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2007-08
Departmental Performance Report
Department of Finance Canada
Supplementary Information (Tables)
Table of Contents
- Loans, Investments and Advances (Non-Budgetary)
- Sources of Respendable and Non-respendable Revenue
- User Fees/External Fees
- Details on Transfer Payments Programs
- Horizontal Initiatives
- Sustainable Development Strategy
- Response to Parliamentary Committees and External Audits
- Internal Audits and Evaluations
Table 3: Loans, Investments, and Advances (Non-budgetary)
| ($ thousands) |
Actual 2005–06 |
Actual 2006–07 |
2007–08 | |||
|
Main Estimates |
Planned Spending |
Total Authorities |
Actual | |||
| International Financial Organizations | ||||||
| Issuance and payment of demand notes to the International Development Association | 318,270 | 318,270 | 0 | 0 | 318,280 | 318,280 |
| Issuance and payment of demand notes to the European Bank for Reconstruction and Development (EBRD)—Capital subscriptions | 9,157 | 0 | 0 | 0 | 0 | 0 |
| Payment and encashment of notes issued to the EBRD—Capital subscriptions | 15,106 | 6,498 | 5,247 | 5,247 | 4,334 | 4,334 |
| Issuance of loans to the Poverty Reduction and Growth Facility of the International Monetary Fund | 89,956 | 0 | 0 | 0 | 0 | 0 |
| Financial Sector Policy | ||||||
| Advances pursuant to subsection 13(1) of the Financial Consumer Agency of Canada Act | 4,500 | 5,000 | 0 | 0 | 4,000 | 4,000 |
| Advances pursuant to subsection 12(2) of the Farm Credit Canada Act | 0 | 0 | 0 | 0 | 3,840,000 | 3,840,000 |
| Advances pursuant to section 19 of the Business Development Bank of Canada Act | 0 | 0 | 0 | 0 | 1,000,000 | 1,000,000 |
| Total* | 436,990 | 329,768 | 5,247 | 5,247 | 5,166,614 | 5,166,614 |
* Due to rounding, figures may not add to totals shown.
Table 4: Sources of Respendable and Non-Respendable Revenue
Respendable Revenue
| ($ thousands) |
Actual 2005–06 |
Actual 1 2006–07 |
2007–08 | |||
|
Main Estimates |
Planned Revenue |
Total Authorities |
Actual | |||
| Tax Policy | ||||||
| Sale of departmental documents | 0 | 0 | 128 | 128 | 128 | 18 |
| Economic and Fiscal Policy | ||||||
| Sale of departmental documents | 0 | 0 | 59 | 59 | 59 | 8 |
| Financial Sector Policy | ||||||
| Sale of departmental documents | 0 | 0 | 71 | 71 | 71 | 10 |
|
Economic Development and Corporate Finance |
||||||
| Sale of departmental documents | 0 | 0 | 32 | 32 | 32 | 5 |
|
Federal-Provincial Relations and Social Policy |
||||||
| Sale of departmental documents | 0 | 0 | 48 | 48 | 48 | 7 |
| International Trade and Finance | ||||||
| Sale of departmental documents | 0 | 0 | 62 | 62 | 62 | 9 |
| Total respendable revenue* | 0 | 0 | 400 | 400 | 400 | 58 |
* Due to rounding, figures may not add to totals shown.
Note:
1. Respendable revenue for the Department includes amounts received for the sale of documents. During 2006–07, approximately $117 thousand was received and identified under non-respendable revenue
Non-Respendable Revenue
| ($ thousands) | Actual 2005–06 |
Actual 2006–07 |
2007–08 | |||||||||
| Main Estimates |
Planned Revenue |
Total Authorities |
Actual | |||||||||
| Tax Policy | ||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 31 | 6 | __ | __ | __ | 28 | ||||||
| Adjustments to prior year's payables | 296 | 64 | __ | __ | __ | 271 | ||||||
| Sales of goods and services—Sale of other publications | 11 | 35 | __ | __ | __ | 19 | ||||||
| Fees—Access to information | 1 | 4 | __ | __ | __ | 2 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 11 | __ | __ | __ | 50 | ||||||
| Optional Services Revolving Fund | 9 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 2 | 6 | __ | __ | __ | 2 | ||||||
| Economic and Fiscal Policy | ||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 15 | 3 | __ | __ | __ | 13 | ||||||
| Adjustments to prior year's payables | 143 | 30 | __ | __ | __ | 124 | ||||||
| Sales of goods and services—Sale of other publications | 5 | 16 | __ | __ | __ | 9 | ||||||
| Fees—Access to information | 1 | 2 | __ | __ | __ | 1 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 5 | __ | __ | __ | 23 | ||||||
| Optional Services Revolving Fund | 4 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 1 | 3 | __ | __ | __ | 1 | ||||||
| Financial Sector Policy | ||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 16 | 4 | __ | __ | __ | 16 | ||||||
| Adjustments to prior year's payables | 158 | 43 | __ | __ | __ | 150 | ||||||
| Sales of goods and services—Sale of other publications | 6 | 23 | __ | __ | __ | 10 | ||||||
| Fees—Access to information | 1 | 3 | __ | __ | __ | 1 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 8 | __ | __ | __ | 28 | ||||||
| Optional Services Revolving Fund | 5 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 1 | 4 | __ | __ | __ | 1 | ||||||
| Cash and accounts receivable—Cash—Chartered banks | 27,120 | 46,004 | __ | __ | __ | 60,048 | ||||||
| Cash and accounts receivable—Cash—Short-term deposits | 143,420 | 237,066 | __ | __ | __ | 225,791 | ||||||
| Cash and accounts receivable—Cash—Receiver General balance at the Bank of Canada | 41,598 | 68,160 | __ | __ | __ | 74,822 | ||||||
| Foreign exchange accounts—International reserves held in the Exchange Fund Account—Transfer of profit | 1,394,534 | 1,765,275 | __ | __ | __ | 1,828,151 | ||||||
| Foreign exchange accounts—International Monetary Fund—Subscriptions—Transfer of profit | 49,895 | 22,753 | __ | __ | __ | 9,292 | ||||||
| Loans, investments, and advances—Bank of Canada—Transfer of profit | 1,735,610 | 1,983,529 | __ | __ | __ | 1,921,014 | ||||||
| Loans, investments, and advances—Financial Consumer Agency of Canada | 112 | 166 | __ | __ | __ | 125 | ||||||
| Miscellaneous non-tax revenues—Transfer from the following accounts that were unclaimed or outstanding for 10 years or more: Outstanding Imprest Account—Unclaimed cheques | 31,057 | 25,929 | __ | __ | __ | 30,087 | ||||||
| Miscellaneous non-tax revenues—Unclaimed balances received from the Bank of Canada in respect of chartered banks | 3,829 | 3,951 | __ | __ | __ | 1,449 | ||||||
| Miscellaneous non-tax revenues—Mortgage interest premium | 8,836 | 10,517 | __ | __ | __ | 13,851 | ||||||
| Miscellaneous non-tax revenues—Sundries | 1,551 | 215 | __ | __ | __ | 8 | ||||||
| Farm Credit Canada | 0 | 0 | __ | __ | __ | 19,945 | ||||||
| Business Development Bank of Canada | 0 | 0 | __ | __ | __ | 1,870 | ||||||
| Economic Development and Corporate Finance |
||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 8 | 2 | __ | __ | __ | 7 | ||||||
| Adjustments to prior year's payables | 75 | 16 | __ | __ | __ | 69 | ||||||
| Sales of goods and services—Sale of other publications | 3 | 9 | __ | __ | __ | 5 | ||||||
| Fees—Access to information | 0 | 1 | __ | __ | __ | 0 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 3 | __ | __ | __ | 13 | ||||||
| Optional Services Revolving Fund | 2 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 0 | 2 | __ | __ | __ | 1 | ||||||
| Loans, investments, and advances—Canada Development Investment Corporation—Dividend | 199,000 | 156,000 | __ | __ | __ | 234,200 | ||||||
| Miscellaneous non-tax revenues—Sale of real property to Canada Lands Company Limited | 2,126 | 2,070 | __ | __ | __ | 5,184 | ||||||
| Federal-Provincial Relations and Social Policy |
||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 13 | 3 | __ | __ | __ | 11 | ||||||
| Adjustments to prior year's payables | 122 | 35 | __ | __ | __ | 102 | ||||||
| Sales of goods and services—Sale of other publications | 5 | 19 | __ | __ | __ | 7 | ||||||
| Fees—Access to information | 1 | 2 | __ | __ | __ | 1 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 6 | __ | __ | __ | 19 | ||||||
| Optional Services Revolving Fund | 4 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 1 | 3 | __ | __ | __ | 1 | ||||||
| International Trade and Finance | ||||||||||||
| Refunds of previous years' expenditures—Refund of salaries, goods, and services | 16 | 3 | __ | __ | __ | 14 | ||||||
| Adjustments to prior year's payables | 152 | 32 | __ | __ | __ | 131 | ||||||
| Sales of goods and services—Sale of other publications | 6 | 17 | __ | __ | __ | 9 | ||||||
| Fees—Access to information | 1 | 2 | __ | __ | __ | 1 | ||||||
| Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund | 0 | 6 | __ | __ | __ | 24 | ||||||
| Optional Services Revolving Fund | 5 | 0 | __ | __ | __ | 0 | ||||||
| Proceeds from the disposal of surplus Crown assets | 1 | 3 | __ | __ | __ | 1 | ||||||
| Public Debt | ||||||||||||
| Miscellaneous non-tax revenues—Transfer from matured debt outstanding | 4,965 | 2,463 | __ | __ | __ | 5,436 | ||||||
| Domestic Coinage | ||||||||||||
| Domestic coinage | 212,942 | 226,843 | __ | 233,517 | __ | 203,566 | ||||||
| Transfer Payments to Provinces and Territories |
||||||||||||
| Loans, investments, and advances—Federal-provincial fiscal arrangements | 59 | 59 | __ | __ | __ | 59 | ||||||
| Loans, investments, and advances—Municipal Development and Loan Board | 173 | 42 | __ | __ | __ | 5 | ||||||
| International Financial Organizations | ||||||||||||
| Loans, investments, and advances—United Kingdom—United Kingdom Financial Agreement Act, 1946—Deferred interest | 1,013 | 335 | __ | __ | __ | 0 | ||||||
| Loans, investments, and advances—International Monetary Fund—Poverty Reduction and Growth Facility | 16,874 | 13,679 | __ | __ | __ | 14,111 | ||||||
| Net gain on exchange | 1,088,319 | 74,444 | __ | __ | __ | 44,420 | ||||||
| Total non-respendable revenue* | 4,964,155 | 4,639,937 | 233,517 | 4,694,598 | ||||||||
* Due to rounding, figures may not add to totals shown.
Table 5: User Fees and External Fees
| A. User Fee | Fee Type |
Fee Setting Authority |
Date Last Modified |
2007–08 | Planning Years | ||||||
|
Forecast Revenue ($000) |
Actual Revenue ($000) |
Full Cost ($000) |
Performance Standard |
Performance Results | Fiscal Year |
Forecast Revenue ($000) |
Estimated Full Cost ($000) |
||||
| Fees charged for the processing of access requests filed under the Access to Information Act | Other products and services (O) | Access to Information Act | 1992 | 14 | 5 | 979 | Performance standards in accordance with the Access to Information Act and its associated regulations | Statutory deadlines were met 92% of the time |
2008–09 2009–10 2010–11 |
4 4 4 |
940 960 980 |
|
B. Date Last Modified Not applicable |
|||||||||||
|
C. Other Information It is the Department's practice to waive fees when the fee is less than $25. Exceptionally, when the circumstances warrant it, additional fees may be waived. |
|||||||||||
Table 5–B: Policy on Service Standards for External Fees
| A. External Fee | Service Standard | Performance Result | Stakeholder Consultation |
| Fees charged for the processing of access requests filed under the Access to Information Act |
Performance standards in accordance with the Access to Information Act and its associated regulations (see http://laws.justice.gc.ca/ en/A-1) |
Statutory deadlines were met 92% of the time | The service standard is established under the Access to Information Act and its associated regulations. Consultations with stakeholders were undertaken for amendments to regulations made in 1986 and 1992. |
|
B. Other Information Not applicable |
|||
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 | |
Table 7: Sustainable Development Strategy
The Department of Finance Canada's Sustainable Development[2] Strategy (SDS) for the period of 2007–09 is the department's third update of its original SDS tabled in Parliament in December 1997. The 2007–09 SDS builds on the foundation laid by previous strategies, which includes key achievements in debt reduction, the
evaluation of environmental tax proposals, strategic environmental assessment, and green stewardship. The Department's 1998–00,
2001–03, 2004–06, and 2007–09 strategies can be found at http://www.fin.gc.ca/purl/susdev-e.html.
The Department's current management strategy for the SDS consists of a departmental sustainable development champion, a core working group of officials with representatives from all branches, and reviews of sustainable development progress and planning by senior management. The Department also continues to raise awareness of the departmental process for fulfilling its obligations under The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.
Strategic outcomes
The Department's vision for sustainable development is as follows: "Economic and fiscal policy frameworks and decisions that promote equity and enhance the economic, social, and environmental well-being of current and future generations." It highlights the long-term ideal that the Department will strive to achieve.
Key issues
For the 2007–09 SDS, the Department has set out five long-term goals that focus on key areas where it can contribute, within its mandate, to sustainable development: (1) fiscal sustainability and a high standard of living for future generations; (2) strong social foundations; (3) integration of sustainable development considerations into policy making; (4) integration of sustainable development considerations into the economy; and (5) demonstration of the Department's commitment to sustainable development in operations.
Under each of these five goals, the Department's action plan for sustainable development sets out a number of objectives and targeted actions over the planning period. In undertaking these actions over the next three years, the Department recognizes that fully achieving its vision for sustainable development will take time and continued effort, requiring a long-term strategic approach as well as an ongoing commitment to short-term actions.
Targets and reporting
A detailed outline of the Department's objectives, actions, planned results, and results achieved for 2007–08 as well as the highlights of its new 2007–09 SDS are available at http://www.fin.gc.ca/purl/susdev-e.html.
Table 8: Response to Parliamentary Committees and External Audits
| Response to Parliamentary Committees |
| None. |
| Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development) |
| 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. |
Table 9: Internal Audits and Evaluations
Internal audits (2007–08)
Over the past year, the Department undertook significant efforts to strengthen and stabilize its internal audit capacity and delivery processes. An annual review of the three-year risk-based audit plan was approved in spring of 2008.
|
Name of Internal Audit |
Audit Type | Status | Completion Date | Electronic Link to Report |
| None |
Other projects:
- Review of International Obligations and Subscription Payments (see Program Activity 10 under Section II: Analysis of Program Activities by Strategic Outcome)
- Review of Translation and Editing Services
- Selected testing of Accounts Payable
- Three-year risk-based audit plan
Evaluations (2007–08)
A one-year risk-based evaluation plan was approved in September 2007. The Department focussed much attention on strengthening evaluation capacity in anticipation of requirements under the proposed Treasury Board Evaluation Policy.
| Name of Evaluation | Program Activity | Evaluation Type | Status | CompletionDate | Electronic Link to Report |
| None | |||||
| Electronic Link to Evaluation Plan: N/A | |||||
Other projects:
- A research report on the effect of corporate income tax rate reductions on business investment was published in the Tax Expenditures and Evaluations 2007 report available at www.fin.gc.ca/taxexp/2007/taxexp07_4e.html#part2. (See Program Activity 1 under Section II: Analysis of Program Activities by Strategic Outcome.)
- An external evaluation of the treasury management risk framework was completed, taking into account the recommendations received from an external evaluation of cash management activities. The completed external evaluations are posted on the Treasury Evaluation Program section of the Department's website (http://www.fin.gc.ca/access/fininste.html#Treasury). (See Program Activity 3 under Section II: Analysis of Program Activities by Strategic Outcome.)
- In February 2008, the Financial Action Task Force on Money Laundering released its findings on its evaluation of Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime (http://www.fatf-gafi.org/dataoecd/5/3/40323928.pdf). (See Program Activity 3 under Section II: Analysis of Program Activities by Strategic Outcome.)
- An evaluation of the Fiscal Equalization and Territorial Formula Financing transfer payments culminated in the new formula announced in Budget 2007. The evaluation took into account the June 2006 report of 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. (See Program Activity 5 under Section II: Analysis of Program Activities by Strategic Outcome.)
Table 10: Horizontal Initiatives
| Name of Horizontal Initiative: Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime—formerly the National Initiative to Combat Money Laundering (NICML) | |
| Name of Lead Department: Department of Finance Canada | Lead Department Program Activity: Financial Sector Policy |
| Start Date of the Horizontal Initiative:June 2000 | End Date of the Horizontal Initiative:2009–10 |
| Total Federal Funding Allocation (start to end date):$433,700 (thousands) | |
|
Description of the Horizontal Initiative (including funding agreement): The National Initiative to Combat Money Laundering (NICML) was formally established in 2000 as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act (PCmlA), created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the PCmlA was amended to include measures to fight terrorist financing activities and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The NICML is now known as Canada's Anti–Money Laundering and Anti–Terrorist Financing (AML/ATF) Regime. In December 2006, Bill C-25 amended the PCMLTFA to ensure that Canada's legislation remains consistent with international AML and ATF standards as set out by the Financial Action Task Force on Money Laundering (FATF) and is responsive to areas of domestic risk. Amendments include enhanced client identification requirements, the creation of a registration regime for money services businesses, and the establishment of an administrative and monetary penalties regime to deal with lesser infractions of the PCMLTFA. |
|
| Shared Outcome:To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences | |
| Governance Structure:Canada's AML/ATF Regime is a horizontal initiative comprising both funded and non-funded partners. The funded partners include the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, FINTRAC, the Canada Border Services Agency (CBSA)—Immigration and Customs, the Canada Revenue Agency (CRA), and the Royal Canadian Mounted Police (RCMP); non-funded partners include Public Safety Canada (PS), the Office of the Superintendent of Financial Institutions Canada (OSFI), and the Canadian Security Intelligence Service (CSIS). An interdepartmental Assistant Deputy Minister (ADM)–level group and working group, consisting of all partners and led by the Department of Finance Canada, direct and coordinate the government's efforts to combat money laundering and terrorist financing activities. In addition, a public-private sector advisory committee was established to facilitate input from the private sector participants in the AML/ATF Regime. | |
| Federal Partners | Federal Partner Program Activity | Names of Programs for the Federal Partners |
Total Allocation (from start to end date) (in thousands) |
Planned Spending for 2007–08 (in thousands) |
Actual Spending in 2007–08 (in thousands) |
Expected Results for 2007–08 | Results Achieved in 2007–08 | ||
| Department of Finance Canada | Financial Sector Policy | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $3,000 | $300 | $296 | 1. Consultations with public and private sector stakeholders to refine regulatory proposals | 1. Consultations with the public and private sectors are ongoing. A public-private sector advisory committee was established to facilitate discussions among private and public sector members of the Regime. | ||
| 2. Published regulations pursuant to the amended PCMLTFA | 2. Three sets of regulations pursuant to Bill C-25 were published in final form over the course of FY 2007–08. These regulations enhance customer due diligence, record keeping, and reporting requirements for financial institutions and intermediaries; create a registration scheme for money services businesses; bring three new reporting sectors under the Regime; and create an administrative monetary penalties scheme. | ||||||||
| 3. Finalizing of the FATF mutual evaluation of the AML/ATF Regime | 3. The FATF finalized its evaluation of Canada's AML/ATF Regime and released its findings in February 2008. | ||||||||
| 4. Effective oversight of Canada's AML/ATF Regime | 4. The Department of Finance Canada continues to lead the Regime and make available avenues to address policy and operational issues to ensure Canada has an effective AML/ATF Regime. | ||||||||
| 5. Support for the 2006–07 Canadian presidency of the FATF | 5. Canada successfully concluded its one-year presidency of the FATF on June 30, 2007. During this time, six countries underwent assessment, membership of the FATF grew, and communications with the private sector were strengthened. | ||||||||
| Department of Justice Canada (JUS) | The National Initiative to Combat Money Laundering | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $9,300 | $100 | $100 | The Criminal Division of JUS plays a significant role in the regime. For 2007–08, it is anticipated that the Criminal Division will use the resources it receives to carry out work related to the FATF, including attending FATF-related international meetings, which will total five (5) over the relevant period. Attendance at the meetings is of particular importance during 2007, as Canada's AML/ATF Regime is being evaluated this year against the FATF's 40 and 9 Special Recommendations, and the presence of JUS is necessary to ensure proper discussions of the Canadian evaluation report. In addition, the Criminal Division will be the relevant authority to respond to all legal issues that develop out of that evaluation. Resources will also be allocated to ensure the Criminal Division's continued involvement in policy development relating to money laundering and terrorist financing. Finally, the Human Rights Law Section will receive money to deal with any ancillary constitutional issue raised during the prosecutions. | Canada's AML/ATF Regime was evaluated by the FATF, and Criminal Division counsel fully participated in all domestic discussions surrounding the evaluation report and attended two FATF meetings and an intercessional meeting with the evaluators. Division counsel attended a Caribbean Financial Action Task Force (CFATF) Plenary meeting, working with the Department of Finance Canada in preparatory and plenary meetings. Division counsel also participated as an FATF legal expert, as part of the FATF assessment team in an evaluation of Japan's Anti-Money Laundering and Combating the Financing of Terrorism Regime. In addition, the Criminal Division was the relevant authority to respond to all legal issues that develop out of the evaluation of Canada. Resources were also expended to ensure the Criminal Division's continued involvement in policy development relating to money laundering and terrorist financing. Finally, the Human Rights Law Section dealt with any ancillary constitutional issue raised during the prosecutions. | ||
| Public Prosecution Service of Canada (PPSC) | Addressing criminal issues to contribute to a safer world for Canada | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $6,900 | $2,300 | $2,000 | PPSC plays a significant role in the Regime. For 2007–08, it is anticipated that information provided to law enforcement by FINTRAC will result in more prosecutorial legal advice's being provided to law enforcement. It will also result in additional charges' being laid for money laundering and terrorist financing offences and thus result in an increased workload for prosecutors. The PPSC also has responsibilities related to the PCMLTFA. The planned work includes applications for production orders, increases in border seizure and forfeiture work associated with suspected proceeds of crime, and prosecutions related to offences created within the PCMLTFA. In addition, resources will be used to provide training to law enforcement personnel and prosecutors and for the development and coordination of policy as it relates to money laundering and terrorist financing. Finally, PPSC personnel will carry out work related to the FATF, including attending the FATF international meeting. | For 2007–08, PPSC opened 51 files with, among other charges, a charge of either money laundering or a charge under the PCMLTFA. These 51 files contained 6 charges of money laundering and 62 charges under the PCMLTFA, for a total of 68 charges. In addition, Crown counsel worked on 83 carry-over files with, among other charges, a charge of either money laundering or a charge under the PCMLTFA. These files contained 16 charges under the PCMLTFA and 285 charges of money laundering, for a total of 301 charges. Over this time period, PPSC counsel also obtained 11 production orders under section 60 of the PCMLTFA. | ||
| FINTRAC | Collection, analysis, and dissemination of financial information | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $269,085 | $38,595 | $35,800 |
Technology-driven financial intelligence analysis and case disclosures that are widely used by law enforcement and intelligence agencies with a program that fosters compliance by the reporting entities Implementation of amendments contained in Bill C-25 |
FINTRAC continued to make case disclosures of financial intelligence to law enforcement agencies and national security agencies. The increasingly complex cases that were disclosed pinpointed new suspects and financial transactions and triggered new investigations or provided significant input to ongoing investigations or prosecutions. FINTRAC continued to expand ongoing compliance activities and outreach efforts, which include conducting over 370 presentations, meetings, and seminars with reporting entities and associations. Through macroanalysis of its case disclosures and the associated transaction reports, FINTRAC continued to gather valuable insights into suspected money laundering cases and suspected terrorist financing activity. By sharing strategic information, FINTRAC supported the work of policy makers, domestic partners in law enforcement and national security, the financial community, and international partners. FINTRAC also undertook to implement and integrate into its operations the changes resulting from Bill C-25. Among other actions, this included the development of a registration system for money service businesses, as well as an administrative monetary penalty regime designed to serve as a complementary tool to bring contraveners into compliance. |
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| Canada Border Services Agency (CBSA) | Security | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $55,952 | $7,525 | $7,500 | The CBSA is responsible for administering Part 2 of the PCMLTFA, "Reporting of Currency and Monetary Instruments." The Cross-Border Currency Reporting (CBCR) Program requires that travellers report the importation and exportation of currency and monetary instruments equal to or greater than CAD$10,000. Part 2 also provides for the enforcement element of the CBCR Program, which includes conducting searches, questioning individuals, and seizing non-reported or falsely reported currency and suspected proceeds of crime. | Since January 2003, the CBSA has assumed new responsibilities for administrating and enforcing Part 2 of the PCMLTFA. Under this legislation, all imported or exported currency or monetary instruments valued at more than CAD$10,000, must be reported to the CBSA. During 2007–08, the CBSA participated in more than 2,000 seizures under the PCMLTFA, the value of the seizures totalling over $39 million. Approximately $6 million of this total was forfeited to the Crown. | ||
| Canada Revenue Agency (CRA) | Special Enforcement Program | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $11,000 | $2,200 | $2,228 | Projected number of audits is 105, with a projected federal tax recovery of $8,956,905 | Total number of audits is 99 with a federal tax recovery of $11,304,163 | ||
| RCMP—Money Laundering Units | Money Laundering Units | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $57,103 | $7,117 | $6,704 |
Enhanced national and international opportunities for the detection and investigation of money laundering activities Development of FINTRAC disclosures, as well as other intelligence, to a point where resources from Integrated Proceeds of Crime (IPOC) units or elsewhere in the RCMP could then be directed toward investigations in an effort to increase seizures Increased resource level in Canada's three major urban centres (Vancouver, Toronto, and Montreal) to help build up the investigative capacity in those centres to conduct investigations on leads related to Canada's AML/ATF Regime |
The money laundering branch continues to investigate numerous opportunities for criminals to launder their illicit money both domestically and internationally. These include a report on Canada's casinos, e-currency, white label automatic teller machines (ATM), and pre-paid credit cards. The money laundering units continue to receive intelligence from a number of sources, which include FINTRAC disclosures and CBSA cross-border currency reporting information. The units are referring this intelligence over to the IPOC units where the intelligence received has contributed to ongoing investigations, prompted the commencement of new investigations, and provided information for potential future use. In 2007–08, IPOC units seized over 400 assets valued at $15,070,923. Resource levels have increased in Vancouver, Montreal, and Toronto. These money laundering units now have 10 investigators. |
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| RCMP—Anti–Terrorist Financing Team (ATFT) | Anti–Terrorist Financing Units | Canada's Anti–Money Laundering and Anti–Terrorist Financing Regime | $21,360 | $5,340 | $3,258 | Through the gathering and analysis of financial intelligence, the ATFT will focus on converting that intelligence into proactive investigations, thus enhancing the RCMP's ability to detect and deter terrorist financing activities. |
The ATFT continues to provide support to seven project status investigations of terrorist financing across Canada, support to 15 various investigations, and assistance in response to other agencies' requests. ATFT continues to provide training to the RCMP and partner agencies. The RCMP and CRA jointly delivered four seminars on the use of the Charities Registration (Security Information) Act (CRSIA) legislation to field units in Ottawa, Halifax, Montreal, and Toronto. The RCMP, CSIS, and CRA have formed a working group to identify charities linked to terrorist financing and utilizing the "certification process" under the CRSIA. The RCMP assisted with drafting responses to the FATF evaluation of Canada completed in February 2008. The RCMP will continue to assist in FATF typology working groups on terrorism financing and proliferation. Representatives from ATFT recently returned from the CFATF Plenary held in Haiti in May 2008. |
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| Total $433,700 | Total $63,477 | Total $57,886 | |||||||
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Comments on Variances RCMP—Anti–Terrorist Financing Team: The shortfall in the spending is due to the fact that six regular member positions have yet to be staffed. The field units are up to strength and are not experiencing any exceptional expenditures. Staffing of these vacancies is anticipated by September or October 2008. |
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| Results to be Achieved by Non-Federal Partners (if applicable): Not applicable | |||||||||
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18. Contact Information: Lynn Hemmings Phone: 613-992-0553 |
19. Approved by: Jeremy Rudin Phone: 613-992-5885 |
20. Date Approved: July 2008 |
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[1] In addition to the transfer payments listed, Wait Times Reduction payments (Part V.1, Federal-Provincial Fiscal Arrangements Act) were made to a third-party trust fund on behalf of provinces and territories in 2004 for the 2004–05 to 2008–09 period and therefore were not identified as charges against the 2007–08 appropriations. Beginning in 2009–10, a Wait Times Reduction Transfer will provide annual cash transfers to provinces and territories until 2013–14, which will be reported starting in the 2009–10 Departmental Performance Report.
[2] “Sustainable development” is a continually evolving concept based on the integration of social, economic, and environmental concerns. It may be achieved by, among other things, the following:
(a) the integration of the environment and the economy;
(b) protecting the health of Canadians;
(c) protecting ecosystems;
(d) meeting international obligations;
(e) promoting equity;
(f) an integrated approach to planning and making decisions that takes into account the environmental and natural resource costs of different economic options and the economic costs of different environmental and natural resource options;
(g) preventing pollution; and
(h) demonstrating respect for nature and the needs of future generations.