ARCHIVED - Supplementary Estimates (C), 2008-09

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Introduction to Supplementary Estimates

Structure of these Supplementary Estimates

This Supplementary Estimates document is presented in three distinct sections:

1. Introduction to Supplementary Estimates ;
2. Summary Tables ; and,
3. Detail by Department, Agency and Crown corporation.

The substance of these Supplementary Estimates is provided in the summary tables and in the detail by department, agency and appropriation-dependent Crown corporation. This introduction provides the context for these Supplementary Estimates by presenting an overview of proposed spending as well as explanations of the various elements.

Purpose and General Information

Supplementary Estimates documents are tabled in Parliament approximately one month in advance of the related Appropriation Act ¹ . This period is intended to provide the various Standing Committees of Parliament with sufficient time to review proposed spending before introduction of the Appropriation Act.

The purpose of Supplementary Estimates is to present to Parliament information on the Government of Canada's spending requirements which were either not sufficiently developed in time for inclusion in the Main Estimates, or have subsequently been refined to account for developments in particular programs and services. Supplementary Estimates also provide updated information on changes to expenditure forecasts of major statutory items as well as on such items as: transfers of money between Votes; debt deletion; loan guarantees; new or increased grants; and changes to Vote wording.

These Supplementary Estimates continue to reflect the government's commitment to renew the Expenditure Management System (EMS). Normally there are at least two Supplementary Estimates documents tabled each year. Each document is identified alphabetically (A, B, C, etc.). In recent years, the first regular Supplementary Estimates document has been tabled in late October and the final document in February.

However, this year, in keeping with government commitments to renew the EMS, Supplementary Estimates (A), 2008-09 were tabled in May in order to reduce the lag between key Budget announcements and actual program implementation. Since the Supplementary Estimates (B) could not be tabled as planned in October due to the general election on October 14, 2008, the document was tabled on November 24, 2008. As the prorogation of Parliament on December 4, 2008 precluded the tabling of the Supply bill associated with Supplementary Estimates (B), these were re-tabled in Parliament on January 29, 2009, but the associated Appropriation Act has not been passed at the time of printing this document. These Supplementary Estimates (C) therefore represent the third opportunity for parliamentary review of departmental program requirements this fiscal year, and will allow departments to implement planned spending for approved programs in support of results for Canadians in a timely manner.

1. Parliament's approval of an Appropriation Act provides the necessary authority for the Government of Canada to spend monies from the Consolidated Revenue Fund to carry out its programs and services.

Spending Authority

The Supplementary Estimates present information on budgetary and non-budgetary spending authorities that are displayed for both voted and statutory expenditures.

  Budgetary expenditures include:

• Cost of servicing the public debt;
• Operating and capital expenditures;
• Transfer payments to other levels of government, organizations or individuals; and
• Payments to Crown corporations.

Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.

Voted expenditures are those for which parliamentary authority is sought through an Appropriation bill.

Statutory expenditures are those authorized by Parliament through enabling legislation.

Overview of these Supplementary Estimates

Table 1 provides a financial overview of these Supplementary Estimates.

Table 1 - Total Supplementary Estimates ($ millions)
		Budgetary		Non-Budgetary		Total
Voted Appropriations		1,475.2		2.0		1,477.2
Statutory Authorities		2,478.7		(18.6)		2,460.1
Total		3,953.9		(16.6)		3,937.3

 

Spending in the Supplementary Estimates is consistent with the fiscal framework established in the February 2008 Budget.

Where differences exist between the to-date total budgetary Estimates and planned budgetary expenses for 2008-09, these differences are attributable largely to the following:

• a net adjustment, to account for certain major components of budgetary expenses that are presented on a gross basis of expenditure in the Budget, but on a net basis in the Estimates (e.g., the Canada Child Tax Benefit, departmental revenues levied for specific services and revenues of consolidated Crown corporations);
• expenditures which, for Budget and accounting purposes, have been charged to prior years to coincide with the timing of when the obligations were incurred;
• accrual accounting adjustments, as well as the recognition of 2008-09 liabilities, for items that, while being recognized, do not require appropriations (i.e., cash) this year; and,
• program expenses identified in a Budget or an Economic and Fiscal Update that have yet to be allocated to a department.

Table 2 provides a reconciliation of these differences.  

Table 2 - Budgetary Expenditures ($ billions)
Budget (February 2008)			239.6
Estimates to-date :
2008-09 Main Estimates*	221.0
Supplementary Estimates (A), 2008-09	4.1
Supplementary Estimates (B), 2008-09	2.3
Supplementary Estimates (C), 2008-09	4.0	231.4
Adjustments :
Net adjustment, from net to gross basis of Budget
presentation**	15.2
Other adjustments***	(7.0)	8.2
Total			239.6
Variance			0

 

*	Includes $134.9 million for the Canada Revenue Agency, $55.1 million for the Parks Canada Agency and $230.3 million for the Canada Border Services Agency from 2007-08 non-lapsing appropriations.
**	Budget presents expenses on a gross basis, whereas Main Estimates are presented on net basis. Certain revenues are netted against budgetary expenses.
***	Other adjustments, consisting of cash disbursements for capital acquisition, expenditures charged to prior years and program expenses not yet allocated.

 

Overview of 2008-09 to-date (Supply issues)

• The 2008-09 Main Estimates in the amount of $221.5 billion, for which the voted budgetary spending component was $79.0 billion, were tabled in the House of Commons on February 28, 2008. Interim Supply, in the amount of $23.4 billion, received Royal Assent on March 29, 2008, while Full Supply for the remaining $55.6 billion received Royal Assent on June 18, 2008.
• Budget 2008 was tabled on February 26, 2008. The tabling of the 2008 Budget immediately before the 2008-09 Main Estimates meant that the government could only seek spending authority for many of the newly announced measures through Supplementary Estimates.
• The 2008-09 Supplementary Estimates (A) were tabled in the House of Commons on May 13, 2008. Appropriation Act No. 3, 2008-2009, provided Full Supply in the amount of $3.6 billion for the 2008-09 Supplementary Estimates (A) and received Royal Assent on June 18, 2008.
• Although the 2008-09 Supplementary Estimates (B) were originally tabled in the House of Commons on November 24, 2008, the prorogation of Parliament on December 4, 2008 precluded the tabling of the associated Supply bill. In order to deal with the supply requirements for Supplementary Estimates (B) outside of the normal supply calendar, a Special Order is required that requires concurrence by Parliament. Should this not occur, the Supply bill related to Supplementary Estimates (B) will be introduced in March.
• These Supplementary Estimates do not reflect any of the Budget measures announced on January 27, 2009. They do, however, reflect some of the savings in 2008-09 resulting from the first round of reviews of departmental spending that took place in 2007, to the extent that these have been used to reduce requests for new appropriations in the affected departments and agencies. For information purposes, the following table presents a summary by department and agency of the savings that were identified for each of the 17 departments and agencies included in the first round of reviews.

Table 3 - 2007 Strategic Review Savings for 2008-09 ($ millions)

Department or Agency	Savings*		Total Savings
	Amounts excluding Employee Benefit Plans	Employee Benefit Plans
Agriculture and Agri-Food
Canadian Food Inspection Agency	16.6	0.3	17.0
Canada Revenue Agency	6.0		6.0
Canadian Heritage
Department	5.9	0.1	6.0
Canadian Museum of Civilization	0.4		0.4
Canadian Museum of Nature	1.2		1.2
Library and Archives of Canada	1.0	0.1	1.1
National Gallery of Canada	0.9		0.9
Environment
Parks Canada Agency	2.9		2.9
Finance
Department	4.5	0.6	5.1
Canadian International Trade Tribunal	0.7		0.7
Financial Transactions and Reports
Analysis Centre of Canada	2.2		2.2
Foreign Affairs and International Trade
Department **	71.6	2.5	74.0
Canadian International Development Agency	52.2		52.2
International Development Research Centre	6.9		6.9
Industry
Statistics Canada	11.1	0.4	11.5
Transport
Department	12.5		12.5
Total	196.5	3.9	200.4

 

* Amounts may not add to totals due to rounding.

** Foreign Affairs and International Trade amount differs from that presented in Budget 2008 due to timing differences in recognizing the capital savings between the cash basis of accounting used for Supplementary Estimates and the accrual basis used in Budget 2008.

Overview of Major changes to Budgetary Spending

The following provides an overview of the major items (i.e. those greater than $50 million) in total budgetary spending (Voted and Statutory) comprising the increase of $4.0 billion presented in these Supplementary Estimates.

1. Voted budgetary spending is forecast to increase by a net amount of $1.475 billion and is largely attributable to the following key initiatives:

i) Funding to Treasury Board Secretariat for compensation for salary adjustments ($707.4 million)

Funding to compensate departments, agencies and appropriation-dependent Crown corporations for the impact of collective bargaining agreements, and other related adjustments to terms and conditions of service or employment. The costs result from signed collective agreements and other related adjustments to terms and conditions of service or employment made between August 1, 2008 and December 12, 2008.

ii) Funding to Agriculture and Agri-Food to facilitate the transition of Ontario flue-cured tobacco producers to exit the industry (Tobacco Transition Program - Buyout Element) ($288.9 million)

Funding provided through the Tobacco Transition Program will help participating producers move to other crops and support them in efforts to seek off-farm income. The objective of the buyout element of the Program is to facilitate the transition of Ontario flue-cured tobacco producers to exit the industry at quota buyout payment levels equivalent to that offered through the Tobacco Adjustment Assistance Program in 2005. This expected result hinges on the timely replacement of the existing quota system with a new licensing system. As the current tobacco quota system is no longer an appropriate mechanism to control production and the entry and exit of producers, repealing the current production controls and providing transition assistance will help place farmers on the same footing as other agricultural commodity producers.

iii) Funding to Health to accelerate tripartite negotiations in British Columbia and begin negotiations with other provinces, supported by investments in health innovation and core health services for First Nations ($105.9 million)

As investments are being made over a five-year period (2008-09 to 2012-13), funding sought in these

Supplementary Estimates will be used to: accelerate ongoing tripartite negotiations with the Province of British Columbia and the British Columbia First Nations Leadership Council; stabilize and maintain basic service levels in the non-insured health benefits, primary care, and health facilities and infrastructure programs; and support health service innovations that both improve service quality and better align federal and provincial health services for First Nations.

iv) Funding to Atomic Energy of Canada Limited to support the completion of CANDU reactor refurbishment projects ($100.0 million)

Funding of $100 million will be used to address a cash shortfall caused by unexpected technical challenges on CANDU reactor refurbishment contracts. The refurbishment of CANDU reactors involves the replacement of core components of the reactor. While Atomic Energy of Canada Limited (AECL) is uniquely positioned to undertake the refurbishment of CANDU reactors, these projects are the first-of-a-kind, making them inherently complex.

v) Funding to Finance to increase a debt payment to international organizations on behalf of poor countries as part of the Multilateral Debt Relief Initiative ($100.0 million)

This is a supplementary transfer under the Multilateral Debt Relief Initiative (MDRI) which helps the Government fulfill its commitment to double aid to Africa in fiscal year 2008-09, a commitment made by the Prime Minister and set out in Budget 2008. In 2005, the Government committed a total of $2.5 billion to MDRI, which cancels the debts that the world's poorest countries owe to major international financial institutions. This payment, worth $100 million to the African Development Fund, will cover a future portion of Canada's share of the cost of MDRI. By providing the funds in advance, this payment will generate a large discount worth roughly $100 million that will benefit Canada by further reducing our future commitments to this initiative. In effect, this $100 million payment will reduce our total current and future commitments by $200 million.

vi) Funding to the Canadian International Development Agency for the Canadian contribution to the World Bank's Climate Investment Funds pilot program to support climate change adaptation ($85.0 million )

Canada committed to support the World Bank Climate Investment Funds pilot program through the G8 Finance Ministers' Statement on the Climate Investment Funds at the 2008 G8 Finance Ministers' Osaka Summit. The objective of the pilot program is to provide interim and scaled-up funding to help developing countries in their efforts to mitigate rises in greenhouse gas emissions and adapt to climate change. Funds sought in these Supplementary Estimates will be used to support Canadian participation in the pilot program, which will allow Canada to demonstrate its commitment to assist developing countries in adapting to the challenges of climate change.

vii) Funding to the Canadian International Development Agency for humanitarian assistance and increased support in micronutrient programming with a particular focus on vulnerable regions such as the Horn of Africa and the Congo ($65.0 million)

The African continent is facing multiple humanitarian crises brought on by the combined impact of drought, global food crisis and fast-evolving political crises, particularly in the Horn of Africa and the Congo. With the increase in funding, the Agency will increase the Canadian response to these emergencies via grant payments to trusted multilateral non-government organization (NGO) partners such as the United Nations World Food Programme, the United Nations Children's Fund (UNICEF), and the International Committee of the Red Cross (ICRC). Funds will be used to cover a range of humanitarian assistance such as food, water and sanitation and the provision of micronutrients such as iron and Vitamin A.

viii) Funding to Agriculture and Agri-Food for the non-Business Risk Management Elements of Growing Forward ($58.2 million)

The non-Business Risk Management elements of Growing Forward are new agricultural programs that support innovation, new technologies, domestic and international trade, the environment, food safety, biosecurity, traceability, regulatory efficiency, and rural and co-operative activities. Launched on April 1, 2008, these new agricultural programs replaced the previous five-year Agricultural Policy Framework (2003-2008). Funding sought in these Supplementary Estimates will be used to support programming in the areas of environment, innovation and renewal, and program implementation under the new Growing Forward programming in 2008-09.

ix) Incremental funding to Indian Affairs and Northern Development to offset fuel price increases for the benefit of First Nation and Northern communities, under the Capital Facilities Maintenance Program ($53.8 million)

Despite recent drops in fuel prices, the trend over the past three years has been upward, resulting in increased costs for the Capital and Facilities Maintenance program. This funding for the Program is a short term measure to address increased operating costs for buildings, vehicles and power generation caused by higher fuel prices. Fuel is required to maintain and operate critical community assets in approximately 600 First Nations communities (reserves) which are not linked to provincial electrical grids. This includes fuel to heat and operate community buildings such as schools, wastewater plants, and nursing stations; run diesel generators; and operate essential vehicles such as emergency vehicles, snow ploughs and school buses.

x) Funding to the Canadian International Development Agency to match Canadian public donations to the international response to Cyclone Nargis in Burma and the earthquake in China ($53.4 million)

The Government announced on May 15, 2008, that it would match the contributions of Canadians to humanitarian organizations responding to either or both disasters. The Government matched over $53 million of Canadian public contributions. Funds sought in these Supplementary Estimates will be used to compensate for the Agency's internal reallocation of funds used to provide humanitarian support to both countries.

2. Statutory budgetary spending is expected to increase by $2.479 billion and is mainly attributable to the following forecast changes:

i) Natural Resources for payments to the Newfoundland Offshore Petroleum Resource Revenue Fund ($1,569.5 million)

In accordance with the Canada-Newfoundland Atlantic Accord Implementation Act , statutory payments are made to the Newfoundland Offshore Petroleum Resource Revenue Fund in amounts equal to royalty, provincial corporate income tax and other miscellaneous revenues generated in the offshore.

ii) Natural Resources for Newfoundland Fiscal Equalization Offset Payments ($399.0 million)

Regulations under the provisions of the Fiscal Equalization Offset Payments in the Canada-Newfoundland Atlantic Accord Implementation Act allow Newfoundland and Labrador to be compensated for losses in equalization payments due to increases in offshore oil and gas revenues. The forecast equalization offset payment for 2008-09 will be approximately $399 million.

iii) Chief Electoral Officer to prepare and conduct the 40th General Election (October 14, 2008) and to prepare for the 41st General Election ($247.8 million)

The increased forecast of spending for the Chief Electoral Officer covers the expenses incurred in 2008-09 for the 40th general election (October 14, 2008) under the Canada Elections Act , as well as expenses for readiness activities for the next general election.

iv) Natural Resources for payments to the Nova Scotia Offshore Revenue Account ($148.0 million)

In accordance with the Canada-Nova Scotia Atlantic Accord Implementation Act , statutory payments are made to the Nova Scotia Offshore Revenue Account in amounts equal to royalty, provincial corporate income tax and other miscellaneous revenues generated in the offshore.

v) Human Resources and Skills Development for an increase to the forecast of Guaranteed Income Supplement benefit payments based on updated population and average monthly rate forecasts ($63.0 million)

The Guaranteed Income Supplement (GIS) provides additional income, on top of the Old Age Security pension, to low-income seniors living in Canada. The GIS-eligible population represents a sub-element of the broader senior population. To be eligible for the GIS benefit, recipients must be receiving the Old Age Security pension and meet the income requirements. The GIS is based on a recipient's annual income, or the income of a recipient and their spouse or common-law partner. The increase of $63 million is a combination of two factors: an increase in the estimated number of beneficiaries from 1,619,274 to 1,635,855, which accounts for an increase of $78.6 million; and a decrease in the forecasted average monthly rate from $396.06 to $395.26, which accounts for a decrease of $15.6 million.

vi) Human Resources and Skills Development for a decrease to the forecast of Old Age Security benefit payments based on updated population and average monthly rate forecasts (a decrease of $368.0 million)

Old Age Security benefits are available to most Canadians over the age of 65 who have lived in Canada for at least 10 years after reaching age 18. The decrease of $368 million is a combination of three factors: an increase in the estimated number of beneficiaries from 4,505,101 to 4,515,695, which accounts for an increase of $62.4 million; a decrease in the forecasted average monthly rate for the OAS pension from $489.82 to $481.16, which accounts for a decrease of $469.4 million; and an increase in the anticipated OAS benefit re-payment, which will increase the estimated OAS benefit payments by $39 million.

Major Changes in these Supplementary Estimates

The purpose of this section is to describe changes to government organization and structure and changes in authorities (Votes and Statutory items), since the tabling of the 2008-09 Supplementary Estimates (B).

Changes to Government Organization and Structure:

Pursuant to the Public Service Rearrangement and Transfer of Duties Act, the Government announced a series of reorganizations to the structure of certain ministries. The reorganizations resulted in the following changes to these Supplementary Estimates:

• Order in Council P.C. 2007-1310 transfers from the Minister of Transport to the Minister of Human Resources and Skills Development, the powers, duties and functions in the administration of the ecoAUTO Rebate Program relating to the processing of individual applications for the rebate, effective August 17, 2007.

Also, Statutes of Canada 2008, Chapter 22, cited as the Specific Claims Tribunal Act; establishes the Specific Claims Tribunal and the Registry of the Specific Claims Tribunal, specifies their mandate, makes consequential amendments to other Acts, effective October 18, 2008.

Changes to Votes and Statutory Items

Changes to authorities implemented through these Supplementary Estimates include Votes and Statutory items that contain specific authorities that differ from those included in the 2008-09 Main Estimates, Supplementary Estimates (A), 2008-09 and Supplementary Estimates (B), 2008-09, as well as new expenditure authorities appearing for the first time. Consistent with a 1981 ruling by the Speaker of the House of Commons, the Government has made a commitment that the only legislation that will be enacted through the Estimates process, other than cases specifically authorized by Statute, will be amendments to previous Appropriation Acts.

The following new Votes have been added since Supplementary Estimates (B), 2008-09:

Foreign Affairs and International Trade - Department

Vote 13c - Passport Canada - Operating expenditures

Human Resources and Skills Development - Canada Mortgage and Housing Corporation

Vote 16c - To increase from $450,000,000,000 to $600,000,000,000 the limit of the aggregate outstanding insured amount of all insured loans by Canada Mortgage and Housing Corporation, pursuant to paragraph 11(b) of the National Housing Act

Indian Affairs and Northern Development - Registry of the Specific Claims Tribunal

Vote 62c - Program expenditures

The following Vote wording (underscored) has been amended since Supplementary Estimates (B), 2008-09:

Canadian Heritage - Status of Women - Office of the Co-ordinator

Vote 100c - Operating expenditures and the payment to each member of the Queen's Privy Council for Canada who is a Minister without Portfolio or a Minister of State who does not preside over a Ministry of State of a salary not to exceed the salary paid to Ministers of State who preside over Ministries of State under the Salaries Act , as adjusted pursuant to the Parliament of Canada Act and pro rata for any period of less than a year - To authorize the transfer of $332,462 from Canadian Heritage Vote 1, Appropriation Act No. 2, 2008-2009 for the purposes of this Vote

Human Resources and Skills Development - Department

Vote 1c - Operating expenditures and

( a ) authority to make recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Account;
( b ) pursuant to paragraph 29.1(2)( a ) of the Financial Administration Act , authority to spend revenues received in the fiscal year arising from the provision of Public Access Programs Sector services ; services to assist provinces in the administration of provincial programs funded under Labour Market Development Agreements ; and receiving agent services offered to Canadians on behalf of Passport Canada to offset related expenditures incurred in the fiscal year; and
( c ) the payment to each member of the Queen's Privy Council for Canada who is a Minister without Portfolio or a Minister of State who does not preside over a Ministry of State of a salary not to exceed the salary paid to Ministers of State who preside over Ministries of State under the Salaries Act , as adjusted pursuant to the Parliament of Canada Act and pro rata for any period of less than a year - To authorize the transfer of $15,586,562 from Human Resources and Skills Development Vote 5, and $1,740,800 from Transport Vote 1, Appropriation Act No. 2, 2008-2009 for the purposes of this Vote

The following new statutory items have been added since Supplementary Estimates (B), 2008-09:

Human Resources and Skills Development - Department

Canada Disability Savings Bond payments to Registered Disability Savings Plan (RDSP) issuers on behalf of RDSP beneficiaries to encourage long-term financial security of eligible individuals with disabilities

Canada Disability Savings Grant payments to Registered Disability Savings Plan (RDSP) issuers on behalf of RDSP beneficiaries to encourage long-term financial security of eligible individuals with disabilities

Natural Resources - Department

Newfoundland Fiscal Equalization Offset Payments

Grant to the University of Calgary, Institute for Sustainable Energy, Environment, and Economy

Grant to the Canada Foundation for Sustainable Development Technology

Overview of Summary Tables

This section provides an overview of the following summary tables provided in the Supplementary Estimates.

1. Summary of these Supplementary Estimates
2. Summary of Estimates to Date for 2008-09
3. Proposed Schedules to the Appropriation Bill
4. Statutory Items in these Supplementary Estimates
5. Summary of Changes to Voted Appropriations
6. Budgetary Supplementary Estimates by Standard Object of Expenditure
7. Allocations from Treasury Board Central Votes
8. Horizontal Items included in these Supplementary Estimates
9. Transfers between organizations included in these Supplementary Estimates
10. $1 Items included in these Supplementary Estimates

1. Summary of these Supplementary Estimates

This table identifies Budgetary ² and Non-Budgetary ³ Supplementary Estimates by department, agency and Crown corporation, and by type of parliamentary authority (annual Vote and Statutory requirements).

The first two columns entitled “Previous Authorities” represent Estimates to date as presented in the Main Estimates, Supplementary Estimates (A) and Supplementary Estimates (B). The third column entitled “Permanent Allocations from TB Central Votes” represents permanent allocations from Treasury Board centrally-managed Votes which has an impact on departments' spending authorities. The column entitled “Total authorities to date” represents the departments' total Authorities which is the starting point for these Estimates.

The next six columns entitled “These Supplementary Estimates” are the current requirements as provided in Supplementary Estimates (C). These requirements are split into three categories: Transfers, To be Voted ⁴ and Statutory ⁵ .

The last two columns entitled “Total Estimates to Date” provides the reader with an update of total Budgetary and Non-Budgetary requirements for 2008-09.

2. Summary of Estimates to Date for 2008-09

This table displays Main Estimates together with Supplementary Estimates (A), Supplementary Estimates (B) and amounts being requested in these Supplementary Estimates (C) and contains a breakdown of funding by Budgetary and Non-Budgetary/Voted and Statutory requirements.

2.	Budgetary expenditures encompass the cost of servicing the public debt; operating and capital expenditures; transfer payments and subsidies to other levels of government, organizations and individuals; and payments to Crown corporations and separate legal entities.
3.	Non-budgetary expenditures (loans, investments and advances) are outlays that represent changes in the composition of the financial assets of the Government of Canada.
4.	Voted requirements are those for which the government must seek Parliamentary approval through an Appropriation Act. For additional information on votes and vote wording, see the Proposed Schedule to the Appropriation Bill.
5.	Statutory authorities are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the terms and conditions under which they may be made. Statutory spending is included in the Supplementary Estimates for information only.

3. Proposed Schedules to the Appropriation Bill

This table provides the reader with a preview of the Appropriation Bill. As noted previously, Supplementary Estimates directly support the Bill. This table provides a list of Vote numbers, Vote wording and the requested funds that will be proposed to Parliament for approval. There are two schedules to the Appropriation Bill in Supplementary Estimates: Schedule 1 identifies those items for the fiscal year ending March 31, 2009 whereas Schedule 2 identifies those items for the fiscal year ending March 31, 2010, specifically, multi-year appropriations for the Canada Revenue Agency and Parks Canada Agency.

Only positive adjustments to departmental appropriations are included in the Proposed Schedules to the Appropriation Bill. Where an organization has a net zero or negative amount displayed in these Supplementary Estimates, no change to existing spending authority is requested of Parliament.

Once the Appropriation Bill is approved, the Vote wording becomes the governing conditions under which expenditures may be made. The following kinds of Votes can appear in Supplementary Estimates:

a)	Program Expenditures Votes - This type of Vote is used when there is no requirement for either a separate “Capital Expenditures” Vote or “Grants and Contributions” Vote because neither equals or exceeds $5 million. In this case, all program expenditures are charged to the one Vote.
b)	Operating Expenditures Votes - This type of Vote is used when there is a requirement for either a “Capital Expenditures” Vote or a “Grants and Contributions” Vote or both; that is, when expenditures of either type equals or exceeds $5 million. Where they do not, the appropriate expenditures are included in the “Program Expenditures” Vote.
c)	Capital Expenditures Votes - This type of Vote is used when the capital expenditures in a program equal or exceed $5 million. Expenditure items in a capital Vote could include individual items expected to exceed $10,000 for the acquisition of land, buildings and works (Standard Object 8), as well as the acquisition of machinery and equipment (Standard Object 9), or for purposes of constructing or creating assets, where a department expects to draw upon its own labour and materials, or employs consultants or other services or goods (Standard objects 1 to 9). Different threshold limits may be applied for different capital expenditure classes at the departmental level.
d)	Grants and Contributions Votes - This type of Vote is used when the grants and contributions expenditures in a program equal or exceed $5 million. It should be noted that the inclusion of a grant, contribution or other transfer payment item in Supplementary Estimates imposes no requirement to make a payment, nor does it give a prospective recipient any right to the funds. It should also be noted that in the Vote wording, the meaning of the word “contributions” is considered to include “other transfer payments” because of the similar characteristics of each.
e)	Non-Budgetary Votes - This type of Vote, identified by the letter “L”, provides authority for spending in the form of loans or advances to, and investments in, Crown corporations and loans or advances for specific purposes to other governments, international organizations or persons or corporations in the private sector.
f)	Special Votes: Crown Corporation Deficits and Separate Legal Entities - Where it is necessary to appropriate funds for a payment to a Crown corporation or for the expenditures of a legal entity that is part of a larger program, a separate Vote is established. A legal entity for these purposes is defined as a unit of government operating under an Act of Parliament and responsible directly to a Minister.

g)	Special Votes: Treasury Board Centrally Financed Votes - To support the Treasury Board in performing its statutory responsibilities for managing the government's financial, human and materiel resources, a number of special authorities are required and these are outlined below.
	(i)	Government Contingencies Vote - This Vote serves to supplement other appropriations to provide the Government with sufficient flexibility to meet urgent or unforeseen expenditures where a valid cash requirement exists due to the timing of the payment or where specific authority is required to make the payment, such as for the payment of grants not listed in the Estimates. This authority to supplement other appropriations is provided until parliamentary approval can be obtained and as long as the expenditures are within the legal mandate of the organization.
	(ii)	Government-Wide Initiatives Vote - This Vote supplements other appropriations in support of the implementation of strategic management initiatives in the Public Service of Canada.
	(iii)	Compensation Adjustments Vote - This Vote supplements other appropriations to provide funding for the increased personnel costs of collective agreements between the Treasury Board and collective bargaining units representing public servants, as well as collective agreements signed by separate employers, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act.
	(iv)	Public Service Insurance Vote - This Vote provides for the payment of the employer's share of health, income maintenance and life insurance premiums; for payments to or in respect of provincial health insurance plans; provincial payroll taxes; pension, benefit and insurance plans for employees engaged locally outside Canada; and to return to certain employees their share of the unemployment insurance premium reduction.
	(v)	Operating Budget Carry Forward Vote - This Vote supplements other appropriations for the operating budget carry forward from the previous fiscal year.
	(vi)	Paylist Requirements Vote - This Vote supplements other appropriations for requirements related to parental and maternity allowances, entitlements on cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration including members of the Royal Canadian Mounted Police and the Canadian Forces, where these have not been provided from Vote 15, Compensation Adjustments.

4. Statutory Items in these Supplementary Estimates

This table provides Parliament with an update on significant changes to expenditure forecasts of major statutory items. Statutory items are those that Parliament has approved through other legislation that sets out both the purpose of the expenditures and the terms and conditions under which they may be made. Statutory spending is displayed in the Supplementary Estimates for information only.

5. Summary of Changes to Voted Appropriations

This table displays all Voted information displayed in these Supplementary Estimates in Ministry order.

The first column (Vote Number) indicates the Vote that is to be augmented through these Supplementary Estimates. The letter accompanying the Vote indicates which Supplementary Estimates was used to augment the Vote.

The second column (Gross Amount) displays the total amount of funding being sought in these Supplementary Estimates by the respective department.

The third columns (Less: Available Spending Authorities) represents unused spending authority being used by organizations to minimize the amount of additional spending authority being requested in these Supplementary Estimates. Additional information on these amounts is provided in the respective departmental detail sections.

The fourth column (Net Amount) displays the net amount of incremental funding being reflected in these

Supplementary Estimates. However, it should be noted that the Proposed Schedules to the Appropriation Bill do not reflect funding for organizations where the net amount is zero or negative.

6. Budgetary Supplementary Estimates by Standard Object of Expenditure

To determine and report more accurately the impact of government expenditures on the rest of the economy, the net amount of government purchases by standard object must be determined. All departments, including those that use revolving funds, must charge their expenditures for purchases to standard object expense categories. Standard objects are the highest level of object classification used for parliamentary and executive purposes, and are reported in the Main and Supplementary Estimates and the Public Accounts. The standard objects of expenditure are as follows:

1. Personnel
2. Transportation and communications
3. Information
4. Professional and special services
5. Rentals
6. Purchased repair and maintenance
7. Utilities, materials and supplies
8. Acquisition of land, buildings, and works
9. Acquisition of machinery and equipment
10. Transfer payments
11. Public debt charges
12. Other subsidies and payments

A brief explanation of each Standard Object is provided at the end of the introduction section.

7. Allocations from Treasury Board Central Votes

This summary table provides a comprehensive list of allocations from Treasury Board (TB) Central Votes for Government Contingencies, Government-wide Initiatives, Compensation Adjustments, Operating Budget Carry Forward and Paylist Requirements, where applicable.

Government Contingencies (TB Vote 5) - This summary table provides a comprehensive list of organizations that have received temporary Treasury Board Contingency Vote (TB Vote 5) funding. Temporary funding can be provided for urgent miscellaneous, minor and unforeseen expenditures, which were not provided for in the Main Estimates and which are required before the next Supplementary Estimates receive Royal Assent. Once Parliament approves the Appropriation Bill for Supplementary Estimates and the Governor General provides Royal Assent, the temporary funding is reimbursed to TB Vote 5.

The following criteria must be met in order for Treasury Board to approve access to TB Vote 5:

• All advances from the Government Contingencies Vote should be considered temporary advances to be covered by items included in subsequent Supplementary Estimates and reimbursed when the associated appropriation act is passed. Exceptions are made for requirements that arise after final Supplementary Estimates for the fiscal year where advances would not be reimbursable.
• An organization's existing appropriation must be insufficient to cover both existing requirements and the new initiative until the next Supply period. To that end, an organization must support any request with a valid cash flow analysis.
• A valid and compelling reason exists, particularly as it relates to the payment of grants, as to why the payment needs to be made before the next Supply period. If not, the payment should be deferred and access to TB Vote 5 denied.
• For grants, the Transfer Payment Policy must be consulted and followed to ensure that a valid, legally incorporated recipient exists and that the organization clearly demonstrates that it needs to make a payment before the next Supply period.

Government-Wide Initiatives (TB Vote 10) - This Vote supplements other appropriations in support of the implementation of strategic management initiatives within the public service of Canada. Departments and agencies are not required to reimburse funding allocated from Vote 10.

Compensation Adjustments (TB Vote 15) - This Vote supplements other appropriations that may need to be partially or fully augmented as a result of adjustments made to terms and conditions of service or employment of the federal public administration, including members of the Royal Canadian Mounted Police and the Canadian Forces, Governor in Council appointees and Crown corporations as defined in section 83 of the Financial Administration Act . Departments and agencies are not required to reimburse funding allocated from Vote 15.

Operating Budget Carry Forward (TB Vote 25) - This Vote supplements other appropriations by authorizing a carry forward of unused funds from the previous fiscal year up to a maximum of five per cent of departments' and agencies' Main Estimates operating budget as was established in the previous fiscal year. Departments and agencies are not required to reimburse funding allocated from Vote 25.

Paylist Requirements (TB Vote 30) - This Vote supplements other appropriations by providing the government with funding to meet legal requirements of the employer such as parental leave, maternity leave, entitlements upon cessation of service or employment and adjustments made to terms and conditions of service or employment of the federal public administration. Departments and agencies may access this Vote throughout the fiscal year.

Departments and agencies are not required to reimburse funding allocated from Vote 30.

 

8. Horizontal Items included in these Supplementary Estimates

A horizontal initiative is an initiative in which partners from two or more organizations have established a formal funding agreement (e.g. Memorandum to Cabinet, Treasury Board submission, federal-provincial agreement) to work toward the achievement of shared outcomes.

This table provides a summary of those items for which funding is sought in these Supplementary Estimates. While the list is not exhaustive, it does provide an overview of initiatives related to these Supplementary Estimates where two or more organizations are seeking incremental funding increases.

9. Transfers between organizations included in these Supplementary Estimates

Departments often request the authority to transfer monies between organizations for various purposes. This table provides a summary of these transactions.

10. $1 Items included in these Supplementary Estimates

Supplementary Estimates often include “one dollar items”, which seek an alteration in the existing allocation of funds or to existing Vote wording (as in the case of loan guarantees) as authorized in the Main Estimates. The purpose of a one dollar item is not to seek new or additional funds, but rather to re-allocate existing spending authorities between Votes and/or to provide appropriate authorities. Therefore, since no new funds are requested, “one-dollar” amount is merely symbolic.

For example, one-dollar items may be used to:

• Transfer funds from one Vote to another;
• Write off debts;
• Adjust loan guarantees;
• Authorize grants; or
• Amend previous appropriation acts.

Detail by Department, Agency and Crown Corporation

Departments, agencies and Crown corporations for which a Minister is responsible, or reports to Parliament, are grouped together to provide a total ministry presentation.

Each organization is divided into four sections:

• Ministry Summary;
• Explanation of Requirements (Voted Appropriations, Funds Available, Transfers and Statutory Appropriations);
• Explanation of Funds Available (if applicable); and
• Transfer Payments (if applicable).

1. Ministry Summary

This table displays all Voted and Statutory information in Ministry order, including:

• Vote number and Vote wording;
• Authorities to date - Main Estimates plus any prior Supplementary Estimates funding and Permanent Allocation from TB Central Votes;
• Transfers between Votes both within and between organizations;
• Adjustments to Appropriations (new funding requests); and
• Total Estimates to date.

Where the total program supplement results in a net zero or negative amount for an organization, this will not form part of the Appropriation Bill for these Supplementary Estimates. Net zero or negative amounts are displayed for information purposes.

2. Explanation of Requirements

This section provides a description of the individual items or initiatives for which spending authority is being requested. Horizontal initiatives affecting more than one organization are flagged as ( horizontal item ) and will be displayed in the summary table “Horizontal Items included in these Supplementary Estimates” presented at the front end of these Supplementary Estimates.

This section also identifies all transfers between and within organizations, whether they relate to: a transfer of monies between organizations to accomplish a particular objective; the transfer of responsibility for the delivery of a program; realignments flowing from machinery changes announced by the government; or transfers within an organization to support program needs. Transfers do not have an impact on new appropriations being requested by organizations. Transfers will be displayed in the Ministry Summary separately from new appropriations and will also be displayed in the summary table dealing with transfers between organizations at the front end of these Supplementary Estimates.

3. Explanation of Funds Available

This section provides information about funds that are used to offset or reduce new spending requirements included in Supplementary Estimates. To minimize the amount of new appropriation authorities requested from Parliament, surplus spending authority available in one Vote can be redirected to another Vote to reduce the overall amount of supplementary spending authority required. As well, surplus spending authority available in a number of frozen allotments can be used with Treasury Board authority to reduce the amount of new appropriations required.

Some examples of surplus spending authority used for offsets include: funds transferred from one Vote to another Vote in the same organization; or funds moved from one fiscal year to another fiscal year in the same organization.

4. Transfer Payments

This table provides a listing of transfer payments.

A transfer payment is a grant, contribution or other payment made for the purpose of furthering program objectives but for which no goods or services are received.

Grants, contributions and other transfer payments differ in several respects:

i)	Contributions are transfer payments where the recipients must meet performance conditions and may be subject to audit;
ii)	Grants are transfer payments made on the basis of established eligibility and not normally subject to audit;
iii)	Grants and their total values have a legislative character and specific descriptions that govern their use; and
iv)	Other transfer payments are transfer payments, other than grants and contributions, based on legislation or an arrangement which may include a formula to determine the annual amounts.

Explanation of the Standard Object of Expenditures

1.	Personnel
		Salaries and wages, overtime, severance pay, retroactive pay and other special pay of civilian continuing (full-time) or term (part-time, seasonal and casual) employees except those of agency and proprietary Crown corporations, as well as members of the military and the Royal Canadian Mounted Police.
		Judges' salaries, those of the Governor General, the Lieutenant-Governors and the indemnities to Members of both Houses of Parliament, and all types of allowances paid to or in respect of continuing and term employees (such as living, terminable, foreign service, isolated post, board and subsistence allowances, shift differential allowances for assistants, and other such allowances).
		Ministers' motor car allowances, and the expense allowances to Senators and Members of the House of Commons.
		The Government's contribution to various employee benefit plans (the Public Service Superannuation Account, the Supplementary Retirement Benefits Account, the Canada Pension Plan Account, the Quebec Pension Plan Account, the Public Service Death Benefit Account and the Employment Insurance Account).
		The Royal Canadian Mounted Police Superannuation Account, the Canadian Forces Superannuation Account and the Members of Parliament Retiring Allowances Account, and the Government's contribution to provincial and other medical and hospital insurance plans and supplementary personnel costs for various purposes.
2.	Transportation and Communications
		Traveling and transportation expenses of Government employees, members of the Canadian Forces and the Royal Canadian Mounted Police, removal expenses of those persons and their dependants, and living and other expenses of such persons on travel status, judges' traveling expenses, and traveling expenses and allowances payable to Senators and Members of the House of Commons.
		Transportation of persons by contract and chartered facilities or by other means (including traveling expenses of persons engaged in field survey work, inspections and investigations), and traveling and transportation of non-Government employees such as travel costs of veterans who are applicants for treatment or pensions.
		Ordinary postage, airmail, registered mail, parcel post special delivery mail, post office box rentals, and any other postal charges.
		Expenditures relating to the transportation of goods other than initial delivery cost on a purchase (which is included in the Standard Object covering the cost of the purchase itself) including charges for courier services provided by outside carriers.
		All costs of telecommunication services by telephone, telegram, cable, teletype, radio and wireless communication (tolls, rates, etc.) and other communication costs such as courier services provided by outside agencies and communication services performed under contract or agreement.
3.	Information
		Advertising services acquired for publicity and general purposes from advertising agencies or directly for time on broadcast media or for space in print media or on outdoor posters or billboards. It includes advertising and creative work services such as graphic artwork.
		Publishing services for commissioning, marketing, distribution and sales of publications sponsored by the department, and for the acquisition of related government publications. Also included are services for printing, duplicating, photocopying, text editing, design of graphics, art work, technical and advisory services such as computerized text processing and mass transmission of printed material. In addition, it includes exposition services such as exhibits and associated audio-visual services related to exhibitions and displays.
		Public relations and public affairs services for attitude and service assessment surveys, sales promotion, marketing, export marketing, public relations and publicity, opinion polls, and contracts to organize and operate focus groups and media monitoring services. It also includes services for speech writing, press releases, briefing, press conferences and special events.

4.	Professional and Special Services
		Provision for all professional services performed by individuals or organizations such as payments (in the nature of fees, commissions, etc.) for the services of accountants, lawyers, architects, engineers, scientific analysts, reporters, and translators; for teachers at various levels of educational institutions; for doctors, nurses and other medical personnel; for management, data processing and other research consultants; and for other outside technical, professional and other expert assistance.
		Payments for hospital treatment, care of veterans and welfare services, payments for the provision of informatics services, payment of tuition for Indians at non-federal schools, purchase of training services under the Adult Occupational Training Act , and payments made to the Canada School of Public Service for training.
		Payments for Corps of Commissionaires services and for other operational and maintenance services performed under contract, such as armoured cars, laundry and dry cleaning, cleaning of buildings, temporary help, hospitality, storage and warehousing, and other business services, as well as payments made to the Department of Public Works and Government Services for contract administration.
5.	Rentals
		Rental of properties required for special purposes by the various departments and for the accommodation of government offices and services by the Department of Public Works and Government Services.
		Hire and charter - with or without crew - of vessels, aircraft, motor vehicles and other equipment, and rental of telecommunication and office equipment including computers.
	Storage and warehousing services is, however, in Standard Object 4 even though it involves the rental of space.
6.	Purchased Repair and Maintenance
		The repair and upkeep under contract of the durable physical assets provided for in Standard Object 8 for Acquisition of Land, Buildings, and Works and of equipment provided for in Standard Object 9 for Acquisition of Machinery and Equipment.
		Payments to the Department of Public Works and Government Services for tenant services.
		Materials, supplies and other charges for repairs undertaken by a department directly are coded to other objects, according to the nature of the purchase.
7.	Utilities, Materials and Supplies
		The provision for all payments for services of a type normally provided by a municipality, or public utility service such as the supply of water, electricity, gas, etc., and includes water, light, power and gas services, and payment for such services whether obtained from the municipality or elsewhere.
		The provision for materials and supplies required for normal operation and maintenance of government services such as: o     gasoline and oil purchased in bulk; fuel for ships, planes, transport and heating   o     feed for livestock   o     food and other supplies for ships and other establishments   o     livestock purchased for ultimate consumption or resale   o     seed for farming operations   o     books and other publications purchased for outside distribution   o     uniforms and kits   o     photographs, maps and charts purchased for administrative and operational purposes   o     laboratory and scientific supplies, including samples for testing   o     drafting, blueprinting and artists' supplies; supplies for surveys and investigations   o     chemicals   o     hospital, surgical and medical supplies   o     works of art for exhibits, and historical material for galleries, museums and archives   o     char service supplies   o     coal and wood   o     electrical supplies   o     repair parts other than parts normally acquired with equipment at the time of purchase for aircraft,       ships, road vehicles, and for communication and other equipment; and all other materials and       supplies.
8.	Acquisition of Land, Buildings, and Works
		All expenditures for the acquisition of buildings, roads, irrigation works, canals, airports, wharves, bridges and other such types of fixed assets.
		Improvements involving additions or changes of a structural nature, and for installing fixed equipment which is essentially a part of the work or structure such as elevators, heating and ventilating equipment.
		All reconstruction of such types of physical assets and such projects performed under contract or agreement.
		The purchase of land.
	Expenditures pursuant to contracts for new construction for casual employees hired or continuing employees assigned to work full or part-time on specified projects, travel, professional services, equipment rentals, equipment maintenance and of materials purchased directly for use on such projects are charged to the relevant standard objects (Standard Objects 1 to 9).
9.	Acquisition of Machinery and Equipment
		Expenditures for the acquisition of all machinery, equipment, office furniture and furnishings, electronic data processing and electronic or other office equipment.
		Microfilming equipment and supplies, inter-office communication equipment, postal meter machines, machine records and all other office equipment.
		Motor vehicles, aeroplanes, tractors, road equipment, telecommunications and related equipment, laboratory and other scientific equipment, vessels, icebreakers and other aids to navigation and all other types of light and heavy equipment; includes ammunition and various types of equipment for National Defence, such as ships, aircraft, mechanical equipment, fighting vehicles, weapons, engines and such spare parts and supplies as are normally acquired with that equipment at the time of purchase.
10.	Transfer Payments
		Grants, contributions, and all other transfer payments made by Government, such as:
		Major social assistance payments made to persons such as Old Age Security benefits and related allowances, Veterans' pensions and allowances.
		Payments to the provinces and territories under the Constitution Acts , the Federal-Provincial Fiscal Arrangements Act , the Canada Health and Social Transfers and for official languages.
		Payments to Indians and Inuit in support of self-government initiatives, health, educational, social and community development programming and in respect of native claims.
		Payments to the territorial governments pursuant to financing agreements entered into between the Minister of Finance and the respective territorial Minister of Finance.
		Capital assistance to industry; research grants and other assistance towards research carried on by nongovernmental organizations; scholarships.
		Sustaining grants to national and international non-profit organizations.
		Contributions to international organizations and assessments for membership in such organizations, such as the contribution to the International Food Aid Program and Canada's assessment for membership in the United Nations.

Most of the payments in this standard object category are identified in the Estimates as “Grants” or “Contributions”. The former are not subject to audit and are therefore restricted by Parliament as to amount and recipient and often as to purpose through the approval of the Supply bill which specifies “grants listed in the Estimates”; the latter are conditional and subject to audit and are not so restricted. Grants and their total values have a legislative character and specific descriptions that govern their use.

11.	Public Debt Charges
		Interest on the unmatured debt of Canada (including Treasury Bills) and on other liabilities such as trust and other special funds.
		The cost of issuing new loans, amortization of bond discount, premiums and commissions.
		The cost of servicing and administering the Public Debt.
12.	Other Subsidies and Payments
		Payments to Crown corporations that include those made to provide for operating deficits as well as other transfers paid to Crown corporations.
		Payments to certain non-budgetary accounts (such as the government contributions to agricultural commodities stabilization accounts, as well as benefits under the Veterans Land Act), as well as the write- offs of various types of losses, the annual adjustment of reserves for financial claims and some other miscellaneous items referred to as “Sundries”.
	Miscellaneous expenditures include licences, permits and payments for dockage, towage, wharfage and mooring privileges; bonding of government employees, loss of personal effects, and expenditures for small miscellaneous articles and services. Also included are many small items and services that do not lend themselves to identification under specific headings detailed in this summary.

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