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Section III: Supplementary Information

Organizational Structure as at September 30, 2006

Table 1: Comparison of Planned to Actual Spending (including FTEs)

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.

			2006–07
($ 000)	2004–05 Actual	2005–06 Actual	Main Estimates	Planned Spending	Total Authorities	Total Actuals(2)
Modernized HR management and strengthened accountability	29,074	37,465	55,327	47,822	48,870	38,319
An effective, ethical leadership and a quality work environment	49,958	49,334	40,262	43,688	45,975	45,870
A representative and accessible public service	14,951	12,511	11,291	13,200	13,223	12,180
Total	93,983	99,310	106,880	104,710	108,068	96,369
Plus: Cost of services received without charge (1)	8,587	8,375	n/a	7,896	n/a	8,589
Total Agency Spending	102,570	107,685	106,880	112,606	108,068	104,958
Full-time equivalents	477	539	n/a	667	n/a	608
Note: Totals may differ between and within tables due to rounding of figures.
1. Services without charge include accommodation provided by Public Works and Government Services Canada (PWGSC), the employer's share of insurance premiums and services received from JUS (see Table 4). 2. The 2006–07 total authorities of $108.1M represent a net increase of $3.4M or 3 percent over the 2006–07 Planned Spending of $104.7M, which is mainly attributable to the inclusion in the 2006–07 Authorities of a budget of $3.1M carried forward from 2005–06, as well as increases in funding related to collective agreements made available through the Supplementary Estimates. Total Authorities of $108.1M less Actual Spending of $96.4M result in lapsing funds of $11.7M. A frozen allotment of $10.1M accounts for 86 percent of the lapse. The remaining $1.6M in unspent funds is a result of unforeseen delays in program implementation.

Table 2: Use of Resources by Program Activity

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

2006–07
($ 000)	Budgetary
Program Activities (Strategic Outcome Components)	Total: Budgetary Expenditures (100% Operating)
Modernized HR Management and Strengthened Accountability
Main Estimates	55,327
Planned Spending	47,822
Total Authorities	48,870
Actual Spending	38,319
Effective, Ethical Leadership and a Quality Work Environment
Main Estimates	40,262
Planned Spending	43,688
Total Authorities	45,975
Actual Spending	45,870
Representative and Accessible Public Service
Main Estimates	11,291
Planned Spending	13,200
Total Authorities	13,223
Actual Spending	12,180
Total Canada Public Service Agency
Main Estimates	106,880
Planned Spending	104,710
Total Authorities	108,068
Actual Spending	96,369

Table 3: Voted and Statutory Items

This table explains how Parliament votes resources to the Agency.

		2006–07 ($ 000)
Vote or Statutory Item	Truncated Vote or Statutory Wording	Main Estimates	Planned Spending	Total Authorities	Total Actuals
35	Operating expenditures	97,675	96,692	99,407	87,708
(S)	Contributions to employee benefit plans	9,205	8,018	8,661	8,661
	Total	106,880	104,710	108,068	96,369

Table 4: Services Received Without Charge

($ 000)	2006–07
Accommodation provided by Public Works and Government Services Canada	4,167
Contributions covering employer's share of employees' insurance premiums and expenditures paid by TBS	4,234
Salary and associated expenditures of legal services provided by JUS	188
Total 2006–07 services received without charge	8,589

Table 5: Resource Requirements by Organization

($ 000)

2006–07
Canada Public Service Agency	Modernized HR Management and Strengthened Accountability	Effective, Ethical Leadership and a Quality Work Environment	Representative and Accessible Public Service	Total
Organization
President
Main Estimates	436	716	201	1,353
Planned Spending	175	375	100	650
Total Authorities	268	439	123	830
Actual Spending	290	476	133	899
Executive Vice-President
Main Estimates	209	343	96	649
Planned Spending	200	300	100	600
Total Authorities	211	347	97	656
Actual Spending	199	327	92	617
Strategic Management and Planning
Main Estimates	4,976	8,164	2,290	15,430
Planned Spending	5,515	8,675	2,300	16,490
Total Authorities	7,900	12,968	3,637	24,505
Actual Spending	8,241	13,527	3,793	25,561
Communications
Main Estimates	745	1,223	343	2,311
Planned Spending	745	1,221	361	2,327
Total Authorities	826	1,356	380	2,563
Actual Spending	830	1,363	382	2,575
Public Service Renewal and Diversity
Main Estimates	8,563		2,561	11,124
Planned Spending	6,953		3,500	10,453
Total Authorities	5,296		1,785	7,082
Actual Spending	5,818		1,979	7,797
Human Resources Management Modernization
Main Estimates	40,398			40,398
Planned Spending	34,199			34,199
Total Authorities	34,099			34,099
Actual Spending	22,941			22,941
The Leadership Network
Main Estimates		25,266		25,266
Planned Spending		28,242		28,242
Total Authorities		26,791		26,791
Actual Spending		24,995		24,995
Office of Public Service Values and Ethics
Main Estimates		4,549		4,549
Planned Spending		4,949		4,949
Total Authorities		5,167		5,167
Actual Spending		5,182		5,182
Official Languages
Main Estimates			5,800	5,800
Planned Spending			6,800	6,800
Total Authorities			6,377	6,377
Actual Spending			5,801	5,801
Total Canada Public Service Agency
Main Estimates	55,327	40,262	11,291	106,880
Planned Spending	47,787	43,762	13,161	104,710
Total Authorities	48,601	47,068	12,399	108,068
Actual Spending	38,319	45,870	12,180	96,369
Note: Totals may differ between and within tables due to rounding of figures.

Table 6: Details on Contribution Program

Name of Transfer Payment Program: Youth Internship Program (Voted)

	Actual Spending 2004–05	Actual Spending 2005–06	Planned Spending 2006–07	Total Authorities 2006–07	Actual Spending 2006–07	Variance between planned and actual spending
	($ 000)
Canada Public Service Agency
Total Contributions	16,082	8,148	0	0	0	0
Total Transfer Payment Program	16,082	8,148	0	0	0	0
Note: In 2004–05, the decision was made to integrate the Youth Internship Program with the Youth Employment Strategy led by Human Resources and Skills Development Canada (HRSDC). Both programs targeted youth facing barriers to employment. This will ensure better and more cost-effective delivery of programs aimed at helping youth make a successful transition to the workplace. Funding for this Program was received in the Agency's 2005–06 Main Estimates, and was subsequently reduced by $8M following a decision made by the Expenditure Review Committee. Program funding was finally transferred to HRSDC in fiscal year 2006–07. Transfers with respect to fiscal year 2006–07 and the following fiscal years were made through Annual Reference Level Update adjustments. Therefore, expenditures under these authorities will now be reflected in the HRSDC Departmental Performance Report.

Table 7: 2006–07 Financial Statements

Financial Statements (unaudited)
For the year ended March 31, 2007

Public Service Human Resources Management Agency of Canada

Statement of management responsibility

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 Agency management. These financial statements have been prepared by the Corporate Services Branch of the Department of Finance Canada, under a memorandum of understanding on shared administrative services. Hence, to the best of our knowledge and convictions, the financial statements are 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 the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Agency's financial transactions. Financial information submitted for the preparation of the Public Accounts of Canada and included in the Agency'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, 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 Agency.

The financial statements of the Agency have not been audited.

The paper version was signed by

Nicole Jauvin President Public Service Human Resources Management Agency of Canada Ottawa, Canada August 10, 2007

Jocelyne M. Charron Acting Senior Financial Officer Strategic Management Public Service Human Resources Management Agency of Canada Ottawa, Canada August 10, 2007

Statement of operations (unaudited)

For the Year Ended March 31
($ 000)

		2007	2006
Expenses (Note 4)
	Effective, Ethical Leadership and a Quality Work Environment	50,630	54,449
	Modernized Human Resources Management and Strengthened Accountability	41,255	40,430
	Representative and Accessible Public Service	13,502	14,038
Total Expenses		105,387	108,917
Revenues
	Effective, Ethical Leadership and a Quality Work Environment	-	5
	Modernized Human Resources Management and Strengthened Accountability	-	3
	Representative and Accessible Public Service	-	1
Total Revenues		-	9
Net Cost of Operations		105,387	108,908

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

Statement of financial position (unaudited)

At March 31
($ 000)

			2007	2006
Assets
Financial assets
	Accounts receivable and advances (Note 5)		1,553	1,432
Non-financial assets
		Prepaid expenses	-	11
		Tangible capital assets (Note 6)	32	98
Total non-financial assets			32	109
Total			1,585	1,541
Liabilities
	Accounts payable and accrued liabilities (Note 7)		10,369	15,820
	Vacation pay and compensatory leave		2,968	2,761
	Employee severance benefits (Note 8)		11,523	10,796
Total liabilities			24,860	29,377
Equity of Canada			(23,275)	(27,836)
Total			1,585	1,541

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

Statement of equity of Canada (unaudited)

For the Year Ended March 31
($ 000)

	2007	2006
Equity of Canada, beginning of year	(27,836)	(33,699)
Net cost of operations	(105,387)	(108,908)
Current year appropriations used (Note 3)	96,369	99,310
Revenue not available for spending	–	(9)
Change in net position in the Consolidated Revenue Fund (Note 3)	4,990	7,095
Services received without charge from other government departments (Note 9)	8,589	8,375
Equity of Canada, end of year	(23,275)	(27,836)

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

Statement of cash flow (unaudited)

For the Year Ended March 31
($ 000)

		2007	2006
Operating activities
Net cost of operations		105,387	108,908
Non-cash items:
	Amortization of tangible capital assets	(25)	(27)
	Gain (loss) on disposal and write-off of tangible capital assets	(41)	–
	Services provided without charge by other departments	(8,589)	(8,375)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances		121	633
Increase (decrease) in prepaid expenses		(11)	–
Increase (decrease) in liabilities:
	Accounts payable and accrued liabilities	5,451	7,214
	Employee severance benefits	(727)	(1,054)
	Vacation pay and compensatory leave	(207)	(942)
Cash used by operating activities		101,359	106,357
Capital investment activities
Acquisition of tangible capital assets		–	39
Cash used by capital investment activities		–	39
Financing activities
Net cash provided by the Government of Canada		(101,359)	(106,396)

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

Authority and objectives

The Agency's raison d'être is to modernize, and to foster continuing excellence in, people management and leadership across the public service. The Agency was created by Order PC 2003-2074 of December 12, 2003, and is governed by paragraphs 6(4.1)(a) et 6(4.1)(b) of the Financial Administration Act.

The Agency's strategic outcome is a modern, professional Public Service dedicated to the public interest and supporting ministers in democratic governance, representative of the Canadian public and serving Canadians with excellence in the official language of their choice, with employees effectively and ethically led in a high quality work environment respectful of their linguistic rights.

To achieve its strategic outcome and deliver results for Canadians, the Agency articulates its plans and priorities around three results-based program activities (or three strategic outcome components):

(a)  Effective, Ethical Leadership and a Quality Work Environment

(b) Modernized Human Resources Management and Strengthened Accountability

(c)  Representative and Accessible Public Service

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

Summary of significant accounting policies

The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted principles for the public sector.

Significant accounting policies are as follows:

(a) Parliamentary appropriations

The Agency is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Agency 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 the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.

(b) Net cash provided by the government

The Agency operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency 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.

(c) Change in net position in the Consolidated Revenue Fund

Change in net position in the Consolidated Revenue Fund is 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 Agency. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

(d) Revenues

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

(e) 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, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

(f) Employee future benefits

Pension benefits: Eligible employees participate in the Public Service Pension Plan and retirement compensation arrangements. The Public Service Pension Plan is a multi-employer plan administered by the Government of Canada. The Agency's contributions to the Plan are charged to expenses in the year incurred and represent the Agency's total obligation to the Plan. Current legislation does not require the Agency 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 relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the government as a whole.

(g) Accounts receivable and advances

Accounts receivable and advances are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain. As there were no doubtful amounts reflected in the Agency's Public Accounts as at March 31, 2007 and no write-offs were made in 2007, no Allowance for Doubtful Accounts has been created.

(h) Contingent liabilities

Contingent liabilities are potential liabilities, which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements. The Agency had no contingent liabilities to report as of March 31, 2007.

(i) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000or more are recorded at their acquisition cost. The Agency 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 5 years
Vehicles	3 years
Assets under construction	Once in service, in accordance with asset type

(j) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable.

The most significant items where estimates are used are the liability for employee severance benefits and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

Parliamentary appropriations

The Agency receives most of its funding through annual 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 Agency 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:

Notes to financial statements (unaudited)

For the year ended March 31, 2007
($ 000)

(a) Reconciliation of net cost of operations to current year appropriations used:

		2007	2006 (restated figures)
Net cost of operations		105,387	108,908
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
	Services provided without charge by other departments	(8,589)	(8,375)
	Amortization of tangible capital assets	(25)	(27)
	Vacation pay and compensatory leave	(207)	(942)
	Employee severance benefits	(727)	(1,054)
	Revenue not available for spending	–	9
	Gain (loss) on disposal and write-off of tangible capital assets	(41)	–
	Other	582	752
		(9,007)	(9,637)
Adjustments for items not affecting net cost of operations but affecting appropriations: Add (Less):
	Acquisition of tangible capital assets	–	39
	Increase (decrease) in prepaid expenses	(11)	–
		(11)	39
Current year appropriations used		96,369	99,310

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

(b) Appropriations provided and used:

			2007	2006
Appropriations provided:
	Vote 30 – Operating expenditures		99,407	83,884
	Vote 35 – Contributions		–	16,200
Total appropriations			99,407	100,084
Statutory appropriations:
		Contributions to employee benefit plans	8,661	8,733
Total statutory appropriations			8,661	8,733
Lapsed appropriations:
		Vote 30 – Operating expenses	(11,699)	(1,455)
		Vote 35 – Contributions	–	(8,052)
Total lapsed appropriations			(11,699)	(9,507)
Current year appropriations used			96,369	99,310

In 2007, an allotment of $10,100 was frozen from vote 30 funds.

In 2006, the federal Youth Internship Program was reduced by $8M based on a decision by the Expenditure Review Committee, which explains $8,052,000 in lapsed vote 35 appropriations in 2006. Funding for the Program was subsequently transferred to Human Resources and Skills Development Canada, which explains the zero balance in lapsed vote 35 appropriations in 2007.

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

(c) Reconciliation of net cash provided by the government to current year appropriations used:

		2007	2006
			(restated figures)
Net cash provided by Government		101,359	106,396
Revenue not available for spending		–	9
Change in net position in the Consolidated Revenue Fund:
	Variation in accounts receivable and advances	(121)	(633)
	Variation in accounts payable and accrued liabilities	(5,451)	(7,214)
	Other adjustments	582	752
Total changes in net position in the Consolidated Revenue Fund		(4,990)	(7,095)
Current year appropriations used		96,369	99,310

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

Expenses

	2007	2006
Transfer payments	-	8,148
Salaries and employee benefits	70,083	66,833
Professional and special services	20,794	19,612
Accommodation	4,167	3,920
Acquisition of machinery and equipment, including expendables	3,607	3,983
Transportation and telecommunications	2,951	2,671
Purchase of repair and maintenance services	2,284	1,865
Information	809	1,106
Equipment rentals	644	669
Amortization of tangible capital assets	25	27
Other	23	83
Total operating expenses	105,387	100,769
Total expenses	105,387	108,917

Accounts receivable and advances

	2007	2006
Receivables from other government departments	1,509	1,394
Receivables from external parties	27	27
Deposits in transit to the Receiver General	-	8
Employee advances	17	3
Total accounts receivable and advances	1,553	1,432

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

Tangible capital assets

	Cost
	Opening balance	Acquisitions	Disposals and Write-offs	Closing balance
Machinery and equipment	150			150
Vehicles	25			25
Assets under construction	41		41
	216		41	175

	Accumulated amortization
	Opening balance	Amortization	Disposals and Write-offs		Closing balance
Machinery and equipment	104	17			121
Vehicles	14	8			22
Assets under construction					–
	118	25			143

		Net book value
		Net book value 2006	Net book value 2007
Machinery and equipment		46	29
Vehicles		11	3
Assets under construction		41
		98	32

Amortization expense for the year ended March 31, 2007 is $25 ($27 in 2006).

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

Accounts payable and accrued liabilities

	2007	2006
Payables to third parties	7,056	7,008
Payables to other government departments	3,313	8,812
Total accounts payable and accrued liabilities	10,369	15,820

Employee benefits

(a) Pension benefits

The Agency's employees participate in 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 two 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.

Both the employees and the Agency contribute to the cost of the Plan. The 2006–07 expense amounts to $6,383 ($6,463 in 2005–06), which represents approximately 2.2 times (2.6 times in 2005–06) the contributions by employees.

The Agency'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.

(b) Severance benefits

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

	2007	2006
Accrued benefit obligation, beginning of year	10,796	9,742
Expense for the year	2,128	2,214
Benefits paid during the year	(1,401)	(1,160)
Accrued benefit obligation, end of year	11,523	10,796

Notes to financial statements (unaudited)
For the year ended March 31, 2007
($ 000)

Related party transactions

The Agency is related, as a result of common ownership, to all Government of Canada departments, agencies, and Crown corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the Agency received services, which were obtained without charge, from other Government departments as presented in the table below.

Services provided without charge:

During the year, the Agency received services without charge from other departments (accommodation, legal services and the employer's contribution to the health and dental insurance plans). These services without charge have been recognized in the Agency's Statement of Operations as follows:

	2007	2006
Employer's contributions to the health and dental insurance plans	4,234	4,226
Accommodation	4,167	3,920
Legal services	188	229
	8,589	8,375

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 costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services, are not included as an expense in the Agency's Statement of Operations.

Comparative figures

The figures from the previous fiscal year have been restated to conform to the presentation adopted for the current fiscal year.

Table 8: Travel Policies

The Secretariat adheres to travel policies and parameters as established by the Special Travel Authorities and the Travel Directive, Rates and Allowances.

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