary authority for the Government of Canada to spend monies from the Consolidated Revenue Fund to carry out its programs and services.}

Spending Authority

The Supplementary Estimates present information on budgetary and non-budgetary spending authorities that are displayed for both voted and statutory expenditures.

Budgetary expenditures include:

• Cost of servicing the public debt;

• Operating and capital expenditures;

• Transfer payments to other levels of government, organizations or individuals; and

• Payments to Crown corporations.

Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.

Voted expenditures are those for which parliamentary authority is sought through an Appropriation bill.

Statutory expenditures are those authorized by Parliament through enabling legislation.

Overview of these Supplementary Estimates

Table 1 provides a financial overview of these Supplementary Estimates.

Table 1 - Total Supplementary Estimates ($ millions)

	Budgetary	Non-Budgetary	Total
Voted Appropriations	2,772.2	14.0	2,786.2
Statutory Authorities	(445.4)	0	(445.4)
Total	2,326.8	14.0	2,340.8

Spending in the Supplementary Estimates is consistent with the fiscal framework established in the February 2008 Budget.

Where differences exist between the to-date total budgetary Estimates and planned budgetary expenses for 2008-09, these differences are attributable largely to the following:

• a net adjustment, to account for certain major components of budgetary expenses that are presented on a gross basis of expenditure in the Budget, but on a net basis in the Estimates (e.g., the Canada Child Tax Benefit, departmental revenues levied for specific services and revenues of consolidated Crown corporations);
• expenditures which, for Budget and accounting purposes, have been charged to prior years to coincide with the timing of when the obligations were incurred;
• accrual accounting adjustments, as well as the recognition of 2008-09 liabilities, for items that, while being recognized, do not require appropriations (i.e., cash) this year; and,
• program expenses identified in a Budget or an Economic and Fiscal Update that have yet to be allocated to a department.

Table 2 provides a reconciliation of these differences.

Table 2 - Budgetary Expenditures ($ billions)

Budget (February 2008)			239.6
Estimates to-date :
2008-09 Main Estimates*	221.0
Supplementary Estimates (A), 2008-09	4.1
Supplementary Estimates (B), 2008-09	2.3	227.4
Adjustments :
Net adjustment, from net to gross basis of Budget
presentation**	15.2
Other adjustments***	(3.0)	12.2
Total			239.6
Variance			0

*      Includes $134.9 million for the Canada Revenue Agency, $55.1 million for the Parks Canada Agency and $224.6 million for the Canada Border Services Agency that lapsed within 2007-08 appropriations.

**    Budget presents expenses on a gross basis, whereas Main Estimates are presented on net basis. Certain revenues are netted against budgetary expenses.

***  Other adjustments, consisting of cash disbursements for capital acquisition, expenditures charged to prior years and program expenses not yet allocated.

Overview of 2008-09 to-date (Supply issues)
 

• The total 2008-09 Main Estimates in the amount of $221.5 billion, for which the voted budgetary spending component was $79.0 billion, were tabled in the House of Commons on February 28, 2008. Interim Supply, in the amount of $23.4 billion, received Royal Assent on March 29, 2008, while Full Supply for the remaining $55.6 billion received Royal Assent on June 18, 2008.
• The 2008-09 Supplementary Estimates (A) were tabled in the House of Commons on May 13, 2008. Appropriation Act No. 3, 2008-2009, provided Full Supply in the amount of $3.6 billion for the 2008-09 Supplementary Estimates (A) and received Royal Assent on June 18, 2008.
• Budget 2008 was tabled on February 26, 2008. The tabling of the 2008 Budget immediately before the 2008-09 Main Estimates means that the government can only seek spending authority for many of the newly announced measures through Supplementary Estimates. Since $3.6 billion was approved through 2008-09 Supplementary Estimates (A) in June 2008, the value of these Supplementary Estimates is consistent with previous years where the Budget is tabled immediately before Main Estimates.

Overview of Major changes to Budgetary Spending

The following provides an overview of the major items (i.e. those greater than $50 million) in total budgetary spending (Voted and Statutory) comprising the increase of $2.3 billion presented in these Supplementary Estimates.

1. Voted budgetary spending is forecast to increase by $2.770 billion and is largely attributable to the following key initiatives:

1. Funding to National Defence for Canada's military mission in Afghanistan ($331.1 million)
   
   Since the initial deployment of the Canadian Forces to Afghanistan in early 2002, the military mission has evolved in response to the increasing threat and Canada's assumption of additional responsibilities in southern Afghanistan. Changes in the nature of the mission have greatly increased the tempo of operations and associated costs. The funding sought in these Supplementary Estimates will be used to cover the additional costs of operations (e.g. mission equipment support, ammunitions, repair and overhaul, immediate care, engineering support, etc.). In addition to the $516.8 million that has already been included in the 2008-09 Main Estimates, this brings the total incremental mission funding provided to National Defence in 2008-09 to $848.6 million.
2. Funding to the Office of Infrastructure of Canada for the Provincial-Territorial Infrastructure Base Funding Program to provide long-term, predictable and flexible funding to provinces and territories for infrastructure ($326.7 million)
   
   The amendments in the Provincial-Territorial Infrastructure Base Fund included allowing the provinces and territories to use the program funding for operations and maintenance costs related to public infrastructure, broadening the eligible investments category to include provincial highways, and waiving the annual capital plan and reporting requirements for the program's first year in 2007-08. Due to delays in negotiations with provinces and territories, the Office of Infrastructure of Canada is seeking funds in these Supplementary Estimates that were not spent in 2007-08.
3. Funding to Finance for a Payment to Nova Scotia in respect of the Crown Share Adjustment Payment regarding amounts relating to previous years up to March 31, 2008 ($234.4 million)
   
   The National Energy Program in 1980 included the “Crown Share” that provided the federal government with the right to acquire shares in privately owned oil and gas projects taking place on Canada lands. In 1982, Nova Scotia set aside its own claims to oil and gas projects in exchange for a portion of the Crown Share as the compensation by the federal government. In the absence of a pre-established method for determining the entitlement, an independent panel was jointly appointed by the federal and provincial governments and the panel determined that the province was entitled to receive $234.4 million for the period up to March 31, 2008.
4. Funding to Treasury Board Secretariat for compensation for salary adjustments ($170.7 million)
   
   Funding to compensate departments, agencies and appropriation-dependent Crown corporations for the impact of collective bargaining agreements, and other related adjustments to terms and conditions of service or employment. The costs result from signed collective agreements and other related adjustments to terms and conditions of service or employment made between April 1, 2008 and July 31, 2008.
5. Funding for the operations of the Canadian Air Transport Security Authority ($156.2 million)
   
   This funding will reflect the Budget 2008 commitment on helping the Crown corporation address significant operational pressures, including continuous growth in air traffic. This funding will also support the Canadian Air Transport Security Authority in the areas of equipment maintenance, refurbishment and replacement as well as work related to the Vancouver 2010 Olympic and Paralympic Winter Games.
6. Increase to pay and allowances for Canadian Forces Members ($90.4 million )
   
   In June 2008, National Defence announced a 2% pay increase for all non-commissioned members and general service officers of the Canadian Forces effective April 1, 2008. The funding sought in these Supplementary Estimates will cover this 2% pay adjustment, as well as a 2% increase in different types of allowances related to certain working environments such as those for the new land duty, the special operations assaulter, the submarine specialty, the stress allowance for test participants, and for the Canadian Forces Station Alert located in Nunavut.
7. Funding to the Royal Canadian Mounted Police for multi-year real property projects; the acquisition or replacement of air, land and marine assets; and information technology projects ($73.4 million)
   
   This funding supports the effective management of the Royal Canadian Mounted Police's capital assets. More specifically, these funds will be directed primarily towards projects in the areas of multi-year real property (such as the municipal police detachment projects in regions where Royal Canadian Mounted Police provides contract policing services), transportation (such as the replacement of Pilatus aircraft), and information technology (such as the modernization of radio communication systems).
8. Funding to Foreign Affairs and International Trade to conduct activities under the Global Partnership Program Phase III, including destruction of chemical weapons, dismantling decommissioned nuclear submarines, improving nuclear and radiological security, re-employing former weapons scientists in peaceful research, and promoting biological non-proliferation ($68.9 million)
   
   The Global Partnership Program represents Canada's contribution to the larger G8 Global Partnership Against the Spread of Weapons and Materials of Mass Destruction. The Global Partnership is aimed at securing, reducing or eliminating weapons of mass destruction by undertaking efforts aimed at supporting Russia and other countries of the Former Soviet Union. Funding sought in these Supplementary Estimates will support Canada's activities under the Global Partnership Program on five priority areas as mentioned above.
9. Funding to Public Works and Government Services for volume and inflationary pressures on non-discretionary charges for the Real Property Program ($64.1 million)
   
   This funding will pay for budget adjustments required for price and volume protection as well as non-discretionary expense items related to Crown-owned building and leased space. These budget adjustments are based on an analysis of six market factors: property management; rental costs; fit-up costs; payment in lieu of taxes; swing space; and space costs for the Senate, House of Commons, Library of Parliament, and Office of the Conflict of Interest and Ethics Commissioner.
10. Funding to support the implementation and operations of the Indian Residential Schools Truth and Reconciliation Commission Secretariat ($58.4 million)
    
    This funding represents Canada's final financial commitment under the Truth and Reconciliation component of the Indian Residential Schools Settlement Agreement. This funding for the Secretariat will support the activities of the Truth and Reconciliation Commission including: taking statements from former students; hosting national and regional commemorative events; preparing a report on the residential schools experience that will include recommendations to the Government; and creating a permanent record of the schools' legacy.
11. Funding to the Office of Infrastructure of Canada for the Border Infrastructure Fund relating to investments in infrastructure to reduce border congestion ($56.2 million)
    
    This funding will support the efficient movement of people and goods at major border crossings through: improvements to physical infrastructure such as border access roads, road rail grade separation, road widening and inspection centers; implementation of Intelligent Transportation Systems (ITS) such as smart cards and transponder technology; and improving analytical capacities in traffic modeling and border research. Funding will also be used to support the negotiations between the federal government and participating provinces to select, assess and administer the project contribution agreements.
12. Funding to National Defence for the implementation phase of the Halifax Class frigate modernization and life extension project ($54.6 million)
    
    The Halifax Class frigates are undergoing a refit period to address equipment obsolescence issues and ensure the frigates remain operational throughout the second half of their life. The funding in these Supplementary Estimates is to support Phase 2 of the refit project, which will see the design and build of a new combat system, as well as the reconfiguration of the mast and operations room. The total cost of the refit is estimated to be $2.988 billion.

2. Statutory spending is expected to decrease by $445.4 million and is mainly attributable to the following forecast changes:

1. Revised forecast by Finance of transfer payments to provincial and territorial governments ($1,225.9 million)
   
   Finance has increased its forecast for the Incentive for Provinces to Eliminate Taxes on Capital by $49 million due to provincial budget announcements in 2008. The total increase in other federal-provincial transfers, announced in Budget 2008, is $1,176.9 million. Specifically, these are the Public Transit Capital Trust 2008, Police Officers Recruitment Fund, Saskatchewan Carbon Capture and Storage Demonstration Trust, Canada Social Transfer Transition Protection Payments to Saskatchewan and Nunavut, and Payments to Nova Scotia for Carbon Storage.
2. Payments to provinces under the Softwood Lumber Products Export Charge Act ($419.0 million)
   
   Canada Revenue Agency is responsible for collecting the charges and making payments to the provinces based on the charges collected over the course of the application of the Canada - US Softwood Lumber Agreement. These payments are reduced by several factors: refunds paid to the softwood lumber industry, costs of the administration and implementation of the Agreement, and costs incurred for any litigation resulting from the Softwood Lumber Products Export Charge Act . It is estimated that a total payment of $419 million for the fiscal year 2008-09 will be paid to the provinces under the Act .
3. Revised forecast by Finance of public debt charges due to a significant downward revision in forecasted interest rates (a decrease of $2,174.0 million)
   
   This reduction reflects a significant downward revision in forecast interest costs associated with the Public Debt for the fiscal year 2008-09.

Major Changes in these Supplementary Estimates

The purpose of this section is to describe changes to government organization and structure and changes in authorities (Votes and Statutory items), since the tabling of the 2008-09 Supplementary Estimates (A).

Changes to Presentation:

Any permanent allocations from Treasury Board centrally-managed Votes made to departments and agencies since approval of the Appropriation Acts for 2008-09 Main Estimates and Supplementary Estimates (A) have the effect of increasing their spending authorities. In order to reflect these adjustments, the “Summary of these Supplementary Estimates” table has been amended so that it now shows “Previous Authorities” based on previous Appropriation Acts, subsequent adjustments in the “Permanent Allocations from TB Central Votes” and then the departments and agencies new “Authorities to date”. These changes are also reflected in the individual Ministry Summaries as “Authorities to date” as the starting point for the analysis of changes to specific departmental votes rather than “Previous Estimates”.

Changes to Government Organization and Structure:

Pursuant to the Public Service Rearrangement and Transfer of Duties Act, the Government announced a series of reorganizations to the structure of certain ministries. The reorganizations resulted in the following changes to these Supplementary Estimates:

• Order in Council P.C. 2008-0768 fixed July 2, 2008 as the day on which sections 90, 91, 97 and 98 of the Federal Accountability Act , being chapter 9 of the Statutes of Canada 2006, come into force. The Office of the Registrar of Lobbyists was replaced by the Office of the Commissioner of Lobbying.
• Order in Council P.C. 2008-0793 establishes the Indian Residential Schools Truth and Reconciliation Commission and specifies its mandate, effective June 1, 2008.
• Order in Council P.C. 2008-0805 amalgamates and combines the Office of Indian Residential School Resolution of Canada with the Department of Indian Affairs and Northern Development under the Minister and Deputy Minister of Indian Affairs and Northern Development, effective June 1, 2008.
• Order in Council P.C. 2008-1488 fixes August 10, 2008 as the day on which An Act to amend the Museums Act and to make consequential amendments to other Acts , being chapter 9 of the Statutes of Canada 2008 comes into force which creates the Canadian Museum for Human Rights.

Also, Statutes of Canada 2008, Chapter 22, cited as the Specific Claims Tribunal Act ; establishes the Specific Claims Tribunal and the Registry of the Specific Claims Tribunal, specifies their mandate, makes consequential amendments to other Acts, effective October 18, 2008.

Changes to Votes and Statutory Items

Changes to authorities implemented through these Supplementary Estimates include Votes and Statutory items that contain specific authorities that differ from those included in the 2008-09 Main Estimates and Supplementary Estimates (A), 2008-09, as well as new expenditure authorities appearing for the first time. Consistent with a 1981 ruling by the Speaker of the House of Commons, the Government has made a commitment that the only legislation that will be enacted through the Estimates process, other than cases specifically authorized by Statute, will be amendments to previous Appropriation Acts.

The following new Votes have been added since Supplementary Estimates (A), 2008-09:

Canadian Heritage - Canadian Museum for Human Rights

Vote 27b - Payments to the Canadian Museum for Human Rights for operating and capital expenditures

Foreign Affairs and International Trade - Department

Vote 11b - Passport Canada - Capital expenditures

Vote 12b - To increase, pursuant to subsection 10(3.1) of the Export Development Act , the contingent liability of the Corporation referred to in paragraph 10(3)(b) of that Act from $30,000,000,000 to $33,000,000,000

Indian Affairs and Northern Development - Department

Vote 7b - To increase from $1,700,000,000 to $2,200,000,000 the amount of loans that the Minister of Indian Affairs and Northern Development may guarantee pursuant to Indian Affairs and Northern Development Vote 5, Appropriation Act No. 3, 1972

Indian Affairs and Northern Development - Indian Residential Schools Truth and Reconciliation Commission Secretariat

Vote 47b - Operating expenditures

Treasury Board - Secretariat

Vote 15b - Compensation Adjustments - Subject to the approval of the Treasury Board, to supplement other appropriations that may need to be partially or fully funded as a result of adjustments made to terms and conditions of service or employment of the federal public administration, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act

The following Vote wording (underscored) has been amended since Supplementary Estimates (A),
2008-09:

Parliament - House of Commons

Vote 5b - Program expenditures, including allowances in lieu of residence to the Speaker of the House of

Commons, and in lieu of an apartment to the Deputy Speaker of the House of Commons, payments in respect of the cost of operating Members' constituency offices, contributions and authority to expend revenues received during the fiscal year arising from the activities of the House of Commons - To authorize the transfer of $8,093,000 from Parliament Vote 10, Appropriation Act No. 2, 2008-2009 for the purposes of this Vote

Public Safety and Emergency Preparedness - Royal Canadian Mounted Police

Vote 60b - The grants listed in the Estimates and contributions, provided that the amount listed for any grant may be increased or decreased subject to the approval of the Treasury Board - To authorize the transfer of $1,801,500 from Public Safety and Emergency Preparedness Vote 50, Appropriation Act No. 2, 2008-2009 for the purposes of this Vote

Treasury Board - Secretariat

Vote 1b - Program expenditures and the payment to each member of the Queen's Privy Council for Canada who is a Minister without Portfolio or a Minister of State who does not preside over a Ministry of State of a salary not to exceed the salary paid to Ministers of State who preside over Ministries of State under the Salaries Act , as adjusted pursuant to the Parliament of Canada Act and pro rata for any period of less than a year and authority to expend revenues received during the fiscal year arising from activities of the Treasury Board Secretariat - To authorize the transfer of $934,800 from Public Works and Government Services Vote 1, and $245,000 from Canada Revenue Agency Vote 1, Appropriation Act No. 2, 2008-2009 for the purposes of this Vote and to provide a further amount of

Vote 30b - Paylist Requirements - Subject to the approval of the Treasury Board, to supplement other appropriations for requirements related to parental and maternity allowances, entitlements on cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration including members of the Royal Canadian Mounted Police and the Canadian Forces, where these have not been provided from Vote 15, Compensation Adjustments

The following new statutory items have been added since Supplementary Estimates (A), 2008-09:

Agriculture and Agri-Food - Department

Grants in support of the Cull Swine Breeding Program

Canada Revenue Agency

Payments to provinces under the Softwood Lumber Products Export Charge Act

Payments under the Energy Costs Assistance Measures Act

Finance - Department

Public Transit Capital Trust 2008 ( Budget Implementation Act, 2008 )

Police Officers Recruitment Fund ( Budget Implementation Act, 2008 )

Saskatchewan Carbon Capture and Storage Demonstration Trust ( Budget Implementation Act, 2008 )

Canada Social Transfer Transition Protection Payment to Saskatchewan ( Budget Implementation Act, 2008 )

Payment to Nova Scotia for Carbon Storage ( Budget Implementation Act, 2008 )

Canada Social Transfer Transition Protection Payment to Nunavut ( Budget Implementation Act, 2008 )

Human Resources and Skills Development - Department

Wage Earner Protection Program payments to eligible applicants owed wages and vacation pay from employers who are either bankrupt or in receivership as well as payments to trustees and receivers who will provide the necessary information to determine eligibility

Overview of Summary Tables

This section provides an overview of the following summary tables provided in the Supplementary Estimates.

1. Summary of these Supplementary Estimates
2. Summary of Estimates to Date for 2008-09
3. Proposed Schedules to the Appropriation Bill
4. Statutory Items in these Supplementary Estimates
5. Summary of Changes to Voted Appropriations
6. Budgetary Supplementary Estimates by Standard Object of Expenditure
7. Allocations from Treasury Board Central Votes
8. Horizontal Items included in these Supplementary Estimates
9. Transfers between organizations included in these Supplementary Estimates
10. $1 Items included in these Supplementary Estimates

1. Summary of these Supplementary Estimates

This table identifies Budgetary ² and Non-Budgetary ³ Supplementary Estimates by department, agency and Crown corporation, and by type of parliamentary authority (annual Vote and Statutory requirements).

The first two columns entitled “Previous Authorities” represent Estimates to date as presented in the Main Estimates and Supplementary Estimates (A). The third column entitled “Permanent Allocations from TB Central Votes” represents permanent allocations from Treasury Board centrally-managed Votes which has an impact on departments' spending authorities. The column entitled “Total authorities to date” represents the departments' total Authorities which is the starting point for these Estimates.

The next six columns entitled “These Supplementary Estimates” are the current requirements as provided in Supplementary Estimates (B). These requirements are split into three categories: Transfers, To be Voted ⁴ and Statutory ⁵ .

The last two columns entitled “Total Estimates to Date” provides the reader with an update of total Budgetary and Non-Budgetary requirements for 2008-09.

2. Summary of Estimates to Date for 2008-09

This table displays Main Estimates together with Supplementary Estimates (A) and amounts being requested in these Supplementary Estimates (B) and contains a breakdown of funding by Budgetary and Non-Budgetary/Voted and Statutory requirements.

^{2 . Budgetary expenditures encompass the cost of servicing the public debt; operating and capital expenditures; transfer payments and subsidies to other levels of government, organizations and individuals; and payments to Crown corporations and separate legal entities.}

^{3 . Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.}

^{4 . Voted requirements are those for which the government must seek Parliamentary approval through an Appropriation Act. For additional information on votes and vote wording, see the Proposed Schedule to the Appropriation Bill.}

^{5 . Statutory authorities are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the terms and conditions under whi} ch they may be made. Statutory spending is included in the Supplementary Estimates for information only.

3. Proposed Schedules to the Appropriation Bill

This table provides the reader with a preview of the Appropriation Bill. As noted previously, Supplementary Estimates directly support the Bill. This table provides a list of Vote numbers, Vote wording and the requested funds that will be proposed to Parliament for approval. There are two schedules to the Appropriation Bill in Supplementary Estimates: Schedule 1 identifies those items for the fiscal year ending March 31, 2009 whereas Schedule 2 identifies those items for the fiscal year ending March 31, 2010, specifically, multi-year appropriations for the Canada Revenue Agency, Parks Canada Agency and Canada Border Services Agency.

Only positive adjustments to departmental appropriations are included in the Proposed Schedules to the Appropriation Bill. Where an organization has a net zero or negative amount displayed in these Supplementary Estimates, no change to existing spending authority is requested of Parliament.

Once the Appropriation Bill is approved, the Vote wording becomes the governing conditions under which expenditures may be made. The following kinds of Votes can appear in Supplementary Estimates:

1. Program Expenditures Votes - This type of Vote is used when there is no requirement for either a separate “Capital Expenditures” Vote or “Grants and Contributions” Vote because neither equals or exceeds
   $5 million. In this case, all program expenditures are charged to the one Vote.
2. Operating Expenditures Votes - This type of Vote is used when there is a requirement for either a “Capital Expenditures” Vote or a “Grants and Contributions” Vote or both; that is, when expenditures of either type equals or exceeds $5 million. Where they do not, the appropriate expenditures are included in the “Program Expenditures” Vote.
3. Capital Expenditures Votes - This type of Vote is used when the capital expenditures in a program equal or exceed $5 million. Expenditure items in a capital Vote could include individual items expected to exceed $10,000 for the acquisition of land, buildings and works (Standard Object 8), as well as the acquisition of machinery and equipment (Standard Object 9), or for purposes of constructing or creating assets, where a department expects to draw upon its own labour and materials, or employs consultants or other services or goods (Standard objects 1 to 9). Different threshold limits may be applied for different capital expenditure classes at the departmental level.
4. Grants and Contributions Votes - This type of Vote is used when the grants and contributions expenditures in a program equal or exceed $5 million. It should be noted that the inclusion of a grant, contribution or other transfer payment item in Supplementary Estimates imposes no requirement to make a payment, nor does it give a prospective recipient any right to the funds. It should also be noted that in the Vote wording, the meaning of the word “contributions” is considered to include “other transfer payments” because of the similar characteristics of each.
5. Non-Budgetary Votes - This type of Vote, identified by the letter “L”, provides authority for spending in the form of loans or advances to, and investments in, Crown corporations and loans or advances for specific purposes to other governments, international organizations or persons or corporations in the private sector.
6. Special Votes: Crown Corporation Deficits and Separate Legal Entities - Where it is necessary to appropriate funds for a payment to a Crown corporation or for the expenditures of a legal entity that is part of a larger program, a separate Vote is established. A legal entity for these purposes is defined as a unit of government operating under an Act of Parliament and responsible directly to a Minister.
7. Special Votes: Treasury Board Centrally Financed Votes - To support the Treasury Board in performing its statutory responsibilities for managing the government's financial, human and materiel resources, a number of special authorities are required and these are outlined below.
   1. Government Contingencies Vote - This Vote serves to supplement other appropriations to provide the Government with sufficient flexibility to meet urgent or unforeseen expenditures where a valid cash requirement exists due to the timing of the payment or where specific authority is required to make the payment, such as for the payment of grants not listed in the Estimates. This authority to supplement other appropriations is provided until parliamentary approval can be obtained and as long as the expenditures are within the legal mandate of the organization.
   2. Government-Wide Initiatives Vote - This Vote supplements other appropriations in support of the implementation of strategic management initiatives in the Public Service of Canada.
   3. Compensation Adjustments Vote - This Vote supplements other appropriations to provide funding for the increased personnel costs of collective agreements between the Treasury Board and collective bargaining units representing public servants, as well as collective agreements signed by separate employers, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act.
   4. Public Service Insurance Vote - This Vote provides for the payment of the employer's share of health, income maintenance and life insurance premiums; for payments to or in respect of provincial health insurance plans; provincial payroll taxes; pension, benefit and insurance plans for employees engaged locally outside Canada; and to return to certain employees their share of the unemployment insurance premium reduction.
   5. Operating Budget Carry Forward Vote - This Vote supplements other appropriations for the operating budget carry forward from the previous fiscal year.
   6. Paylist Requirements Vote - This Vote supplements other appropriations for requirements related to parental and maternity allowances, entitlements on cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration including members of the Royal Canadian Mounted Police and the Canadian Forces, where these have not been provided from Vote 15, Compensation Adjustments.

4. Statutory Items in these Supplementary Estimates

This table provides Parliament with an update on significant changes to expenditure forecasts of major statutory items. Statutory items are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the terms and conditions under which they may be made. Statutory spending is displayed in the Supplementary Estimates for information only.

5. Summary of Changes to Voted Appropriations
 

This table displays all Voted information displayed in these Supplementary Estimates in Ministry order.

The first column (Vote Number) indicates the Vote that is to be augmented through these Supplementary Estimates. The letter accompanying the Vote indicates which Supplementary Estimates was used to augment the Vote.

The second column (Gross Amount) displays the total amount of funding being sought in these Supplementary Estimates by the respective department.

The third columns (Less: Available Spending Authorities) represents unused spending authority being used by organizations to minimize the amount of additional spending authority being requested in these Supplementary Estimates. Additional information on these amounts is provided in the respective departmental detail sections.

The fourth column (Net Amount) displays the net amount of incremental funding being reflected in these

Supplementary Estimates. However, it should be noted that the Proposed Schedules to the Appropriation Bill do not reflect funding for organizations where the net amount is zero or negative.

6. Budgetary Supplementary Estimates by Standard Object of Expenditure

To determine and report more accurately the impact of government expenditures on the rest of the economy, the net amount of government purchases by standard object must be determined. All departments, including those that use revolving funds, must charge their expenditures for purchases to standard object expense categories. Standard objects are the highest level of object classification used for parliamentary and executive purposes, and are reported in the Main and Supplementary Estimates and the Public Accounts. The standard objects of expenditure are as follows:

1. Personnel
2. Transportation and communications
3. Information
4. Professional and special services
5. Rentals
6. Purchased repair and maintenance
7. Utilities, materials and supplies
8. Acquisition of land, buildings, and works
9. Acquisition of machinery and equipment
10. Transfer payments
11. Public debt charges
12. Other subsidies and payments

A brief explanation of each Standard Object is provided at the end of the introduction section.

7. Allocations from Treasury Board Central Votes
 

This summary table provides a comprehensive list of allocations from Treasury Board (TB) Central Votes for Government Contingencies, Government-wide Initiatives, Compensation Adjustments, Operating Budget Carry Forward and Paylist Requirements, where applicable.

Government Contingencies (TB Vote 5) - This summary table provides a comprehensive list of organizations that have received temporary Treasury Board Contingency Vote (TB Vote 5) funding. Temporary funding can be provided for urgent miscellaneous, minor and unforeseen expenditures, which were not provided for in the Main Estimates and which are required before the next Supplementary Estimates receive Royal Assent. Once Parliament approves the Appropriation Bill for Supplementary Estimates and the Governor General provides Royal Assent, the temporary funding is reimbursed to TB Vote 5.

The following criteria must be met in order for Treasury Board to approve access to TB Vote 5:

• All advances from the Government Contingencies Vote should be considered temporary advances to be covered by items included in subsequent Supplementary Estimates and reimbursed when the associated appropriation act is passed. Exceptions are made for requirements that arise after final Supplementary Estimates for the fiscal year where advances would not be reimbursable.
• An organization's existing appropriation must be insufficient to cover both existing requirements and the new initiative until the next Supply period. To that end, an organization must support any request with a valid cash flow analysis.
• A valid and compelling reason exists, particularly as it relates to the payment of grants, as to why the payment needs to be made before the next Supply period. If not, the payment should be deferred and access to TB Vote 5 denied.
• For grants, the Transfer Payment Policy must be consulted and followed to ensure that a valid, legally incorporated recipient exists and that the organization clearly demonstrates that it needs to make a payment before the next Supply period.

Government-Wide Initiatives (TB Vote 10) - This Vote supplements other appropriations in support of the implementation of strategic management initiatives within the public service of Canada. Departments and agencies are not required to reimburse funding allocated from Vote 10.

Compensation Adjustments (TB Vote 15) - This Vote supplements other appropriations that may need to be partially or fully augmented as a result of adjustments made to terms and conditions of service or employment of the federal public administration, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act . Departments and agencies are not required to reimburse funding allocated from Vote 15.

Operating Budget Carry Forward (TB Vote 25) - This Vote supplements other appropriations by authorizing a carry forward of unused funds from the previous fiscal year up to a maximum of five per cent of departments' and agencies' Main Estimates operating budget as was established in the previous fiscal year. Departments and agencies are not required to reimburse funding allocated from Vote 25.

Paylist Requirements (TB Vote 30) - This Vote supplements other appropriations by providing the government with funding to meet legal requirements of the employer such as parental leave, maternity leave, entitlements upon cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration. Departments and agencies may access this Vote throughout the fiscal year. Departments and agencies are not required to reimburse funding allocated from Vote 30.

8. Horizontal Items included in these Supplementary Estimates

A horizontal initiative is an initiative in which partners from two or more organizations have established a formal funding agreement (e.g. Memorandum to Cabinet, Treasury Board submission, federal-provincial agreement) to work toward the achievement of shared outcomes.

This table provides a summary of those items for which funding is sought in these Supplementary Estimates. While the list is not exhaustive, it does provide an overview of initiatives related to these Supplementary Estimates where two or more organizations are seeking incremental funding increases.

9. Transfers between organizations included in these Supplementary Estimates

Departments often request the authority to transfer monies between organizations for various purposes. This table provides a summary of these transactions.

10. $1 Items included in these Supplementary Estimates

Supplementary Estimates often include “one dollar items”, which seek an alteration in the existing allocation of funds or to existing Vote wording (as in the case of loan guarantees) as authorized in the Main Estimates. The purpose of a one dollar item is not to seek new or additional funds, but rather to re-allocate existing spending authorities between Votes and/or to provide appropriate authorities. Therefore, since no new funds are requested, the “one-dollar” amount is merely symbolic.

For example, one-dollar items may be used to:

• Transfer funds from one Vote to another;
• Write off debts;
• Adjust loan guarantees;
• Authorize grants; or
• Amend previous appropriation acts.

Detail by Department, Agency and Crown Corporation

Departments, agencies and Crown corporations for which a Minister is responsible, or reports to Parliament, are grouped together to provide a total ministry presentation.

Each organization is divided into four sections:

1. Ministry Summary;
2. Explanation of Requirements (Voted Appropriations, Funds Available, Transfers and Statutory Appropriations);
3. Explanation of Funds Available (if applicable); and
4. Transfer Payments (if applicable).

1. Ministry Summary

This table displays all Voted and Statutory information in Ministry order, including:

• Vote number and Vote wording;
• Authorities to date - Main Estimates plus any prior Supplementary Estimates funding and Permanent Allocation from TB Central Votes;
• Transfers between Votes both within and between organizations;
• Adjustments to Appropriations (new funding requests); and
• Total Estimates to date.

Where the total program supplement results in a net zero or negative amount for an organization, this will not form part of the Appropriation Bill for these Supplementary Estimates. Net zero or negative amounts are displayed for information purposes.

2. Explanation of Requirements

This section provides a description of the individual items or initiatives for which spending authority is being requested. Horizontal initiatives affecting more than one organization are flagged as ( horizontal item ) and will be displayed in the summary table “Horizontal Items included in these Supplementary Estimates” presented at the front end of these Supplementary Estimates.

This section also identifies all transfers between and within organizations, whether they relate to: a transfer of monies between organizations to accomplish a particular objective; the transfer of responsibility for the delivery of a program; realignments flowing from machinery changes announced by the government; or transfers within an organization to support program needs. Transfers do not have an impact on new appropriations being requested by organizations. Transfers will be displayed in the Ministry Summary separately from new appropriations and will also be displayed in the summary table dealing with transfers between organizations at the front end of these Supplementary Estimates.

3. Explanation of Funds Available
 

This section provides information about funds that are used to offset or reduce new spending requirements included in Supplementary Estimates. To minimize the amount of new appropriation authorities requested from Parliament, surplus spending authority available in one Vote can be redirected to another Vote to reduce the overall amount of supplementary spending authority required. As well, surplus spending authority available in a number of frozen allotments can be used with Treasury Board authority to reduce the amount of new appropriations required.

Some examples of surplus spending authority used for offsets include: funds transferred from one Vote to another Vote in the same organization; or funds moved from one fiscal year to another fiscal year in the same organization.

4. Transfer Payments

This table provides a listing of transfer payments.

A transfer payment is a grant, contribution or other payment made for the purpose of furthering program objectives but for which no goods or services are received.

1. Grants, contributions and other transfer payments differ in several respects:
2. Contributions are transfer payments where the recipients must meet performance conditions and may be subject to audit;
3. Grants are transfer payments made on the basis of established eligibility and not normally subject to audit;
4. Grants and their total values have a legislative character and specific descriptions that govern their use; and
5. Other transfer payments are transfer payments, other than grants and contributions, based on legislation or an arrangement which may include a formula to determine the annual amounts.

Explanation of the Standard Object of Expenditures

1. Personnel

• Salaries and wages, overtime, severance pay, retroactive pay and other special pay of civilian continuing (full-time) or term (part-time, seasonal and casual) employees except those of agency and proprietary Crown corporations, as well as members of the military and the Royal Canadian Mounted Police.
• Judges' salaries, those of the Governor General, the Lieutenant-Governors and the indemnities to Members of both Houses of Parliament, and all types of allowances paid to or in respect of continuing and term employees (such as living, terminable, foreign service, isolated post, board and subsistence allowances, shift differential allowances for assistants, and other such allowances).
• Ministers' motor car allowances, and the expense allowances to Senators and Members of the House of Commons.
• The Government's contribution to various employee benefit plans (the Public Service Superannuation Account, the Supplementary Retirement Benefits Account, the Canada Pension Plan Account, the Quebec Pension Plan Account, the Public Service Death Benefit Account and the Employment Insurance Account).
• The Royal Canadian Mounted Police Superannuation Account, the Canadian Forces Superannuation Account and the Members of Parliament Retiring Allowances Account, and the Government's contribution to provincial and other medical and hospital insurance plans and supplementary personnel costs for various purposes.

2. Transportation and Communications

• Traveling and transportation expenses of Government employees, members of the Canadian Forces and the Royal Canadian Mounted Police, removal expenses of those persons and their dependants, and living and other expenses of such persons on travel status, judges' traveling expenses, and traveling expenses and allowances payable to Senators and Members of the House of Commons.
• Transportation of persons by contract and chartered facilities or by other means (including traveling expenses of persons engaged in field survey work, inspections and investigations), and traveling and transportation of non-Government employees such as travel costs of veterans who are applicants for treatment or pensions.
• Ordinary postage, airmail, registered mail, parcel post special delivery mail, post office box rentals, and any other postal charges.
• Expenditures relating to the transportation of goods other than initial delivery cost on a purchase (which is included in the Standard Object covering the cost of the purchase itself) including charges for courier services provided by outside carriers.
• All costs of telecommunication services by telephone, telegram, cable, teletype, radio and wireless communication (tolls, rates, etc.) and other communication costs such as courier services provided by outside agencies and communication services performed under contract or agreement.

3. Information

• Advertising services acquired for publicity and general purposes from advertising agencies or directly for time on broadcast media or for space in print media or on outdoor posters or billboards. It includes advertising and creative work services such as graphic artwork.
• Publishing services for commissioning, marketing, distribution and sales of publications sponsored by the department, and for the acquisition of related government publications. Also included are services for printing, duplicating, photocopying, text editing, design of graphics, art work, technical and advisory services such as computerized text processing and mass transmission of printed material. In addition, it includes exposition services such as exhibits and associated audio-visual services related to exhibitions and displays.
• Public relations and public affairs services for attitude and service assessment surveys, sales promotion, marketing, export marketing, public relations and publicity, opinion polls, and contracts to organize and operate focus groups and media monitoring services. It also includes services for speech writing, press releases, briefing, press conferences and special events.

4. Professional and Special Services

• Provision for all professional services performed by individuals or organizations such as payments (in the nature of fees, commissions, etc.) for the services of accountants, lawyers, architects, engineers, scientific analysts, reporters, and translators; for teachers at various levels of educational institutions; for doctors, nurses and other medical personnel; for management, data processing and other research consultants; and for other outside technical, professional and other expert assistance.
• Payments for hospital treatment, care of veterans and welfare services, payments for the provision of informatics services, payment of tuition for Indians at non-federal schools, purchase of training services under the Adult Occupational Training Act , and payments made to the Canada School of Public Service for training.
• Payments for Corps of Commissionaires services and for other operational and maintenance services performed under contract, such as armoured cars, laundry and dry cleaning, cleaning of buildings, temporary help, hospitality, storage and warehousing, and other business services, as well as payments made to the Department of Public Works and Government Services for contract administration.

5. Rentals

• Rental of properties required for special purposes by the various departments and for the accommodation of government offices and services by the Department of Public Works and Government Services.
• Hire and charter - with or without crew - of vessels, aircraft, motor vehicles and other equipment, and rental of telecommunication and office equipment including computers.

Storage and warehousing services is, however, in Standard Object 4 even though it involves the rental of space.

6. Purchased Repair and Maintenance

• The repair and upkeep under contract of the durable physical assets provided for in Standard Object 8 for Acquisition of Land, Buildings, and Works and of equipment provided for in Standard Object 9 for Acquisition of Machinery and Equipment.
• Payments to the Department of Public Works and Government Services for tenant services.
• Materials, supplies and other charges for repairs undertaken by a department directly are coded to other objects, according to the nature of the purchase.

7. Utilities, Materials and Supplies

• The provision for all payments for services of a type normally provided by a municipality, or public utility service such as the supply of water, electricity, gas, etc., and includes water, light, power and gas services, and payment for such services whether obtained from the municipality or elsewhere.
• The provision for materials and supplies required for normal operation and maintenance of government services such as:
  • gasoline and oil purchased in bulk; fuel for ships, planes, transport and heating
  • feed for livestock
  • food and other supplies for ships and other establishments
  • livestock purchased for ultimate consumption or resale
  • seed for farming operations
  • books and other publications purchased for outside distribution
  • uniforms and kits
  • photographs, maps and charts purchased for administrative and operational purposes
  • laboratory and scientific supplies, including samples for testing
  • drafting, blueprinting and artists' supplies; supplies for surveys and investigations
  • chemicals
  • hospital, surgical and medical supplies
  • works of art for exhibits, and historical material for galleries, museums and archives
  • char service supplies
  • coal and wood
  • electrical supplies
  • repair parts other than parts normally acquired with equipment at the time of purchase for aircraft, ships, road vehicles, and for communication and other equipment; and all other materials and supplies.

8. Acquisition of Land, Buildings, and Works

• All expenditures for the acquisition of buildings, roads, irrigation works, canals, airports, wharves, bridges and other such types of fixed assets.
• Improvements involving additions or changes of a structural nature, and for installing fixed equipment which is essentially a part of the work or structure such as elevators, heating and ventilating equipment.
• All reconstruction of such types of physical assets and such projects performed under contract or agreement.
• The purchase of land.

Expenditures pursuant to contracts for new construction for casual employees hired or continuing employees assigned to work full or part-time on specified projects, travel, professional services, equipment rentals, equipment maintenance and of materials purchased directly for use on such projects are charged to the relevant standard objects (Standard Objects 1 to 9).

9. Acquisition of Machinery and Equipment

• Expenditures for the acquisition of all machinery, equipment, office furniture and furnishings, electronic data processing and electronic or other office equipment.
• Microfilming equipment and supplies, inter-office communication equipment, postal meter machines, machine records and all other office equipment.
• Motor vehicles, aeroplanes, tractors, road equipment, telecommunications and related equipment, laboratory and other scientific equipment, vessels, icebreakers and other aids to navigation and all other types of light and heavy equipment; includes ammunition and various types of equipment for National Defence, such as ships, aircraft, mechanical equipment, fighting vehicles, weapons, engines and such spare parts and supplies as are normally acquired with that equipment at the time of purchase.

10. Transfer Payments

• Grants, contributions, subsidies and all other transfer payments made by Government.
• Major social assistance payments made to persons such as Old Age Security benefits and related allowances, Veterans' pensions and allowances.
• Subsidies and payments to the provinces and territories under the Constitution Acts , the Federal-Provincial Fiscal Arrangements Act , the Canada Health and Social Transfers and for official languages.
• Payments to Indians and Inuit in support of self-government initiatives, health, educational, social and community development programming and in respect of native claims.
• Payments to the territorial governments pursuant to financing agreements entered into between the Minister of Finance and the respective territorial Minister of Finance.
• Subsidies and capital assistance to industry; research grants and other assistance towards research carried on by nongovernmental organizations; scholarships.
• Sustaining grants to national and international non-profit organizations.
• Contributions to international organizations and assessments for membership in such organizations, such as the contribution to the International Food Aid Program and Canada's assessment for membership in the United Nations.

Most of the payments in this standard object category are identified in the Estimates as “Grants” or “Contributions”. The former are not subject to audit and are therefore restricted by Parliament as to amount and recipient and often as to purpose through the approval of the Supply bill which specifies “grants listed in the Estimates”; the latter are conditional and subject to audit and are not so restricted. Grants and their total values have a legislative character and specific descriptions that govern their use.

11. Public Debt Charges

• Interest on the unmatured debt of Canada (including Treasury Bills) and on other liabilities such as trust and other special funds.
• The cost of issuing new loans, amortization of bond discount, premiums and commissions.
• The cost of servicing and administering the Public Debt.

12. Other Subsidies and Payments

• Payments to Crown corporations that include those made to provide for operating deficits as well as other transfers paid to Crown corporations.
• Payments to certain non-budgetary accounts (such as the government contributions to agricultural commodities stabilization accounts, as well as benefits under the Veterans Land Act), as well as the write-offs of various types of losses, the annual adjustment of reserves for financial claims and some other miscellaneous items referred to as “Sundries”.

Miscellaneous expenditures include licences, permits and payments for dockage, towage, wharfage and mooring privileges; bonding of government employees, loss of personal effects, and expenditures for small miscellaneous articles and services. Also included are many small items and services that do not lend themselves to identification under specific headings detailed in this summary.

 

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