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Section III: Supplementary Information

3.1 Agency Link to the Government of Canada Outcomes


 
 
 
2007-2008
 
 
 
 
 
(thousands of dollars)
 
 
Program Activity
Operating
Grants/ Other
Contributions
Gross Expenditures
Revenues Credited to Vote 1
Total Actuals
Government of Canada Outcome – Federal organizations that support all departments and agencies:
Taxpayer and Business Assistance (PA1)
427,981
603,602
929
1,032,512
(46,627)
985,885
Assessment of Returns and Payment Processing (PA2)
917,571
-
-
917,571
(46,256)
871,315
Accounts Receivable and Returns Compliance (PA3)
817,428
-
-
817,428
(122,107)
695,321
Reporting Compliance (PA4)
1,361,443
-
-
1,361,443
(27,695)
1,333,748
Appeals (PA5)
171,164
-
-
171,164
(15,037)
156,127
Government of Canada Outcome – Income security and employment for Canadians:
Benefit Programs (PA6)
176,257
209,155
-
385,412
(4,849)
380,563
Total
3,871,844
812,757
929
4,685,530
(262,571)
4,422,959

3.2 Unaudited Supplementary Financial Information

Financial Performance Information – Parliamentary Appropriations

Introduction

This section of the CRA Departmental Performance Report 2007-2008 provides the details of the Agency's Resource Management performance for the purpose of reporting to Parliament on the use of appropriations in 2007-2008. This complements the information provided in the spending profile sections under each Program Activity and satisfies the reporting requirements set for departmental performance reports.

Financial reporting methodologies

The CRA's funding is provided by Parliament through annual appropriations (modified cash accounting basis) and the CRA reports its expenditures and performance to Parliament, together with details on the management of Parliamentary appropriations on the same basis. In addition to the above reporting requirements, the CRA is also required to prepare its annual financial statements in accordance with the accounting principles applied in preparing the financial statements of the Government of Canada (full accrual accounting basis). Accordingly, the audited Statement of Operations – Agency Activities includes certain items such as services received without charge from other government departments and federal agencies. A reconciliation can be found in Table 3, Page.

CRA financial information

Activities of the Agency

 
2007-2008
Canada Revenue Agency
(in thousands of dollars)
Main Estimates
$3,379,924
Planned Spending
$3,480,177
Total Authorities
$4,560,163
Actual Spending
$4,422,959

The Financial Statements – Agency Activities reports $3,609.1 million as total Parliamentary appropriations used (Note 3 b on page 123 of the Canada Revenue Agency Annual Report to Parliament 2007-2008 www.cra-arc.gc.ca/gncy/nnnl/menu-eng.html shows the reconciliation to the net cost of operations). The difference from the $4,423.0 million reported in this section is explained by four items reported in the Financial Statements – Administered Activities: the payments to provinces under the Softwood Lumber Products Export Charge Act, 2006 $603.6 million; the Children's Special Allowance, $208.2 million; the payments under the Energy Costs Assistance Measures Act, $1.0 million, and the Relief For Heating Expenses, $1.1 million (part of Vote 1, Program Expenditures).

Overview

For 2007-2008, Parliament approved $3,379.9 million through the Main Estimates, as shown in CRA's 2007-2008 to 2009-2010 Corporate Business Plan.

The 2007-2008 Main Estimates have been adjusted to include:

  • $603.6 million for the Statutory Payments related to the 2006 Canada/US Softwood Lumber Agreement and an additional $15 million for its preparation, implementation and administration;
  • $257.1 million transferred from Public Works and Government Services Canada (PWGSC) for Accommodation Services;
  • $167.7 million for the Carry-forward from 2006-2007;
  • $61.3 million for Maternity and Severance payments;
  • $45.2 million for Budget measures arising from the 2007 Federal Budget;
  • $28.1 million increase for Respendable Revenue adjustment mainly for information technology services provided to Canada Border Services Agency (CBSA);
  • $21.5 million for the implementation of a single administration of corporate tax for the Province of Ontario;
  • $19.3 million for the National Initiative to address inter-provincial tax avoidance by corporations;
  • $12.6 million for Collective Agreements;
  • $10.5 million for Budget measures arising from the 2006 Federal Budget;
  • $4.6 million for Legal and Income Tax Debt Set-off Activities of the Collection Litigations Advisory Services;
  • $3.2 million for the Children's Special Allowance Statutory Payments;
  • $1.0 million for the administration of the one-time Energy Cost Benefit payments;
  • $0.8 million transferred from Justice Canada for Legal Costs;
  • $0.7 million for National Anti-Drug Strategy;
  • $0.6 million for Electronic Services for Business Advertising Campaign;
  • $0.5 million for Court Awards and Crown Assets Disposal;
  • $0.2 million for other minor adjustments.

Offsetting these increases, the CRA returned $41.8 million related to Canada Pension Plan and Employment Insurance; $22.1 million pending the approval of the Offshore Trusts Initiative legislation and some $8.6 million in funding to the Treasury Board related to Payments to Private Collection Agencies. Agency Budgets were also adjusted by $0.7 million for Employee Benefits Plans reductions. This resulted in total approved authorities of $4,560.2 million for 2007-2008, representing an in-year increase of 35% over the Main Estimates.

Of the $4,560.2 million total authority, CRA's actual spending totalled $4,423.0 million resulting in $137.2 million unexpended at year-end. After adjusting for unused resources related to the Residual Offshore Trusts and Charities Outreach Program, the remaining $134.9 million is available for use by the Agency in 2008-2009. This amount is within 5% of the total authority.

The $134.9 million carry forward to 2008-2009 will be directed primarily to selected strategic investments related to:

  • Major project spending (Compliance Systems Redesign, Agency Classification Standards, Non-Tax Collections Systems Integration, GST Redesign);
  • Special purpose funding (Softwood Lumber, Charities Outreach Program, Charities Public Security Anti-Terrorism Measures, Corporate Tax Administration for Ontario, Ministre du revenu du Qubec for the Administration of the GST);
  • Other operational and workload pressures.

Revenues administered by the Agency

Net revenues administered by the CRA totalled some $292.9 billion, an increase of 5% from the $279 billion administered in 2006-2007.


 
2006-2007
2007-2008
 
(in thousands of dollars)
Federal Government
194,189,197
201,057,378
Provincial, Territorial Governments and First Nations
52,356,201
56,358,558
Canada Pension Plan
32,455,339
35,437,908
Total
279,000,737
292,853,844

Financial Performance Tables

Introduction

The following tables provide financial information about the performance of the Agency during the 2007-2008 fiscal year. The tables compare Main Estimates and Planned Spending, as shown in the 2007-2008 Report on Plans and Priorities, with total authorities at year-end and actual expenditures for the fiscal year.

The information is presented at the Agency level, the Program Activity level, as well as by authority and type of revenue and expense.

Financial Tables Index


Figure
Titles
2.1
 
The following tables can be found on the TBS web site at:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
 
Table 4
Sources of Respendable and Non-Respendable Non-Tax Revenue
4.1
Respendable Non-Tax Revenue
4.2
Non-Respendable Non-Tax Revenue
Table 5
User Fees/External Fees
5.1 a
User Fees Act (UFA) – Advance Income Tax Ruling Fee
5.1 b
Policy on Service Standards for External Fees – Advance Income Tax Ruling Fee
5.2 a
User Fees Act (UFA) – Taxation Statistical Analyses and Data Processing Fee
5.2 b
Policy on Service Standards for External Fees – Taxation Statistical Analyses and Data Processing Fee
5.3 a
User Fees Act (UFA) – Access to Information Processing Fee
5.3 b
Policy on Service Standards for External Fees – Access to Information Processing Fee
Table 6
Details on Project Spending
Table 7
Details on Transfer Payment Programs (TPPs)
7.1
Children's Special Allowance Payments (CSA) (Statutory)
7.2
Energy Cost Assistance Measures Expenses (Statutory)
7.3
Payments to Provinces under the Softwood Lumber Products Export Charge Act, 2006 (Statutory)

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

 
 
 
 
2007-2008
 
 
(in thousands of dollars)
2005-2006 Actual[Footnote 1] 
2006-2007 Actual1
Main Estimates
Planned Spending
Total Authorities
Actual
Taxpayer and Business Assistance [Footnote 2] 
331,972
319,608
281,264
296,711
1,007,143
985,885
Assessment of Returns and Payment Processing[Footnote 3] 
811,333
801,844
806,202
839,892
911,122
871,315
Accounts Receivable and Returns Compliance[Footnote 4] 
651,903
645,262
652,428
662,292
713,143
695,321
Reporting Compliance
1,120,846
1,165,717
1,159,454
1,195,958
1,380,228
1,333,748
Appeals
121,858
121,654
146,333
149,545
163,387
156,127
Benefit Programs[Footnote 5] 
669,502
351,039
334,243
335,779
385,140
380,563
Total
3,707,414
3,405,124
3,379,924
3,480,177
4,560,163
4,422,959
                 
Less:
 
 
 
 
 
Non-Tax Revenues
 
 
 
 
 
 
Respendable Revenue – Pursuant to CRA Act [Footnote 6] 
129,357
134,446
143,637
143,637
171,763
171,763
 
 
Non-respendable Revenue[Footnote 7] 
37,497
50,331
N/A
37,597
N/A
44,014
Plus:
 
 
 
 
 
Cost of services received without charge
475,458
436,296
N/A
461,610
N/A
211,053
Net Cost of Agency
4,016,018
3,656,643
N/A
3,760,553
N/A
4,418,235
Full-Time Equivalents
37,577
38,179
N/A
38,756
N/A
38,356

[Footnote 1] Excludes the payments made to Justice Canada during the fiscal year as directed by TBS ($3.6 million in 2005-2006 and $15.4 million in 2006-2007).
[Footnote 2] Starting in 2007-2008, included in this Program Activity are the Softwood Lumber Statutory Payments ($603.6 million in 2007-2008).
[Footnote 3] Includes payments to the Ministre du Revenu du Qubec in respect of the joint administration costs of Federal and Provincial sales taxes ($131.4 million in 2005-2006, $157.4 million in 2006-2007 and $140.7 million in 2007-2008).
[Footnote 4] Includes Payments to Private Collection Agencies ($12.4 million in 2006-2007 and $12.4 million in 2007-2008).
[Footnote 5] Includes a) Relief for Heating Expenses (a relief program announced in 2000) ($2.9 million in 2005-2006, $1.7 million in 2006-2007 and $1.1 million in 2007-2008); b) Energy Costs Assistance Measures expenses (a relief program announced in the Fall of 2005) ($357.7 million in 2005-2006; $4.1 million in 2006-2007 and $1.0 million in 2007-2008); and c) Children's Special Allowance payments ($169.6 million in 2005-2006, $197.8 million in 2006-2007 and $208.2 million in 2007-2008).
[Footnote 6] The increase in Respendable Revenue is mainly related to Information Technology services provided to the Canada Border Services Agency (CBSA).
[Footnote 7] These figures reflect the approach taken in the Agency's Audited Financial Statements where a clear distinction is made between Agency activities and administered activities. Interest and penalties collected for personal, corporate and other taxes, which are part of the Agency's administered activities rather than Agency's activities, are excluded. For more details, see Table 4.2.
Table 2 Voted and Statutory Items

 
 
 
2007-2008
 
 
 
 
(in thousands of dollars)
 
 
Vote
Total Main Estimates
Total Planned Spending
Total Authorities[Footnote 1] 
Actual
 
Canada Revenue Agency
 
 
 
1
Program expenditures and recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Act
2,607,505
2,696,011
3,160,637
3,023,433
(S)
Minister of National Revenue – Salary and motor car allowance
75
75
71
71
(S)
Spending of revenues received through the conduct of its operations pursuant to section 60 of the Canada Revenue Agency Act
143,637
143,637
171,763
171,763
(S)
Contributions to employee benefits plans
402,675
414,422
402,012
402,012
(S)
Children's Special Allowance payments
205,000
205,000
208,163
208,163
(S)
Payments to private collection agencies pursuant to section 17.1 of the Financial Administration Act
21,032
21,032
12,431
12,431
(S)
Payments under the Energy Costs Assistance Measures Act
 
992
992
(S)
Payments to provinces under the Softwood Lumber Products Export Charge Act
 
603,602
603,602
(S)
Spending of proceeds from the disposal of Surplus Crown Assets
 
126
126
(S)
Court Awards
 
366
366
Total Agency
3,379,924
3,480,177
4,560,163
4,422,959

[Footnote 1] For more details on the authorities approved after the Main Estimates, see Table 2.1.

The following table details the authorities approved for the Agency after the Main Estimates and reconciles with the Total Authorities shown in Table 2.

Table 2.1 Authorities approved after tabled Main Estimates

 
(in thousands of dollars)
2007-2008 Main Estimates
3,379,924
Single administration of corporate tax for the Province of Ontario
48,508
National initiative to address inter-provincial tax avoidance by corporations
22,550
Canada/US Softwood Lumber Agreement
16,994
Budget measures arising from the 2006 Federal Budget
12,201
Planned Spending (RPP)
3,480,177
Statutory Payments related to Canada/US Softwood Lumber Agreement
603,602
Transfer from PWGSC for accommodation services
257,146
Carry Forward from 2006-2007
167,724
Maternity and Severance Payments
61,323
Funding to address budget measures arising from the 2007 Federal Budget
45,228
Respendable Revenue Adjustment primarily for Information Technology services provided to CBSA
28,126
Collective Agreements
12,559
Legal and Income Tax Debt Set-off Activities of the Collection Litigations Advisory Services
4,606
Children's Special Allowance adjustment
3,163
Energy Cost Assistance Measures Statutory Payment
992
Transfer from Justice Canada for legal costs
773
National Anti-Drug Strategy (NADS)
660
Electronic Services for Business Advertising Campaign
550
Court Awards
366
Public Service Modernization Act (PSMA)
205
Crown Assets Disposal
126
Transfer from Western Economic and Diversification in support of Minister's Regional Office in Saskatchewan
100
Federal Accountability Act – Evaluation Resources
91
Cabinet Directive on Streamlining of Recommendations
59
Adjustment to Corporate Tax Administration for Ontario (CTAO) from Planned Spending
(23,371)
Adjustment to EI administration costs
(22,796)
Offshore Trusts Initiative
(22,081)
Adjustment to CPP administration costs
(19,039)
Reduction to rates – Employee Benefits Plans
(11,090)
Adjustment to Payments to Private Collection Agencies
(8,601)
Transfer to Foreign Affairs and International Trade in support of Missions Abroad
(231)
Transfer to Public Service Human Resources Management Agency of Canada to support National Managers' Community
(200)
Minister's Salary and Motor Car Allowance
(4)
Total Authorities at year-end
4,560,163

Table 3 Reconciliation to the Statement of Operations

 
 
 
2007-2008
 
 
(in thousands of dollars)
Total Agency
Total Actual Spending[Footnote 1] 
4,422,959
Financial Statements Adjustments
 
 
Agency Activities
 
 
 
Services provided without charge (See Financial Statements – Note 11)
211,053
 
 
Non-Tax Revenue – Respendable (see Financial Statements – Note 10)
(173,068)
 
 
Non-Tax Revenue – Non-Respendable (See Financial Statements – Note 10)
(44,014)
 
 
Other adjustments to accrual from modified cash
(55,001)
 
Administered Activities
 
 
 
Transfers to Provinces under the Softwood Lumber Products Export Charge Act, 2006
(603,602)
 
 
Children's Special Allowance (CSA)
(208,163)
 
 
Energy Cost Assistance Measures
(992)
 
 
Relief for Heating Expenses
(1,064)
Total Net Cost of Operations (from Statement of Operations – Agency Activities)[Footnote 2] 
3,548,108

[Footnote 1] Actual spending, on a modified cash basis, is net of revenues credited to the Vote 1.
[Footnote 2] Net cost of Operations (Expenses less Non-Tax Revenue) from the Statement of Operations – Agency Activities is presented on the accrual basis of accounting.

Audited Financial Statements – Agency Activities

For supplementary information on the Agency's Audited Financial Statements, please visit http://www.cra-arc.gc.ca/gncy/nnnl/menu-eng.html

3.3 Additional Supplementary Information Tables

Sustainable Development

Protecting our environment and pursuing efficient operations go hand in hand at the CRA. By using fewer resources, while optimizing our services, we reduce our operating costs and preserve valuable natural resources. One illustration of this principle is our use of office paper. The table below shows that, since the implementation of our paper reduction strategy in 2002-2003, the overall trend reveals a reduction in the amount of paper used per employee as well as lower office paper expenditures.

Annual Office Paper Consumption


Fiscal Year
Average Consumption per FTE in Sheets
Office Paper Expenditures
2002-2003
7,011
$2.43 million
2003-2004
7,399
$2.42 million
2004-2005
7,234
$1.81 million
2005-2006
6,407
$1.56 million
2006-2007
5,761
$1.45 million
2007-2008
5,721
$1.48 million

Our employees are essential and willing partners in our pursuit of environmental excellence. A 2007 survey indicated that 89% of employees were aware of the sustainable development efforts in our organization. Of those, 94% have reduced paper consumption, 92% have increased recycling, and 91% have reduced their energy consumption.

Our current efforts are guided by our 2007-2010 Sustainable Development Strategy. The strategy sets out our agenda for reducing the impact of our operations on the environment, delivering our programs in a more sustainable way, engaging our employees, and building essential support systems for sustainable development.

For more information on our Sustainable Development performance, please visit:
http://www.cra-arc.gc.ca/gncy/sstnbl/prfrmnc/menu-eng.html

Response to Parliamentary Committees and External Audits

For supplementary information on the Agency's Response to Parliamentary Committees and External Audits please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

Internal Audits and Evaluations

For supplementary information on the Agency's Internal Audits and Evaluations, please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp

Travel Policies

For supplementary information on the Agency's Travel Policies, please visit:
http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp