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2009-10
Report on Plans and Priorities

Treasury Board of Canada Secretariat

Supplementary Information (Tables)

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Table of Contents

• Details on Transfer Payments Programs
• Green Procurement
• Sustainable Development Strategy
• Internal Audits
• Evaluations
• Sources of Respendable and Non-respendable Revenue
• User Fees/External Fees
• Future-oriented Statement of Operations
• Departmental Planned Spending and FTEs
• Voted and Statutory Items

Transfer Payment Policy – Three Year Plan
As at June 30, 2009

(thousands of dollars)

Name of transfer payment program (fiscal year)	Forecast spending for current fiscal year	Last evaluation or review		Fiscal year of planned completion of next evaluation
		Fiscal year of last completed evaluation	Approved decision as a result of last evaluation
Research and Policy Initiatives Assistance (RPIA) (2008-2009)	0	2008-2009	Continuation (C)	2013-2014
International Public Sector Standards Accounting Board	$200	N/A		2010-2011

Table 1: Green Procurement

Table 2: Sustainable Development Strategy

This table outlines the Secretariat's remaining or ongoing commitments for the Sustainable Development Strategy 2007–09 (SDS 2007–09). These commitments apply only to the first three quarters of 2009, as the SDS runs on the calendar, not the fiscal, year.

SDS Departmental Goal 1: Contribute to improved management of and accountability for sustainable development within the Government of Canada

Federal sustainable development (SD) goal, including greening government operations (GGO) goals	Performance measurement from current SDS	Department's expected results for 2009-10
Strengthen federal governance and decision making to support sustainable development.	Improved guidance on SD for reports on plans and priorities (RPP) and departmental performance reports (DPR); increased linkages to federal SD goals in reporting; improved SD reporting from a whole-of-government perspective. Ongoing Learning opportunities about managing SD for the Secretariat are offered. Ongoing	Work in partnership with Environment Canada (EC) to develop reporting priorities and guidance under the Federal Sustainable Development Act (FSDA); continue to engage and work with departments to provide the most effective means for integrated SD reporting. Continue to provide Secretariat analysts with targeted annual information sessions detailing how to challenge submissions on SD grounds; ensure SD continues to be included in orientation of new Secretariat employees; develop a web presence for the SD Champion.
Clear and effective governance mechanisms to integrate sustainable development into decision making.	Revised guidance materials for submissions are developed (e.g. guides on preparing Treasury Board submissions and regulatory submissions). Ongoing The Secretariat supports, where appropriate, Public Works and Government Services Canada (PWGSC) in leading and improving GGO management through the development of management tools. Ongoing	Incorporate SD into the RIAS Writers Guide and other tools. Provide ongoing support, as appropriate, to PWGSC in its development of management approaches and tools to improve GGO (e.g. data and expertise sharing, reporting mechanisms).

SDS Departmental Goal 2: Make progress on federal priorities related to sustainable development

Federal SD goal, including GGO goals	Performance measurement from current SDS	Department's expected results for 2009-10
Reduce greenhouse gas (GHG) emissions.	Improved learning opportunities through workshops, sessions, and symposia. Ongoing	Hold the annual Federal Fleet Workshop to share best practices with departments, raise awareness of new green technologies, and improve the management of the federal fleet.
Risks to human and ecosystem health from harmful substances are reduced (including clean-up of federal contaminated sites).	Administration of the Federal Contaminated Sites Action Plan (FCSAP) will be monitored to ensure compliance with the contaminated sites management principles contained in the Policy Framework for the Management of Assets and Acquired Services. Ongoing Maintain and upgrade the Federal Contaminated Sites Inventory (FCSI) based on data provided and certified by custodians. Ongoing Effective financial administration of the FCSAP program. Ongoing With EC, prepare FCSAP annual reports and work plan and conduct formative program evaluation. Ongoing Participate in the 2008 Federal Contaminated Sites National Workshop to support sharing of experiences and best practices within the federal contaminated sites community. Spring 2008	Continue to monitor implementation of the FCSAP program. Continue to work with custodians to improve the quality of data in the FCSI. Where appropriate, certify the completeness and accuracy of custodians' FCSI data. Collaborate with EC in developing the next five-year plan for the FCSAP program and in seeking Cabinet approval (current Cabinet authority expires March 31, 2010). With EC, prepare FCSAP annual reports and work plan, taking into account recommendations from the formative program evaluation conducted in 2008–09. Undertake planning for the 2010 Federal Contaminated Sites National Workshop to take place in Montréal in April 2010.

SDS Departmental Goal 3: Improve environmental stewardship of Secretariat operations

Federal SD goal, including GGO goals	Performance measurement from current SDS	Department's expected results for 2009-10
Reduce GHG emissions. GGO: Tenant departments and agencies will work with their facilities' providers to establish meaningful targets for the reduction of GHG emissions.	The percentage of reduction of GHG emissions is reported annually (based on 2005–06 utility figures for L'Esplanade Laurier). By 2007–09	A lighting retrofit at L'Esplanade Laurier, including the installation of motion sensors, is expected to be completed by PWGSC before March 31, 2009. Procedures for users will be developed concurrently and will be communicated to all employees. Additional conservation initiatives (such as reducing plug load and the number of space heaters) will also be introduced in the coming year to help the Secretariat meet its 5 per cent GHG reduction target at L'Esplanade Laurier (based on 2005–06 utility figures).
Reduce GHG emissions. GGO: Reduce GHG emissions per kilometer per vehicle from the departmental fleet by 15 per cent from 2005 calendar-year levels. GGO:All gasoline purchased for federal road vehicles will be ethanol blended, where available.	Annual average of GHG emissions per kilometer per vehicle (based on 2005 fleet composition baseline). By 2009 Percentage of ethanol-blended gasoline purchased for federal road vehicles (based on 2005–06 baseline). Ongoing	Given that all of the Secretariat's vehicles are in accordance with the Treasury Board Directive on Fleet Management: Executive Vehicles, the Secretariat will ensure continued compliance for all new vehicle purchases. Drivers of the shared Secretariat and Department of Finance Canada fleet will be provided with direction and resources to ensure that, whenever possible, ethanol-based fuels are purchased so as to meet the Secretariat's target of 90 per cent ethanol-blended gasoline purchase.
Canadian communities are actively engaged in sound environmental and natural resource management practices, stewardship initiatives, and biodiversity conservation. GGO: At a minimum, departments and agencies are encouraged to establish an internal green stewardship committee that reports to senior management.	Green Citizenship Network (GCN) membership is increased by 25 per cent, environmental initiatives are implemented, and associated environmental outcomes are identified. By 2009	Continue to increase GCN membership, to maintain a high number of opportunities for employee participation in green initiatives, and to pursue collaboration with other civic-engagement endeavours such as the Secretariat's Young Professionals Network (Renaissance).
Clear and effective governance mechanisms to integrate sustainable development into decision making.	Secretariat's Corporate Services Branch (CSB) undergoes a successful internal Environmental Management System audit. By 2009	The Environmental Management System Committee is expected to continue integrating greening objectives into CSB service delivery. The Committee is expected to continue meeting bimonthly.
To be a leader by integrating environmental performance considerations into procurement, including planning, acquisition, use, and disposal. GGO: All materiel managers and procurement personnel take green procurement training—either the Secretariat's Professional Development and Certification Program for the Procurement, Materiel Management, and Real Property Communities or other federal government green procurement courses.	Report annually on the percentage of materiel managers, procurement staff, and acquisition card holders trained. Ongoing All materiel managers and procurement staff are trained in green procurement. By 2008 Sixty per cent of acquisition card holders are trained in green procurement. By 2009	As all materiel and procurement personnel have taken green procurement training, the Secretariat will see that new personnel also get the requisite training. Ensure that at least sixty per cent of acquisition card holders will have received green procurement training by May 2009.
GGO:Set a minimum of three procurement targets over three years.	Report annually on the number of contracts issued, the quantities purchased (including total furniture purchases), and the dollar value of contracts and identify environmental outcomes, using total furniture purchases in the 2005–06 fiscal year as the baseline. By 2009 Report annually on the number of contracts issued, the quantities purchased, and the dollar value of contracts and identify environmental outcomes. By 2009 Report on the number of contracts issued, the quantities purchased, and the dollar value of contracts and identify associated environmental outcomes (i.e. energy), IM/IT support savings, and client and IM/IT support staff satisfaction by means of surveys and/or interviews. By 2008	To meet the target of a 50 per cent increase in the purchase of green office furniture, the Secretariat will continue to ensure that facilities management and procurement personnel use the mandatory Standing Offer Agreements (SOA) for furniture established by PWGSC (SOAs have environmental considerations built into them). To meet the Secretariat's objective of facilitating tracking and reporting of green procurement, training for procurement, materiel, and purchase personnel on the use of the green procurement field in the Integrated Financial and Materiel System (IFMS) should be developed by April 2009. In support of its commitment to adopting a multi-function document manager, the Secretariat expects to quantify the results of the one-year multi-function document manager pilot project (conducted in Pensions and Benefits Sector) and evaluate the costs and benefits for widespread use of this technology.
GGO: Other opportunities, such as waste management.	The Secretariat reports on the percentage of landfill waste diversion, based on the 2004 waste audit baseline for L'Esplanade Laurier. By 2007 Composting program that meets PWGSC guidelines is in place. By 2007	Continue to recycle glass, plastics, paper, CDs, DVDs, floppy, ZIP, and JAZZ disks, batteries, toner cartridges, inkjet cartridges, and wood pallets. Continue to compost paper hand towels. Continue to divert pulverized paper into horse bedding, which is eventually composted.

Table 3: Internal Audits

The following audits were included in the three-year Risk-based Audit Plan, approved in April 2008 and updated in September 2008. An annual review and update of planned audit engagements may result in modifications to the audit projects scheduled for 2009–10 and 2010–11.

Name of Internal Audit	Internal Audit Type	Status	Expected Completion Date
Audit of Accounts Verification	Assurance	In progress	June 2009
Audit of Secretariat Governance	Assurance	In progress	December 2009
Audit of Disability Insurance Plan	Assurance	In progress	December 2009
Audit of Human Resources Labour Relations	Assurance	Planned	April 2010
Audit of Management of Government-wide Votes	Assurance	Planned	September 2010
Audit of Security Information	Assurance	Planned	April 2010
Audit of Information Technology Security	Assurance	Planned	September 2010
Audit of Risk Management Framework	Assurance	Planned	April 2011
Audit of Values and Ethics	Assurance	Planned	April 2011
Audit of Management of Contracting	Assurance	Planned	April 2011
Audit of Management of Public Sector Pension Plans	Assurance	Planned	April 2011
Audit of Budget Office Systems Renewal	Assurance	Planned	April 2011

Table 4: Evaluations

As reported in the 2008–09 RPP, a five-year Risk-based Evaluation Plan has been developed and is expected to be approved before March 31, 2009. The plan will be updated on an annual basis and adjustments made accordingly.

Name of Evaluation	Program Type	Status	Expected Completion Date
Pilot Project for Non-lapsing Appropriations for Capital Asset Management		Planned	March 2010
Cabinet Directive on Streamlining Regulation		Planned	March 2010
Labour Relations—Public Service Modernization Act (PSMA) (in preparation for the PSMA legislative review)		Planned	March 2010
Policy Development and Implementation Process		Planned	March 2010
Compensation Management		Planned	March 2011
Joint Learning Program (JLP)		Planned	March 2011
Management of Central Funds		Planned	March 2011
Management of Government Security		Planned	March 2011
International Public Sector Standards Accounting Boards	Contributions	Planned	March 2011
Results-based Management and Evaluation		Planned	March 2012
Internal Audit		Planned	March 2012
Management of Pensions and Employee Benefits1		Planned	March 2012
Information Support to Government of Canada Expenditure Management and Oversight		Planned	March 2013
Expenditure Advice, Analysis, and Oversight		Planned	March 2013
Investment, Project, and Procurement Management		Planned	March 2013

1. Includes Vote 20 and a grants and contributions program (Special Indemnity Plan for Spouses of Canadian Forces Attachés) funded from Vote 20.

Table 5: Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ thousands)

Program Activity	Respendable Revenue	Forecast Revenue 2008–09	Planned Revenue 2009–10	Planned Revenue 2010–11	Planned Revenue 2011–12
Management Policy Development and Oversight	Revenue related to the administration of the Public Service Superannuation Act (PSSA)¹	3,912	3,980	—	—
Government-wide Funds and Public Service Employer Payments	Revenue related to Public Service Insurance²	297,000	302,200	307,100	307,100
Total Respendable Revenue		300,912	306,180	307,100	307,100

1. Respendable revenue is used to cover salaries and operating costs from Department 087—Public Service Superannuation in respect of chargeable costs associated with administering the PSSA. Treasury Board approval to renew this respendable revenue authority will be sought by 2010–11.

2. Respendable revenue is used to cover health care insurance plan costs from revolving funds and from departments and agencies that pay for employee benefit plans from a non-statutory appropriation. The recovery is based on 8.5 per cent of the total monthly personnel costs. This account is also used to record the pensioner's share of contributions to the Pensioners' Dental Services Plan.

Non-Respendable Revenue
($ thousands)

Program Activity	Non-Respendable Revenue	Forecast Revenue 2008–09	Planned Revenue 2009–10	Planned Revenue 2010––11	Planned Revenue 2011–12
Management Policy Development and Oversight	Revenue related to the administration of the Public Service Superannuation Act (PSSA)¹	891	899	—	—
Government-wide Funds and Public Service Employer Payments	Revenue from parking fees²	11,603	11,742	11,882	12,024
Total Non-Respendable Revenue		12,494	12,641	11,882	12,024
Total Respendable and Non-Respendable Revenue		313,406	318,821	318,982	319,124

1. This represents the non-respendable revenue portion received from Public Service Superannuation in respect of chargeable costs associated with administering the PSSA and covers the costs of employee benefit plans, health, and accommodation. Treasury Board approval to renew this respendable revenue authority will be sought by 2010–11.

2. This represents the parking fees collected from public service employees in government-owned or -leased facilities. This revenue is deposited directly to the Consolidated Revenue Fund and cannot be used to offset operating expenditures.

Table 6: User Fees

The Treasury Board of Canada Secretariat does not charge user fees other than for the processing of access requests filed under the Access to Information Act. The Secretariat's Access to Information and Privacy Office does not plan user fees. Fees are charged based on the nature of the request made under the Access to Information Act, which sets out the fee structure.

Departmental Planned Spending and FTEs

($ thousands)

Program Activity	Forecast Spending 2008–09	Planned Spending 2009–10	Planned Spending 2010–11	Planned Spending 2012–12
Management Policy Development and Oversight	101,172	103,329	97,010	96,807
Expenditure Management and Financial Oversight	35,269	36,615	34,708	34,706
Internal Services¹	53,256	61,513	56,860	56,840
Government-wide Funds and Public Service Employer Payments	4,615,161	7,861,900	5,045,535	5,045,033
Budgetary Main Estimates (gross)	4,804,858	8,063,357	5,234,113	5,233,386
Less: Respendable revenue²	(300,912)	(306,180)	(307,100)	(307,100)
Total Main Estimates	4,503,946	7,757,177	4,927,013	4,926,286
Adjustments
Estimates B
For Management Policy Development and Oversight3	3,799
For Expenditure Management and Financial Oversight4	4,697
For Internal Services5	5,633
For Government-wide Funds and Public Service Employer Payments6	1,944
Supplementary Estimates C
For Management Policy Development and Oversight7	201
Treasury Board transfers to departments and agencies8	(1,586,574)	(5,456,636)	(2,456,215)	(2,455,713)
Government-wide Funds available at year-end9	(930,972)
From Treasury Board Vote 15 for the Secretariat's Operations10	5,124	2,167	2,845	2,994
From Treasury Board Vote 25 for the Secretariat's Operations11	8,228
From Treasury Board Vote 30 for the Secretariat's Operations12	2,014
Expenditure Controls on Public Opinion Research
From Internal Services13	(180)	(180)	(180)	(180)
Budget 200914
For Management Policy Development and Oversight		12,065	14,915	15,200
For Internal Services		635	785	800
Total Adjustments	(2,486,086)	(5,441,949)	(2,437,850)	(2,436,899)
Total Planned Spending	2,017,860	2,315,228	2,489,163	2,489,387
Less: Non-respendable revenue	(12,494)	(12,641)	(11,882)	(12,024)
Plus: Cost of services received without charge	18,744	19,035	19,658	20,287
Total Departmental Spending	2,024,110	2,321,621	2,496,939	2,497,650
FTEs	1,520	1,714	1,656	1,656

1. Beginning with the 2009–10 Annual Reference Level Update (ARLU), the resources within the Internal Services program activity will no longer be distributed among the remaining program activities as it was the case for previous Main Estimates.

2. Respendable revenue is used to cover the costs incurred by the Secretariat on behalf of other government departments for shared initiatives such as the Public Service Superannuation Account Pension Fund (Vote 1) and Public Service Insurance (Vote 20). Treasury Board approval to renew the respendable revenue authority for the Public Service Superannuation Account Pension Fund will be sought by 2010–11.

3. Supplementary Estimates B adjustments for Management Policy Development and Oversight include the following initiatives: Vote 1 – Funding to support pay equity litigation ($985.8K), funding to support Labour Relations and Compensation Operations in carrying out its responsibilities for the remainder of 2008–09 and also for the Classification Reform Program ($2,008K), and transfer from Public Works and Government Services Canada (PWGSC) for the Organizational Readiness Office ($805K).

4. Supplementary Estimates B adjustments for Expenditure Management and Financial Oversight include the following initiatives: Vote 1 – Funding to support pay equity litigation ($722.9K) and funding to improve core business processes and integrate expenditure management information—BOSR project ($3,974K).

5. Supplementary Estimates B adjustments for Internal Services include the following initiatives: Vote 1 – Funding to support pay equity litigation ($4,863K), funding to maintain the capacity and integrity of current labour relations work for the remainder of 2008–09 and to continue the Classification Reform Program ($395K), transfer from PWGSC for the Organizational Readiness Office ($130K), and transfer from Canada Revenue Agency to support activities that are essential to the continued implementation of the Public Service Modernization Act ($245K).

6. Supplementary Estimates B adjustments for the Public Service Insurance include: Vote 20 – Funding to support a joint learning program with the Public Service Alliance of Canada to improve labour-management relations ($1,944K).

7.  Supplementary Estimates C adjustment for Management Policy Development and Oversight include the following: Vote 1 – Funding for the management of the Royal Canadian Mounted Police's life and disability insurance plans and transfer from the Royal Canadian Mounted Police.

8. Estimated transfers to departments and agencies in Government-wide Funds and Public Service Employer Payments: Vote 5—Government Contingencies $750,000K in 2009–10, 2010–11, and 2011–12; Vote 10—Government-wide Initiatives $6,636K in 2009–10, $6,215K in 2010–11, and $5,713K in 2011–12; Vote 25—Operating Budget Carry Forward $1,086,574K in 2008–09 and $1,200,000K in 2009–10, 2010–11, and 2011–12; Vote 30—Paylist Requirements $500,000K in 2008–09, 2009–10, 2010–11, and 2011–12; and Vote 35—Budget Implementation Initiatives, the new Treasury Board Central Vote for the implementation of certain programs included in Budget 2009, $3,000,000K in 2009–10 only.

9. Estimated surplus in Government-wide Funds and Public Service Employer Payments: Vote 5—Government Contingencies ($750,000K); Vote 10—Government-Wide Initiatives ($7,141K); Vote 20—Public Service Insurance ($60,405K); and Vote 25—Operating Budget Carry Forward ($113,425K).

10. The transfer from Treasury Board Vote 15 is for collective bargaining agreements and was distributed to Vote 1 and the program activities as follows: $2,839.1K in 2008–09, $1,083.4K in 2009–10, $1,422.4K in 2010–11, and $1,497.2K in 2011–12 to Management Policy Development and Oversight; $983.8K in 2008–09, $411.7K in 2009–10, $540.5K in 2010–11, and $568.9K in 2011–12 to Expenditure Management and Financial Oversight; and $1,300.9K in 2008–09, $671.7K in 2009–10, $881.9K in 2010–11, and $928.2K in 2011–12 to Internal Services.

11. The transfer from Treasury Board Vote 25 is for the Operating Budget Carry Forward and was distributed to Vote 1 and the program activities as follows: $4,279K to Management Policy Development and Oversight, $1,563K to Expenditure Management and Financial Oversight, and $2,386K to Internal Services.

12. The transfer from Treasury Board Vote 30 is for the Paylist Requirements and was distributed to Vote 1 and the program activities as follows: $1,047.4K to Management Policy Development and Oversight, $382.7K to Expenditure Management and Financial Oversight, and $584.15K to Internal Services.

13. Ongoing reference level reduction as part of a government-wide expenditure control decision to help reduce expenditures on Public Opinion Research (POR) in Vote 1.

14. Budget 2009 adjustments include the following initiatives: Vote 1 – Funding to support the transformation of group insurance plans for the public service—$3,040K in 2009–10, $3,990K in 2010–11, and $4,275K in 2011–12 to Management Policy Development and Oversight and $160K in 2009–10, $210K in 2010–11, and $225K in 2011–12 to Internal Services; and Vote 1 – Funding to support the modernization of pay equity—$9,025K in 2009–10, $10,925K in 2010–11, and $10,925K in 2011–12 to Management Policy Development and Oversight and $475K in 2009–10, $575K in 2010–11, and $575K in 2011–12 to Internal Services.

Future-oriented Financial Information

Treasury Board of Canada Secretariat
Future-oriented Statement of Operations
For the year ended March 31, 2010

Statement of Management Responsibility for Financial Statements

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010, rests with the management of the Treasury Board of Canada Secretariat (Secretariat). The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of the Estimates (Reports on Plans and Priorities) and will be used in the Secretariat's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based on information available and known to management at the time of development, reflect current business and economic conditions, and assume the continuation of current governmental priorities and consistency in the departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends. The actual results achieved will vary from the forecast information presented, and this variation could be material.

The readers should be advised that the Secretariat is preparing this statement as part of pilot project involving ten departments. This is the first year of a two-year project to develop the methodology to prepare departmental future-oriented financial statements.

Original signed by Wayne G. Wouters Secretary of the Treasury Board Ottawa, Canada Dated: February 16, 2009

Original signed by Kelly Gillis, CA Assistant Secretary and CFO Ottawa, Canada Dated: February 16, 2009

Treasury Board of Canada Secretariat
Future-oriented Statement of Operations
For the year ended March 31

	Forecast 2010 ($ thousands)
Expenses (Note 6)
Government-wide Funds and Public Service Employer Payments	2,112,764
Expenditure Management and Financial Oversight	41,856
Management Policy Development and Oversight	126,179
Internal Services	72,660
	2,353,459
Revenues (Note 7)
Government-wide Funds and Public Service Employer Payments	11,762
Expenditure Management and Financial Oversight	—
Management Policy Development and Oversight	4,879
Internal Services	—
	16,641
Net Cost of Operations	2,336,818

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

Treasury Board of Canada Secretariat
Notes to the Future-oriented Financial Information
For the year ended March 31

1. Authority and Objectives

Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. It is headed by a secretary, who reports to the president of the Treasury Board.

The mission of the Secretariat is to ensure that the rigorous stewardship of public resources achieves results for Canadians.

The core business of the Secretariat is currently organized into the following key program activities:

a) Government-wide Funds and Public Service Employer Payments

Funds are held centrally to supplement other appropriations, and payments and receipts are made on behalf of other federal government departments and agencies in an administratively sound and efficient manner.

b) Expenditure Management and Financial Oversight

The Secretariat exercises a budget office role and undertakes the following key functions to support this role:

• Providing advice to ministers with respect to resource allocation and re-allocation and the provision of expenditure authorities;
• Undertaking government-wide expenditure and performance analysis and oversight of estimates and government supply; and
• Ensuring that accurate and timely financial and performance information from departments and agencies is available and reported to support Public Accounts and budget office functions.

c) Management Policy Development and Oversight

Through this program activity, the Secretariat provides support to the Treasury Board in both its role as employer of the core public administration and its role as the management board of government, while also promoting good management practices across government.

The Secretariat supports the Treasury Board in its management board role by:

• Developing polices, directives and standards to guide good management across government;
• Monitoring compliance and developing tools to measure and report on management performance; and
• Providing advice and support to functional communities.

d) Internal Services

This program activity is intended to ensure that the Secretariat is well managed and accountable, and resources are allocated to achieve results. This includes the following key functions related to supporting Treasury Board and the internal management of the Secretariat:

• Ensuring effective and efficient corporate services;
• Ensuring effective corporate governance and accountability;
• Providing integrated support to Treasury Board; and
• Advising on the communication of policies, programs, and services and providing effective internal and external communications.

2. Underlying Assumptions

These future-oriented statements have been prepared:

• As at February 13, 2009, including elements of Budget 2009 where a reasonable estimate could be defined;
• On the basis of government policies, government priorities, and the external environment at the time the future-oriented financial information was finalized;
• According to the requirements of Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector;
• On the basis that the resources provided will enable the Secretariat to deliver the expected results specified in its Report on Plans and Priorities; and
• On the basis of historical costs.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for 2009–10, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

These financial statements do not reflect the most recent decisions on the horizontal review of the central human resources management and policy functions as announced in the federal budget.

On February 6, 2009, the Prime Minister announced changes to streamline and improve the management of human resources in the Public Service of Canada. As a result, the Canada Public Service Agency will no longer operate as a separate entity. It will be housed within the Secretariat under the new Office of the Chief Human Resources Officer. This will impact the financial results of the Secretariat for fiscal year 2009–10 onward. The financial impact of this decision is not reflected in these statements.

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

4. Summary of Significant Accounting Policies

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

a) Parliamentary appropriations

The Secretariat is financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles because appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations are not necessarily the same as those provided through appropriations from Parliament. Note 5 provides a high-level reconciliation between the bases of reporting.

b) Net cash provided by the Government of Canada

The Secretariat operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Secretariat is deposited to the CRF and all cash disbursements made by the Secretariat are paid from the CRF. The net cash provided by the Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments and agencies of the federal government.

c) Forecasted revenues

Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues took place.

d) Forecasted expenses

Expenses are recorded on the accrual basis:

• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services provided without charge by other government departments for accommodation and legal services are recorded as operating expenses at their estimated cost.

e) Government-wide employee benefits

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

The Government of Canada also sponsors a variety of other benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. These benefits are recognized to expenses when they become due. A portion of these benefits is also recovered from other departments and agencies.

For the pension benefits and other future employee benefits covered by these plans, actuarially determined liabilities and related disclosure are presented in the financial statements of the Government of Canada, the ultimate sponsor of these benefits. As administrator of the centrally managed funds, the Secretariat expenses these benefits or contributions as they become due and records no accruals for future benefits. This accounting treatment corresponds to the funding provided to the department through parliamentary appropriations.

f) Departmental employee future benefits

Pension benefits: Eligible employees of the Secretariat participate in the Public Service Pension Plan. The Secretariat's share of contributions pertaining to the current service cost of its employees is allocated to the expenses of all program activities except for Government-wide Funds and Public Service Employer Payments.

Severance benefits: Employees are entitled to severance benefits, as provided for under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees of the Secretariat is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.

g) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Secretariat does not capitalize intangibles, works of art, and historical treasures that have cultural, aesthetic, or historical value.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization period
Machinery and equipment	3 to 10 years
Motor vehicles	3 years
Leasehold improvements	Term of lease
Assets under construction	Once in service, in accordance with asset class

h) Measurement uncertainty

The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the reported amounts of all the assets, liabilities, revenues, and expenses reported in the future-oriented financial statements. Assumptions are based on information available and known to management at the time of development, reflect current business and economic conditions, and assume the continuation of current governmental priorities and consistency in the departmental mandate and strategic objectives. At the time of preparation of the future-oriented statement of operations, management believes the estimates and assumptions to be reasonable. However, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. Parliamentary Appropriations

The Secretariat receives most of its funding through annual parliamentary appropriations. Items recognized in the Statement of Operations in one year may be funded through parliamentary appropriations in 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:

a) Reconciliation of net cost of operations to appropriations used

	Forecast 2010 ($ thousands)
Net cost of operations	2,336,818
Adjustment for items affecting net cost of operations but not affecting appropriations:
Add (Less):
Services provided without charge from other government departments	(19,035)
Revenue not available for spending	12,661
(Increase) in vacation pay and compensatory leave	(805)
(Increase) in employee severance benefits	(3,161)
Amortization of tangible capitals assets	(1,551)
	(11,891)
Appropriations used	2,324,927

b) Appropriations provided and used

	Forecast 2010 ($ thousands)
Voted Authorities:
Vote 1—Program expenditures	175,374
Vote 5—Government Contingencies	750,000
Vote 10—Government-Wide Initiatives	6,636
Vote 20—Public Service Insurance	2,103,044
Vote 25—Operating Budget Carry Forward	1,200,000
Vote 30—Paylist Requirements	500,000
Vote 35—Budget Implementation Initiatives	3,000,000
	7,735,054
Statutory Authorities:
President of the Treasury Board—Salary and motor car allowance	78
Contributions to employee benefit plans	22,024
Payments under the Public Service Pension Adjustment Act	20
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act	200
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts, and the Employment Insurance Act	9,500
Spending of proceeds from the disposal of surplus Crown assets	—
	31,822
Pending Approval:
Vote 1—Program expenditures	14,687
	14,687
Lapsed Authorities:
Vote 1—Program expenditures	—
Vote 20—Public Service Insurance	—
	—
Transferred or Lapsed Authorities:
Vote 5—Government Contingencies	(750,000)
Vote 10—Government-Wide Initiatives	(6,636)
Vote 25—Operating Budget Carry Forward	(1,200,000)
Vote 30—Paylist Requirements	(500,000)
Vote 35—Budget Implementation Initiatives	(3,000,000)
	(5,456,636)
Appropriations used	2,324,927

6. Forecasted Expenses

a) Details of expenses by category and by program activity

		Forecast 2010 ($ thousands)
	Total	G-WF&PSEP1	EM&FO2	MPD&O3	IS4
Transfer payment	200	—	—	200	—
Operating expenses:
Government-wide Funds and Public Service Employer Payments (Note 6b)	2,110,820	2,110,820	—	—	—
Salary and employee benefits	163,792	—	30,890	91,607	41,295
Professional and special services	43,912	—	4,994	19,498	19,420
Accommodation	15,949	—	2,573	7,484	5,892
Transportation and telecommunications	4,986	—	609	2,383	1,994
Machinery, equipment, parts, and tools	3,457	—	423	1,650	1,384
Repairs and maintenance	3,293	—	402	1,574	1,317
Utilities, materiel, and supplies	1,131	—	138	540	453
Information	659	—	103	401	155
Rentals	751	—	92	358	301
Amortization	1,551	—	1,508	—	43
Other subsidies and payment	2,958	1,944	124	484	406
	2,353,259	2,112,764	41,856	125,979	72,660
Total Expenses	2,353,459	2,112,764	41,856	126,179	72,660

1. Government-wide Funds and Public Service Employer Payments
2. Expenditure Management and Financial Oversight
3. Management Policy Development and Oversight
4. Internal Services

b) Government-wide funds and public service employer payments

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat funds the employer's contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, including additional contributions in respect of actuarial deficiencies.

The Secretariat also funds payments to or in respect of:

• The employer's share of contributions to the Public Service Death Benefit Account;
• The employer's share of Canada/Quebec Pension Plan contributions and Employment Insurance premiums;
• The employer's share of health, disability, and life insurance premiums and related Quebec sales tax;
• Claims and related costs under the Public Service Dental Care Plan and the Pensioners' Dental Services Plan;
• Provincial payroll taxes;
• Pension, benefit, and insurance plans for employees engaged locally outside Canada by Canadian missions abroad; and
• Returns to certain employees of their share of the Employment Insurance premium reduction.

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Quebec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds pro-rata, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies and all revolving funds based on a percentage of salaries and wages incurred.

A breakdown by major category is as follows:

	Forecast 2010 ($ thousands)
Expenses:
Public Service Pension Plan and Retirement Compensation Arrangement contributions	2,254,463
Public Service Pension Plan and Retirement Compensation in respect of actuarial deficits	9,500
Public Service Death Benefit Account contributions	17,798
Canada/Quebec Pension Plan contributions	582,976
Employment Insurance premiums	267,288
Employment Insurance premiums reduction	1,300
Quebec Parental Insurance Plan premiums	28,000
Public Service Health Care Plan premiums	967,956
Public Service Dental Care Plan claims	253,928
Pensioners' Dental Services Plan claims	116,238
Provincial Health Insurance Plan premiums	40,123
Provincial payroll taxes	505,806
Group disability and life insurance premiums	441,054
Pension and other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad	48,360
Pension and similar payments to former government employees (transfer payment)	520
Miscellaneous special payments	200
Operating expenses	—
	5,535,510
Recoveries:
Employer's contributions to government employee benefit plans recovered from government departments and agencies	3,122,525
Employer's contributions to government employee insurance plans recovered from government departments and agencies	132,000
Employees' contributions to Public Service Health Care Plan recovered from government departments and agencies	125,165
Pensioners' contributions to the Pensioners' Dental Services Plan	45,000
	3,424,690
Net Expenses	2,110,820

7. Forecasted Revenues

The following table presents details of revenues by category and by program activity:

		Forecast 2010 ($ thousands)
	Total	G-WF&PSEP	M&FO	MPD&O	IS
Parking fees	11,742	11,742	—	—	—
Recovery of pension administration costs	4,879	—	—	4,879	—
Other revenues	20	20	—	—	—
Total Revenues	16,641	11,762	—	4,879	—

8. Related-Party Transactions

Services provided without charge

The Secretariat is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Secretariat enters into transactions with these entities in the normal course of business and on normal trade terms.

During the year, the Secretariat received without charge services from other departments as shown in the following table:

	Forecast 2010 ($ thousands)
Accommodation	15,949
Legal services	3,086
Total	19,035

The government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all departments without charge. The cost of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada (PWGSC), are not included as an expense in the Statement of Operations. The forecast is the amount provided by the Department of Justice Canada and PWGSC.

Canada Public Service Agency voted and statutory items displayed in the Main Estimates
($ millions)

Vote Number or Statutory Item (S)	Truncated Vote or Statutory Wording	2009–10 Main Estimates1 & 2	2008–09 Main Estimates
55	Program expenditures	61.1	64.6
(S)	Contribution to employee benefit plans	7.8	8.3
Total		68.9	72.9

1.  The 2009–10 Main Estimates for the Agency are $68.9M, a net decrease of $4.0M over 2008–09. The major changes are as follows:
Increase of $1.6M—Joint Learning Program, Public Service Alliance of Canada and the Agency
Increase of $1.4M—Support of pay equity litigation
Increase of $1.0M—Compensation for collective agreements, employee benefit plan (EBP) adjustments, and other
Decrease of $4.7M—Four-year Values and Ethics program ending on March 31, 2009
Decrease of $3.3M—Implementation of Public Service Modernization Act (PSMA)

2.  Human Resources Horizontal Review: The difference of $13.5M between the 2009–10 Main Estimates of $68.9M and the 2009–10 planned spending (before allowance for services received without charge) of $55.4M is due to the strategic review savings announced in Budget 2009.

Order in Council creating the Office of the Chief Human Resources Officer within Treasury Board Secretariat

PC Number	Date	Chapter	Bill	Dept
2009-0181	2009-02-06			PMO

Public Service Rearrangement and Transfer of Duties Act

Amalgamation and combination of the PUBLIC SERVICE HUMAN RESOURCES MANAGEMENT AGENCY OF CANADA with the TREASURY BOARD under the President of the Treasury Board and under the Secretary of the Treasury Board, effective March 2, 2009.

Registration: SI/2009-0010

Her Excellency the Governor General in Council, on the recommendation of the Prime Minister, pursuant to paragraph 2(b) of the Public Service Rearrangement and Transfer of Duties Act, hereby amalgamates and combines the Public Service Human Resources Management Agency of Canada with the Treasury Board under the President of the Treasury Board and under the Secretary of the Treasury Board, effective March 2, 2009.