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Table 6: Details on Transfer Payment Programs

The tables below report, by program activity, the Transfer Payment Programs in excess of $5 million (statutory payments are designated with [S]) that were managed by the Department of Finance Canada in the 2007–08 fiscal year:

Program Activity 9: Transfer Payments to Provinces and Territories[1]

  • Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act) (S)
  • Territorial Formula Financing (Part I.1, Federal-Provincial Fiscal Arrangements Act) (S)
  • Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
  • Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
  • Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities) (S)
  • Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964) (S)
  • Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act) (S)
  • Clean Air and Climate Change Trust Fund (Budget Implementation Act, 2007) (S)
  • Patient Wait Times Guarantee Trust Fund (Budget Implementation Act, 2007) (S)
  • Transition Trust(Budget Implementation Act, 2007) (S)
  • Payment to British Columbia—Spirit Bear Rainforest (Budget Implementation Act, 2007) (S)
  • Transfer Payments to Territorial Governments (Northwest Territories) (Budget Implementation Act, 2007) (S)
  • Transfer Payments to Territorial Governments (Yukon) (Budget Implementation Act, 2007) (S)
  • Human Papillomavirus Immunization Trust Fund (Budget Implementation Act, 2007) (S)
  • Child Care Spaces (Budget Implementation Act, 2007) (S)
  • Payment to Ontario (Budget Implementation Act, 2007) (S)
  • Community Development Trust (S)

Program Activity 10: International Financial Organizations

  • Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries (Vote 5)
  • Debt Payments on Behalf of Poor Countries to International Organizations (Vote 5)
  • Payments to the International Development Association (S)

Note: In addition to the above transfer payments, other transfer payments were committed to in Budget 2008 and had not yet received Royal Assent before the end of the fiscal year and therefore were not identified as charges against the 2007–08 appropriations. As the commitment was established before the end of the fiscal year, however, they were recognized as expenses in the departmental financial statements. The following transfer payments will be reported in the 2008–09 Departmental Performance Report:

  • Canada Social Transfer Transition Protection Program Payment to Saskatchewan(Budget Implementation Act, 2008) (S)
  • Canada Social Transfer Transition Protection Program Payment to Nunavut(Budget Implementation Act, 2008) (S)
  • Payment to Saskatchewan for Carbon Capture and Storage (Budget Implementation Act, 2008) (S)
  • Payment to Nova Scotia for Carbon Storage (Budget Implementation Act, 2008) (S)
  • Police Officers Recruitment Fund (Budget Implementation Act, 2008) (S)
  • Public Transit Capital Trust (Budget Implementation Act, 2008) (S)

Program Activity 9: Transfer Payments to Provinces and Territories


Name of Transfer Payment Program: Fiscal Equalization (Part I, Federal-Provincial Fiscal Arrangements Act) (S)
Start Date: 1957 End Date: Ongoing
Description: Equalization payments are made to provincial governments based on a formula to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional. In 2007–08, seven provinces received payments under this program.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to Canadian provinces to assist them in providing public services.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $10,900,000 $11,535,064 $11,676,353 $12,924,677 $12,924,677 $(1,248,324)
Comment(s) on Variance(s): The entire variance is due to Budget 2007. Budget 2007 announced a new formula for Equalization. Budget 2007 also provided a status quo formula (the January 2007 announcement) that applies to Nova Scotia and Newfoundland and Labrador. These two provinces were given the option of remaining in the status quo system or opting into the new formula. Amounts were included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007.
Significant Evaluation Findings and URL to Last Evaluation: An evaluation of this transfer program culminated with the new formula announced in Budget 2007. The evaluation took into account the June 2006 report of the expert panel (the Expert Panel on Equalization and Territorial Formula Financing) that studied the program, which is available on the panel's website at http://www.eqtff-pfft.ca/english/index.asp.

(The evaluation "findings" are described in Section II. They are the parameters of the new program.)

Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Territorial Formula Financing (Part I.1, Federal-Provincial Fiscal Arrangements Act) (S)
Start Date: 1985 End Date: Ongoing
Description: Transfer payments to territorial governments to support their budgetary revenues
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to Canadian territories to assist them in providing public services.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $2,000,000 $2,118,264 $2,142,450 $2,221,297 $2,221,297 $(78,847)
Comment(s) on Variance(s): The entire variance is due to Budget 2007. Budget 2007 announced a new formula for Territorial Formula Financing. Amounts totalling $2.221 billion (an increase of nearly $79 million) were included in the Budget Implementation Act, 2007, which received Royal Assent on June 22, 2007.
Significant Evaluation Findings and URL to Last Evaluation: An evaluation of this transfer program culminated with the new formula announced in Budget 2007. The evaluation took into account the June 2006 report of the expert panel (the Expert Panel on Equalization and Territorial Formula Financing) that studied the program, which is available on the panel's website at http://www.eqtff-pfft.ca/english/index.asp.

(The evaluation "findings" are described in Section II. They are the parameters of the new program.)

Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Canada Health Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
Start Date: 2004 End Date: Ongoing
Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the national criteria and conditions of the Canada Health Act (comprehensiveness, universality, portability, accessibility, and public administration) and the prohibitions against user fees and extra-billing.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to Canadian provinces and territories to assist them in providing health care services reflecting the principles of the Canada Health Act.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $19,000,000 $20,139,876 $21,348,400 $21,474,272 $21,474,272 $(125,872)
Comment(s) on Variance(s): Due to the interaction between the CHT and the Equalization Program, the new formula for Equalization negatively affected some provinces. Budget 2007 included protection for provinces and territories to ensure that their payments were not lower than they would have been before the introduction of Budget 2007 proposals. Remaining variances from planned spending are due to deductions under the Canada Health Act, as requested by Health Canada.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable. An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.

 


Name of Transfer Payment Program: Canada Social Transfer (Part V.1, Federal-Provincial Fiscal Arrangements Act) (S)
Start Date: 2004 End Date: Ongoing
Description: The Canada Social Transfer (CST) provides equal per capita cash support and tax transfer support to provincial and territorial governments to assist them in financing post-secondary education, social assistance, and social services, including early childhood development, early learning, and child care services. The CST gives provinces and territories the flexibility to allocate payments among supported areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to Canadian provinces and territories to assist them in providing programs and services related to post-secondary education, social assistance and social services, and programs for children.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $8,225,000 $8,500,000 $8,800,000 $9,590,219 $9,590,219 $(790,219)
Comment(s) on Variance(s): Budget 2007 announced additional base funding of $687 million annually beginning in 2007–08 to smooth the transition to equal per capita cash and a long-term funding track to 2013–14, growing at 3 per cent annually as of 2009–10.

Due to the interaction between the Canada Social Transfer and the Equalization Program, the new formula for Equalization negatively affected some provinces and territories. Budget 2007 included protection for provinces and territories to ensure their payments were not lower than they would have been before the introduction of Budget 2007 proposals.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable. An internal audit of the Canada Health and Social Transfer (CHST) was prepared in May 2002 and is available on the Department of Finance Canada website at http://www.fin.gc.ca/toce/2002/audit_transfers-e.html.

 


Name of Transfer Payment Program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities) (S)
Start Date: 1867 End Date: Ongoing
Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to provinces.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $31,819 $31,821 $32,000 $31,822 $31,822 $178
Comment(s) on Variance(s): Payments fluctuate due to changes in the population data used in the formula; it is therefore never possible to have a planned spending figure that will exactly match the actual payments.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964) (S)
Start Date: 1964 End Date: Ongoing
Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfers; in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate recoveries from the Province of Quebec that meet all the legislative and regulatory requirements
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $(596,447) $(706,788) $(661,000) $(943,805) $(943,805) $282,805
Comment(s) on Variance(s): The Department of Finance Canada received $335.9 million of funds from the Province of Quebec relating to Youth Allowances Recoveries for the 2008–09 fiscal year on March 31, 2008. The recovery from the Province of Quebec for the 2007–08 fiscal year is therefore overstated. Without the early payment, the recovery would have been shown as $(607.8) million.

The variance between "Planned Spending" of $(661.0) million and "Total Authorities" (not including the early payment) of $(607.8) million is a result of a decrease in the value of personal income tax points resulting in lower amounts to be recovered from Quebec.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Alternative Payments for Standing Programs (Part VI, Federal-Provincial Fiscal Arrangements Act) (S)
Start Date: 1977 End Date: Ongoing
Description: The Alternative Payments for Standing Programs are a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfers; in the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate recoveries from the Province of Quebec that meet all the legislative and regulatory requirements
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $(2,731,180) $(3,177,016) $(3,010,000) $(2,719,889) $(2,719,889) $(290,111)
Comment(s) on Variance(s): This recovery is based solely on income tax data, which are estimated several times per year. The decrease is due to a decrease in the value of personal income tax points compared with the data used at the time the figures for planned spending were estimated.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Clean Air and Climate Change Trust Fund (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: A one-time payment to provide support to provinces and territories for projects designed to achieve reductions in greenhouse gas emissions and air pollutants. Funding was accounted for in 2006–07 and was paid into a third-party trust in 2007–08 once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to provinces and territories.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $1,518,925 $1,518,925 $(1,518,925)
Comment(s) on Variance(s): On February 12, 2007, the Government of Canada announced this new $1.519 billion trust fund. This trust was notionally allocated over three years beginning in 2007–08.

The trust fund has been allocated on an equal per capita basis, and each province has received a base minimum of $15 million while each territory has received a base minimum of $5 million. This funding was paid on June 28, 2007.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: Not applicable

 


Name of Transfer Payment Program: Patient Wait Times Guarantee Trust Fund (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: A one-time payment to provide support to provinces and territories for development of patient wait times guarantees in at least one of the five identified priority areas (cancer treatment, heart procedures, diagnostic imaging, joint replacement, and sight restoration). Funding was accounted for in 2006–07 and was paid into a third-party trust in 2007–08 once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10) and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to provinces and territories.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $612,000 $612,000 $(612,000)
Comment(s) on Variance(s): Budget 2007 announced funding of $612 million to assist provinces and territories that made commitments to a patient wait times guarantee with the implementation of those guarantees. All provinces and territories made the necessary commitments.

The first $112 million represents base funding ($10 million to each province and $4 million to each territory), notionally allocated over 2007–08 to 2009–10. The balance, $500 million, was notionally allocated over the same three years on a per capita basis. This funding was paid on June 28, 2007.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: Not applicable

 


Name of Transfer Payment Program: Transition Trust (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: One-time transitional payments for outstanding commitments to Ontario, Manitoba, and Saskatchewan for training and post-secondary education. Funding was accounted for in 2006–07 and was paid into a third-party trust in 2007–08 once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10), and the three provinces have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all legislative requirements provided financial support to Ontario, Manitoba, and Saskatchewan.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $614,038 $614,038 $(614,038)
Comment(s) on Variance(s): Budget 2007 announced funding of $614 million to a trust to provide funding of $574 million to Ontario for post-secondary education and training, $21.6 million to Manitoba for training, and $18.4 million to Saskatchewan for training. This funding was paid on June 28, 2007.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Payment to British Columbia—Spirit Bear Rainforest (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: A one-time payment to the Province of British Columbia to support sustainable land and resource management development in the Great Bear Rainforest on the central coast of British Columbia
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative and regulatory requirements provided financial support to British Columbia.
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $30,000 $30,000 $(30,000)
Comment(s) on Variance(s): In January 2007 the Government announced one-time funding of $30 million to protect the Great Bear Rainforest in British Columbia. Bill C-42 (Budget Implementation Act, 2007) granted authority to the government to make the payment, which was made in fiscal year 2007–08.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Transfer Payments to Territorial Governments (Northwest Territories) (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: To provide for an adjustment to the Government of the Northwest Territories for the portion of the corporate income tax refund paid out by the territory to date. Funding is accounted for in 2006–07 and was paid in 2007–08 once authorizing legislation received Royal Assent.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to the Northwest Territories.
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $54,400 $54,400 $(54,400)
Comment(s) on Variance(s): Budget 2007 announced funding to the Northwest Territories (NWT) of $54.4 million to compensate the NWT for the Territorial Formula Financing entitlement reductions that resulted from Canada Revenue Agency repayments. This funding was paid on July 3, 2007.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Transfer Payments to Territorial Governments (Yukon) (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: To provide for a payment to the Government of the Yukon to satisfy Canada's one-time funding obligations under the Yukon Devolution Transfer Agreement. Funding was accounted for in 2006–07 and was paid in 2007–08 once authorizing legislation received Royal Assent.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to the Yukon Territory.
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $3,500 $3,500 $(3,500)
Comment(s) on Variance(s): Budget 2007 announced funding to Yukon of $3.5 million to satisfy all of Canada's one-time funding obligations under the Yukon Devolution Transfer Agreement. This funding was paid on July 3, 2007.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: Not applicable

 


Name of Transfer Payment Program: Human Papillomavirus Immunization Trust Fund (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: A one-time payment to provide support to provinces and territories to launch a national human papillomavirus (HPV) vaccine program to protect women and girls from cervical cancer. Funding was accounted for in 2006–07 and was paid into a third-party trust in 2007–08 once authorizing legislation received Royal Assent. Funding is notionally allocated over three years (2007–08 to 2009–10), and provinces and territories have the flexibility to draw down funds according to their respective needs and priorities over the lifespan of the trust.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to provinces and territories.
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $300,000 $300,000 $(300,000)
Comment(s) on Variance(s): Budget 2007 announced an immunization trust to assist provinces and territories with the cost of immunization against HPV, a virus that can lead to cervical cancer.

A third-party trust fund of $300 million was established and notionally allocated for 2007–08 to 2009–10. The trust was allocated to provinces and territories on an equal per capita basis. This funding was paid on June 28, 2007.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Child Care Spaces (Budget Implementation Act, 2007) (S)
Start Date: 2007–08 End Date: 2007–08
Description: A one-time payment to provide support to provinces and territories for the creation of child care spaces through a direct payment for 2007–08; funding will be included in the Canada Social Transfer beginning in 2008–09.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to provinces and territories.
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $250,000 $250,000 $(250,000)
Comment(s) on Variance(s): Budget 2007 announced funding of $250 million to support the creation of child care spaces, to be provided directly to the provinces and territories on a per capita basis. This funding was paid on June 28, 2007.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Payment to Ontario (Budget Implementation Act, 2007) (S)
Start Date: 2006–07 End Date: 2007–08
Description: Direct payments are made to the Government of Ontario to assist the province in the transition to a single corporate tax administration, in respect of the Canada-Ontario Agreement.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Reduced the compliance burden for Ontario businesses by moving to a common federal and provincial tax base as part of the Canada-Ontario Agreement
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $250,000 $250,000 $(250,000)
Comment(s) on Variance(s): The provision to pay Ontario $250 million in 2007–08 was not included in the Main Estimates.
Significant Evaluation Findings and URL to Last Evaluation:Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.

 


Name of Transfer Payment Program: Community Development Trust (S)
Start Date: 2007–08 End Date: 2007–08
Description: The Community Development Trust helps provinces and territories assist communities and workers suffering economic hardship caused by the current volatility in global financial and commodities markets.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments that meet all the legislative requirements provided financial support to provinces and territories.
 $ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): Transfer Payments to Provinces and Territories
Total Other Transfer Payments: $0 $0 $0 $1,000,000 $1,000,000 $(1,000,000)
Comment(s) on Variance(s): In accordance with the announcement of January 10, 2008, legislation was introduced to make payments to a trust established to provide provinces and territories with funding to support provincial and territorial initiatives to assist the adjustment of vulnerable communities to international economic volatility.

The first $109 million represents base funding ($10 million to each province and $3 million to each territory), notionally allocated over 2008–09 to 2010–11. The balance, $891 million, was notionally allocated over the same three years on a per capita basis. This funding was paid on April 2, 2008.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: Not applicable.
Total for Transfer Payments to Provinces and Territories $36,829,192 $38,441,221 $40,328,203 $47,211,456 $47,211,456 $(6,883,253)

Program Activity 10: International Financial Organizations


Name of Transfer Payment Program: Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries (Vote 5)
Start Date: 1991–92 End Date: Ongoing
Description: This program compensates Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Timely and accurate payments to the EDC and the CWB to compensate for debt relief to debtor countries
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): International Financial Organizations
 Total grants $579,242 $203,405 $125,000 $125,000 $231 $124,769
 Total contributions $68,799 $66,587 $45,000 $44,990 $42,646 $2,354
Total $648,041 $269,992 $170,000 $169,990 $42,877 $127,123
Comment(s) on Variance(s): Variances between planned and actual spending are due almost exclusively to certain countries' failing to meet the requirements of their International Monetary Fund (IMF) programs, which led to a delay in debt forgiveness for these countries. A small amount of the variance is due to interest rate and currency fluctuations, which could not be anticipated.
Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: The Department conducted a review of administrative controls over international obligations and subscription payments. The work undertaken in the review found the following:

- The management framework surrounding the administration of international obligations and subscriptions is effective in meeting the business requirements of the Department;

- Payment schedules and transaction types were compliant with the terms specified in the respective legislative acts and agreements;

- Program officials were experienced in the undertaking of their administrative responsibilities;

- Funding instruments respect the need for accountability to Parliament, while balancing the principles of cost-benefit, risk management, and policy objectives; and

- Departmental reporting demonstrated a good knowledge of program activities and performance.


 


Name of Transfer Payment Program: Debt Payments on Behalf of Poor Countries to International Organizations (Vote 5)
Start Date: 2005–06 End Date: Ongoing
Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved: Responsible administration of financial obligations under the Multilateral Debt Relief Initiative
$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): International Financial Organizations
 Total grants $16,586 $45,605 $51,200 $51,200 $50,490 $710
Comment(s) on Variance(s):Comoros debt arrears clearance of $600,000 explains the variance between planned and actual spending.

Due to political instability and deteriorating governance, Comoros was no longer eligible for an International Monetary Fund (IMF)–supported program; the Department of Finance Canada therefore did not contribute to its arrears clearance operation.

Significant Evaluation Findings and URL to Last Evaluation: Not applicable.
Significant Audit Findings and URL to Last Audit: The Department conducted a review of administrative controls over international obligations and subscription payments. The work undertaken in the review found the following:

- The management framework surrounding the administration of international obligations and subscriptions is effective in meeting the business requirements of the Department;

- Payment schedules and transaction types were compliant with the terms specified in the respective legislative acts and agreements;

- Program officials were experienced in the undertaking of their administrative responsibilities;

- Funding instruments respect the need for accountability to Parliament, while balancing the principles of cost-benefit, risk management, and policy objectives; and

- Departmental reporting demonstrated a good knowledge of program activities and performance.



Name of Transfer Payment Program: Payments to the International Development Association (S)
Start Date: 1960–61 End Date: Ongoing
Description: This program provides encashment of demand notes to allow the International Development Association (IDA) to disburse concessional financing for development projects and programs in the world's poorest countries.
Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians
Results Achieved:

·         Financial obligations to the IDA are responsibly administrated; and

·         The results of IDA operations are detailed in the report on operations under the Breton Woods and Related Agreements Act that is tabled annually in Parliament.

$ thousands Actual Spending 2005–06 Actual Spending 2006–07 Planned Spending 2007–08 Total Authorities 2007–08 Actual Spending 2007–08 Variance(s) (2007–08 Planned-Actual)
Program Activity (PA): International Financial Organizations
Total Other Transfer Payments: $239,741 $318,270 $318,270 $318,270 $318,270 $0
Comment(s) on Variance(s): Not applicable
Significant Evaluation Findings and URL to Last Evaluation: Not applicable
Significant Audit Findings and URL to Last Audit: The Department conducted a review of administrative controls over international obligations and subscription payments. The work undertaken in the review found the following:

- The management framework surrounding the administration of international obligations and subscriptions is effective in meeting the business requirements of the Department;

- Payment schedules and transaction types were compliant with the terms specified in the respective legislative acts and agreements;

- Program officials were experienced in the undertaking of their administrative responsibilities;

- Funding instruments respect the need for accountability to Parliament, while balancing the principles of cost-benefit, risk management, and policy objectives; and

- Departmental reporting demonstrated a good knowledge of program activities and performance.

Total for International Financial Organizations $904,368 $633,867 $539,470 $539,460 $411,637 $127,833