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Section III: Supplementary Information

Organizational Information

The School is a departmental corporation whose legislative mandate flows from the Canada School of Public Service Act (the former CCMD Act, as amended by the Public Service Modernization Act).

Organization and Accountability

The School’s Strategic Outcome – Public servants have the common knowledge and leadership and management competencies required to effectively serve Canada and Canadians – is supported by three program activities:

• Public servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment
• Public Service has strong leaders delivering results for Canadians; and
• Public Service innovates to achieve excellence in delivering results for Canadians.

The School’s organizational structure is loosely aligned with the Program Activity Architecture and includes

• Three major operational sectors – Individual Learning, Organizational Leadership & Innovation and the Registrar; and
• Four administrative focal points – Planning, Governance & Communications; Corporate Services; Human Resources and the Ombudsperson.

The figure below highlights the elements of the organization:

Responsibility

Individual Learning	Required Training (Orientation and Authority Delegation Training) Functional Communities (design and development) Leadership and career development for managers program Professional and Management Development Language Training Blended Learning
Organizational Leadership and Innovation	Innovation in Public Management Leadership Development Programs and Design Senior Leaders Program Advanced Leadership Program Strategic Organizational Change, International Visiting and Academic Fellows
Registrar	Registration Evaluation Departmental Client Relations Regional Operations
Planning, Governance & Communications	Strategic Policy and Planning Market Analysis Corporate Communications and Promotions Governance Conferences and Special Events
Corporate Services	Information Management and Technology Financial Management Administration
Human Resources	Strategic HR Planning and Programs Labour – Management Relations HR Operations Ombudsman

Governance

The School has implemented a systematic governance model. It includes:

• A Board of Governors that is established in legislation and is responsible for the conduct and management of the School; chaired by the Clerk of the Privy Council and Secretary to Cabinet, the Board of Governors meets at least twice during each fiscal year;
• The position of President which is also established in legislation; the President is the chief executive officer of the School and is responsible for supervision over and direction of the work and staff of the School;
• A Senior Executive Committee which meets periodically to establish priorities and approve budgets, oversee the implementation of the strategic directions set by the Board of Governors and report to the Board on the School’s operation;
• An Operations Committee which focuses on the coordination and harmonization of operational and policy issues within the School, and oversees the delivery of the School’s core business;
• A Management Committee to assist with the operations of the School. The Committee meets periodically to inform managers of the Board’s decisions on strategic directions and priorities and to provide a forum for the discussion of progress in implementing priorities;
• An Internal Audit and Evaluation Committee to oversee the School’s corporate management framework, address horizontal management issues, and review and approve key corporate management documents; and
• A Human Resources Committee responsible for the review of proposed staffing strategies and, in accordance with School policies, recommend for approval by the President various HR requests. The Committee advises the Executive Committee on emerging issues and trends with respect to human resources strategies within the School.

Operational Flexibilities

The School is a departmental corporation whose legislative mandate flows from the Canada School of Public Service Act. The School’s most significant flexibilities, as a departmental corporation, are:

• Revenue Respending Authority – 18(2)
  Subject to any condition imposed by the Treasury Board, the revenue from fees received by the School in a fiscal year through the conduct of its operations may be spent by the School for its purposes in that, or the next, fiscal year;
• Staffing Authority – 15(2)
  The President may, on behalf of the School, appoint and employ teaching and research staff and may, with the approval of the Treasury Board, establish the terms and conditions of their employment, including their remuneration; and
• Intellectual Property Management Authority – 18(1)
  The Board may, with the approval of the Treasury Board, prescribe the fees or the manner of determining the fees to be charged by the School when selling, licensing the use of or otherwise making available any copyright, trade–mark or other similar property right held, controlled or administered by the School.

For additional information see:
http://www.myschool–monecole.gc.ca/about/gov_struc_e.html.

Financial Tables

Table 1: Comparison of Planned to Actual Spending (including Full–time Equivalents)

This table offers a comparison of the Main Estimates, Planned Spending, Total Authorities, and Actual Spending for the most recently completed fiscal year, as well as historical figures for Actual Spending.

The $2.1million decrease in 2006–2007 from Main Estimates ($111.2M) to Planned Spending ($109.1M) is the result of reductions related to funding for Learning in the Public Sector and the expenditure review on procurement.

The $27 million increase in 2006–2007 from Planned Spending ($109.1M) to Total Authorities ($136.1M) is mainly due to:

Increase in revenues Revenue carry forward Operating Budget carry forward Compensation for salary adjustments

$12.6M $9.7M $1.7M $0.5M

The $23.1 million difference in 2006–2007 between Total Authorities ($136.1M) and Actual Spending ($113M) is made up of: revenues to be carried forward to fiscal year 2007–2008 according to section 18(2) of the Canada School of Public Service Act; and lapses in the normal course of business.

The $12.6 million increase in spending from 2005–2006 ($100.4M) to 2006–2007 ($113M) can be accounted for by: an increase in the level of funding for Learning in the Public Sector; and a decrease due to the end of funding for the Public Service Modernization Act.

The $21 million increase in spending from 2004–2005 ($79.4M) to 2005–2006 ($100.4M) is mainly due to new funding for Learning in the Public Sector and the Public Service Modernization Act, as well as compensation for salary adjustments.

($ thousands)	2004–05 Actual	2005–06 Actual	2006–07
			Main Estimates	Planned Spending	Total Authorities	Total Actuals
New Program Activities
Public Servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment				79,106	92,590	76,902
Public Service has strong leaders delivering results for Canadians				14,908	24,309	19,850
Public Service organizations innovate to achieve excellence in delivering results for Canadians				15,110	19,201	16,285
Old Program Activities
Develop, Manage, Disseminate of Knowledge Products	8,851	16,564	16,949	Note 1	Note 1	Note 1
Manage the Provision of Learning Services	70,597	83,787	94,236	Note 1	Note 1	Note 1
Total	79,448	100,351	111,185	109,124	136,100	113,037
Less: Non–respendable revenue (note 2)	(12,000)	(6,143)	N/A	N/A	(480)	N/A
Less: Respendable revenue (pursuant to section 18(2) of the CSPS act) (note 2)	(11,496)	(19,474)	(20,000)	(20,000)	(42,341)	(26,750)
Plus: Cost of services received without charge (3)	7,256	12,024	N/A	12,568	N/A	12,648
Total Departmental Spending	63,208	86,758	91,185	101,692	93,279	98,935
Full–time Equivalents	732.6	844.0	N/A	930.0	N/A	966.0

Notes:

(1) Adjustments have been made to the program activity architecture for the Canada School of Public Service due to a change in focus of its mandate. As a result, the program activity Develop, Manage, Disseminate Knowledge Products and the program activity Manage the Provision of Learning Services have been replaced with three new program activities which better reflect the business model of the School. (see Table 2: Crosswalk)

(2) Table 5 contains further details on respendable and non–respendable revenues.

(3) Table 4 contains further details on Cost of services received without charge

Table 2A: Resources by Program Activity

Adjustments have been made to the program activity architecture for the Canada School of Public Service due to a change in focus of its mandate. As a result, the program activity Develop, Manage, Disseminate Knowledge Products and the program activity Manage the Provision of Learning Services have been replaced with three new program activities which better reflect the business model of the School.

	New Program Activities
Old Program Activities	Public servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment	Public Service has strong leaders delivering results for Canadians	Public Service organizations innovate to achieve excellence in delivering results for Canadians	Total
2006–2007 Main Estimates ($ thousands)
Develop, Manage and Disseminate Knowledge Products	7,410	2,419	7,120	16,949
Manage the Provision of Learning Services	73,677	12,529	8,030	94,236
Total	81,087	14,948	15,150	111,185

Table 2B: Resources by Program Activity

The following table provides information on how resources are used for the most recently completed fiscal year.

($ thousands)

2006–07
Program Activity	Budgetary
	Operating	Contributions and Other Transfer Payments	Total: Gross Budgetary Expenditures	Less: Respendable Revenue	Total: Net Budgetary Expenditures
Public Servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment
Main Estimates	81,087		81,087	(10,233)	70,854
Planned Spending	79,106		79,106	(10,233)	68,873
Total Authorities	92,590		92,590	(30,268)	62,322
Actual Spending	76,902		76,902	(19,123	57,779
Public Service has strong leaders delivering results for Canadians
Main Estimates	14,948		14,948	(4,731)	10,217
Planned Spending	14,908		14,908	(4,731)	10,177
Total Authorities	24,309		24,309	(8,328)	15,981
Actual Spending	19,850		19,850	(5,261)	14,589
Public Service organizations innovate to achieve excellence in delivering results for Canadians
Main Estimates	14,850	300	15,150	(5,036)	10,114
Planned Spending	14,810	300	15,110	(5,036)	10,074
Total Authorities	18,885	316	19,201	(3,745)	15,456
Actual Spending	15,969	316	16,285	(2,366)	13,919
Total
Main Estimates	110,885	300	111,185	(20,000)	91,185
Planned Spending	108,824	300	109,124	(20,000)	89,124
Total Authorities	135,784	316	136,100	(42,341)	93,759
Actual Spending	112,721	316	113,037	(26,750)	86,287

Table 3: Voted and Statutory Items

This table primarily replicates the summary table listed in the Main Estimates. Resources are presented to Parliament in this format. Parliament approves the voted funding and the statutory information is provided for information purposes

($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	2006–07
		Main Estimates	Planned Spending (1)	Total Authorities (2)	Total Actuals (3)
25	Operating expenditures	84,641	82,580	85,098	77,626
(S)	Contributions to employee benefit plans	6,544	6,544	8,642	8,642
(S)	Spending of revenues	20,000	20,000	42,341	26,750
(S)	Spending of proceeds from the disposal of surplus Crown assets	–	–	19	19
	Total	111,185	109,124	136,100	113,037

(1) Planned Spending is from the 2006–2007 Report on Plans and Priorities (RPP)
(2) The Total Authorities refers to the total spending authorities received during this fiscal year (i.e. through Main Estimates, Supplementary Estimates, Statutory Authorities)
(3) The Total Actuals can be found in the 2006–2007 Public Accounts
(S) Indicates expenditures the Department is required to make that do not require an appropriation act

Table 4: Services Received Without Charge

($ thousands)	2006–07 Actual Spending
Accommodation Provided by Public Works and Government Services Canada	8,499
Contributions covering the employer’s share of employees’ insurance premiums and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds); employer’s contribution to employees’ insured benefits plans and associated expenditures paid by the Treasury Board of Canada Secretariat	4,419
Total 2006–07 Services received without charge	12,648

Table 5: Sources of Respendable and Non–respendable Revenue

Respendable Revenue:
Planned Revenues are those forecasted to be collected at the time of the publication of the 2006–2007 Report on Plans and Priorities. Total Authorities are the revenues collected in 2006–2007 plus the carry forward of collected revenues in 2005–2006 pursuant to section 18(2) of the Canada School of Public Service Act. The Actuals are the level of revenues expended in 2006–2007. The $15.6 million variance between Total Authorities and the Actuals will be carried forward to year two (i.e. 2007–2008)

Non–Respendable Revenue:
The Actuals reflected for 2004–2005 and 2005–06 are based on the previous Canadian Centre for Management Development (CCMD) non–respendable revenue forecasts. The Total Authorities in 2006–07 are revenues collected which are not eligible to be respent by the School.

($ thousands)	Actual 2004–05	Actual 2005–06	2006–07
			Main Estimates	Planned Revenue	Total Authorities	Actual
Public servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment				10,233	30,268	19,123
Public Service has strong leaders delivering results for Canadians				4,731	8,328	5,261
Public Service organizations innovate to achieve excellence in delivering results for Canadians				5,036	3,745	2,366
Develop, Manage, Disseminate Knowledge Products	1,069	3,093	1,592
Manage the Provision of Learning Services	10,427	16,381	18,408
Total Respendable Revenue	11,496	19,474	20,000	20,000	42,341	26,750

Non–respendable Revenue

($ thousands)	Actual 2004–05	Actual 2005–06	2006–07
			Main Estimates	Planned Revenue	Total Authorities	Actual
Canada School of Public Service	12,000	6,143	N/A	N/A	480	N/A
Total Non–respendable Revenue	12,000	6,143	N/A	N/A	480	N/A

Table 6: Resource Requirements by Branch or Sector

($ thousands)

2006–07
Branch	Public servants able to perform in their current job, take on the challenges of the next job in a dynamic, bilingual environment	Public Service has strong leaders delivering results for Canadians	Public Service organizations innovate to achieve excellence in delivering results for Canadians	Total
President’s Office
Planned Spending	402	43	98	543
Actual Spending	732	171	80	983
Corporate Services
Planned Spending	11,731	1,106	988	13,825
Actual Spending	11,003	6,210	459	17,672
Human Resources
Planned Spending	2,128	230	518	2,876
Actual Spending	3,173	741	345	4,259
Planning, Governance & Communications
Planned Spending	8,228	890	2,001	11,119
Actual Spending	2,763	542	3,237	6,542
Individual Learning
Planned Spending	45,907	2,034	652	48,593
Actual Spending	44,108	4,721	664	49,493
Organizational Leadership & Innovation
Planned Spending	1,303	10,605	5,692	17,600
Actual Spending	76	7,465	3,604	11,145
Registrar and Regional Operations
Planned Spending	9,406		5,162	14,568
Actual Spending	15,048		7,895	22,943
Total
Planned Spending	79,105	14,908	15,111	109,124
Actual Spending	76,903	19,850	16,284	113,037

Table 7: User Fees

User Fee	Fee Type	Fee–setting Authority	Date Last Modified	2006–2007					Planning Years
				Forecast Revenue $0	Actual Revenue $0	Full Cost $0	Performance Standard	Performance Results	Fiscal Year	Forecast Revenue $0	Estimated Full Cost $0
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Other products and services (O)	Access to Information Act	1992	0.20	0.19	70.08	Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request	30 day processing standard met	2007–2008 2008–2009 2009–2010	0.25 0.25 0.25	70.08 70.08 70.08

Table 8: Financial Statements (unaudited) for the year ended March 31, 2007

Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2007 and all information contained in these statements rests with the management of the Canada School of Public Service ("the School"). These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgement and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the School’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the School’s Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act and the Canada School of Public Service Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

The financial statements of the School have not been audited.

________________________		________________________
Jamie Tibbetts Senior Financial Officer		Ruth Dantzer President and CEO

Ottawa, Canada

__________________ 2007

Canada School of Public Service

Statement of Operations (Unaudited)

For the year ended March 31

(in thousands of dollars)

	2007				2006
	Knowledge Products Program	Learning Services Program	Total		Total
Transfer payments	316	–	316		160
Operating expenses
Salaries and employee benefits	13,240	56,035	69,275		63,063
Professional and special services	5,328	27,095	32,423		25,800
Rental of accommodation and equipment	1,506	9,971	11,477		10,518
Transportation and telecommunications	781	4,351	5,132		3,769
Small equipment and parts	785	2,333	3,118		3,753
Utilities, materials and supplies	204	2,043	2,247		1,724
Loss on write–off of tangible capital assets	170	964	1,134		–
Printing and publishing	82	795	877		1,855
Amortization of tangible capital assets	121	688	809		551
Repair and maintenance	41	264	305		554
Other operating expenses	5	123	128		65
Total Operating expenses	22,263	104,662	126,925		111,652
Total Expenses	22,579	104,662	127,241		111,812
Revenues
Sales of Goods and Services	1,706	31,353	33,059		31,717
Other Revenues	7	39	46		34
Total Revenues	1,713	31,392	33,105		31,751
Net Cost of Operations	20,866	73,270	94,136		80,061

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

Statement of Financial Position (Unaudited)

At March 31

(in thousands of dollars)

	2007	2006
Assets
Financial assets
Accountable advances	11	25
Accounts receivable	6,882	2,007
Total financial assets	6,893	2,032
Non-financial assets
Prepaid expenses	150	-
Inventories	-	78
Tangible capital assets (Note 4)	4,707	4,707
Total non-financial assets	4,857	4,785
Total	11,750	6,817
Liabilities
Accounts payable and accrued liabilities	21,384	18,720
Provision for vacation leave	3,003	2,250
Employee severance benefits (Note 5)	8,641	6,710
Other liabilities	6	20
Total liabilities	33,034	27,700
Equity of Canada	(21,284)	(20,883)
Total	11,750	6,817

Contractual obligations (Note 6)
The accompanying notes form an integral part of these financial statements.

Statement of Equity of Canada (Unaudited)

For the year ended March 31

(in thousands of dollars)

	2007	2006
Equity of Canada, beginning of year	(20,883)	(22,532)
Net cost of operations	(94,136)	(80,061)
Current year appropriations used (Note 3a)	113,037	100,352
Change in net position in the Consolidated Revenue Fund (Note 3c)	(31,950)	(30,666)
Services provided without charge by other government departments (Note 7)	12,648	12,024
Equity of Canada, end of year	(21,284)	(20,883)

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

Statement of Cash Flow (Unaudited)

For the year ended March 31

(in thousands of dollars)

	2007	2006
Operating Activitites
Net cost of operations	94,136	80,061
Non-cash items:
Amortization of tangible capital assets	(809)	(551)
Loss on write-off of tangible capital assets	(1,134)	-
Services provided without charge	(12,648)	(12,024)
Variations in Statement of Financial Position:
Increase in accounts receivable and accountable advances	4,861	357
Increase (decrease) in prepaid expenses and inventories	72	(44)
(Increase) in liabilities	(5,334)	(1,056)
Cash used by operating activities	79,144	66,743
Capital Investment Activities
Net acquisition of tangible capital assets	1,943	2,943
Cash used by capital investment activities	1,943	2,943
Net cash provided by Government of Canada	81,087	69,686

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

Notes to the Financial Statements (Unaudited)

For the year ended March 31, 2007

Authority and Objectives

On April 1, 2004, amendments to the Canadian Centre for Management Development Act were proclaimed and the organization was renamed the Canada School of Public Service (the School). The amended legislation, now entitled the Canada School of Public Service Act, continues and expands the mandate of the former organization as a departmental corporation. The School reports to the President of the Treasury Board, through a Board of Governors made up of representatives of the private and public sectors.

The School is the common learning service provider for the Public Service of Canada. It brings a unified approach to serving the common learning and development needs of public servants and helps ensure that all public service employees across Canada have the knowledge and skills they need to meet the employer’s knowledge standard and deliver results for Canadians.

Through its programming, the School delivers on its legislative mandate to encourage pride and excellence in public service and to foster a common sense of purpose, values and traditions. It helps to ensure that public servants have the knowledge, competencies and skills they need to serve Canada and Canadians and supports the growth and development of public servants committed to the service of Canada. The School assists deputy heads in meeting their organization’s learning needs and pursues excellence in public sector management and public administration.

1. Summary of Significant Accounting Policies
   These financial statements have 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:
   
   1. Parliamentary appropriations – The School is primarily financed by the Government of Canada through Parliamentary appropriations. Financial reporting for appropriations provided to the School do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the statement of operations and in the statement of financial position are not necessarily the same as those provides through appropriations from Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.
   2. Net Cash Provided by Government – The School operates within the Consolidated Revenue Fund (CRF) which is administered by the Receiver General for Canada. All cash received by the School is deposited to the CRF and all cash disbursements made by the School are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
   3. Change in net position in the Consolidated Revenue Fund – It represents the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
   4. Revenues – Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
   5. Expenses – Expenses are recorded on the accrual basis:
      • Vacation leave – Vacation leave is expensed as the benefits accrue to the employees under their respective terms of employment. The liability for vacation leave is calculated at the salary levels in effect at the end of the year for all unused vacation balances.
      • Services provided without charge – Services provided without charge by other government departments for accommodation and the employer’s contribution to the health and dental insurance plans are recorded as operating expenses, at their estimated cost, in the statement of operations. A corresponding amount is reported directly in the Statement of Equity of Canada.
   6. Employee future benefits
      • Pension benefits – Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The School’s contributions to the Plan are charged to expenses in the year incurred and represent the total School’s obligation to the Plan. Current legislation does not require the School to make contributions for any actuarial deficiencies of the Plan.
      • Severance benefits – Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them.
      The obligation related to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
      
   7. Accounts receivable – Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
   8. Inventories – Inventories consist of spare parts and supplies held for future program delivery and are not intended for re-sale. They are valued at cost. If they no longer have service potential, they would be valued at the lower of cost or net realizable value.
   9. Tangible capital assets – All tangible capital assets (including leasehold improvements) having an initial cost of $5,000 or more are recorded at their acquisition cost less accumulated amortization. Similar items under $ 5,000 are expensed in the statement of operations.

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

      
      

      Asset class	Useful life
      Machinery and equipment	5 years
      Other equipment (including furniture)	5 years
      Informatics hardware	5 years
      Software (including developed software)	3-6 years
      Motor vehicle	4 years
      Leasehold improvements	10 years

      
      
   10. Measurement uncertainty – The preparation of these financial statements in accordance with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of expenses and revenues during the reporting period. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant estimates used are the useful life of tangible capital assets and the liability for employee severance benefits. Actual results could differ from those estimates. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.
2. Parliamentary Appropriations
   The School receives most of its funding through Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the School 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 current year appropriations used
   (in thousands of dollars)

   
   

   	2007	2006
   Net cost of operations	94,136	80,061
   Adjustments for items affecting net cost of operations but not affecting appropriations
   Add (Less):
   Revenues	33,105	31,745
   Services provided without charge	(12,648)	(12,024)
   Employee severance benefits	(1,931)	(1,321)
   Loss on write-off of tangible capital assets	(1,134)	-
   Amortization of tangible capital assets	(809)	(551)
   Vacation leave	(753)	(275)
   Other	993	(222)
   	16,823	17,352
   Adjustments for items not affecting net cost of operations but affecting appropriations
   Add (Less):
   Net acquisition of tangible capital assets	1,943	2,943
   Prepaid expenses	150	-
   Other	(15)	(4)
   	2,078	2,939
   Current year appropriations used	113,037	100,352

   
   

   (b) Reconciliation of Parliamentary appropriations provided to current year appropriations used
   (in thousands of dollars)

   
   

   	2007	2006
   Parliamentary Appropriations Voted:
   Program expenditures (Vote 25)	84,641	48,670
   Governor General’s special warrants	-	27,699
   Transfer from Treasury Board (Vote 15)	457	-
   Less:
   Lapsed appropriation – Program expenditures (vote 25)	(7,472)	(3,442)
   Total appropriations used	77,626	72,927
   Statutory authorities:
   Spending of revenues pursuant to subsection 18 (2) of the Canada School of Public Services Act	26,750	19,474
   Contributions to employee benefit plans	8,642	7,951
   Spending of proceeds from the disposal of surplus Crown assets	19	-
   Total Statutory Authorities used	35,411	27,425
   Current year appropriations used	113,037	100,352

   
   

   (c) Reconciliation of net cash provided by Government to current year appropriations used
   (in thousands of dollars)

   
   

   	2007	2006
   Net cash provided by Government	81,087	69,686
   Revenues	33,105	31,751
   Change in net position in the Consolidated Revenue Fund
   Variation in accounts receivable and accountable advances	(4,861)	(357)
   Variation in accounts payable and other liabilities	2,650	(540)
   Other adjustments	1,056	(188)
   	(1,155)	(1,085)
   Current year appropriations used	113,037	100,352

   
   

3. Tangible Capital Assets

   (in thousands of dollars)
   

   	2007									2006
   	Cost				Accumulated amortization
   	Opening balance	Acquisi-tions	Disposals and write-offs1	Closing balance	Opening balance	Amorti-zation	Disposals and write-offs1	Closing balance	Net book value	Net book value
   Machinery and equipment	483	-	-	483	407	59	(3)	469	14	76
   Other equipment (including furniture)	391	90	60	421	190	41	36	195	226	201
   Informatics hardware	3,271	499	1,149	2,621	907	300	95	1,112	1,509	2,364
   Software (including developed software)	2,066	1,287	-	3,353	571	344	(51)	966	2,387	1,494
   Motor vehicle	30	-	-	30	3	4	-	7	23	27
   Leasehold improvements	591	67	-	658	47	61	(2)	110	548	545
   Total	6,832	1,943	1,209	7,566	2,125	809	75	2,859	4,707	4,707

   
   

   ¹ A tangible capital asset review was conducted in 2007 and resulted in assets’ write-offs.

4. Employee Future Benefits

   1. Pension benefits
      The School and all eligible employees contribute to the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.

      The 2006-07 expense amounts to $ 1,365,512 ($ 1,272,161 in 2005-06), which represents approximately 2.2 times (2.6 in 2005-06) the contributions by employees.

      The School’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.

   2. Employee severance benefits
      The School provides severance benefits to its employees based on eligibility, years of service and final salary. The severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31 is as follows:
      
      
      

      (in thousands of dollars)
      	2007	2006
      Accrued benefit obligation, beginning of year	6,710	5,389
      Expense for the year	3,315	2,194
      Benefits paid during the year	(1,384)	(873)
      Accrued benefit obligation, end of year	8,641	6,710

      
      
   
   
5. Contractual Obligations
   The nature of the School’s activities can result in some large multi-year contracts and obligations whereby it will be obligated to make future payments when the services will be rendered or goods received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
   
   
   

   (in thousands of dollars)
   	2008	2009	2010	2011	2012 and thereafter	Total
   Goods and services	1,496	1,446	1,516	1,579	5,772	11,809
   Operating leases	878	751	156	-	-	1,785
   Total	2,374	2,197	1,672	1,579	5,772	13,594

   
   
6. Related Party Transactions
   The School is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations.  The School enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the School received services which were obtained without charge from other Government departments and agencies as presented in part (a).
   
   
   1. Services provided without charge
      The costs of these services have been recognized as an expense in the School’s Statement of Operations as follow:
      
      
      

      (in thousands of dollars)
      	2007	2006
      Accommodation received from Public Works and Government Services Canada (PWGSC)	8,499	8,361
      Contributions covering employer's share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat (TBS)	4,149	3,663
      Total	12,648	12,024

      
      

      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 without charge. The cost of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada are not included as an expense in the School’s Statement of Operations.

   2. Payables and receivables outstanding at year-end with related parties 
      
      
      

      (in thousands of dollars)
      	2007	2006
      Accounts receivable from other government departments and agencies	6,650	1,824
      Accounts payable to other government departments and agencies	5,136	5,780

      
      
   
   
7. Comparative Information
   Comparative figures have been reclassified to conform to the current year’s presentation.

Table 9: Response to Parliamentary Committees, and Audits and Evaluations

Response to Parliamentary Committees

None

Response to the Auditor General of Canada, including to the Commissioner of the Environment and Sustainable Development (CESD)

None

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages.)

None

Internal Audits

An internal audit report on procurement, initiated in 2005 (as a pilot project in partnership with the Department of Finance/Treasury Board Secretariat Internal Audit and Evaluation group), was received by the School in May 2007. While this is outside of the reporting period of 2006-07, most issues outlined in the audit report have already been addressed by the School, and an official management response is being developed. A corporate risk profile was prepared during the reporting period, and the School has been working towards building an internal audit capacity to meet the requirements of the new Policy on Internal Audit. An internal audit plan will be developed during the next planning period.

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