Date sent: July 19, 2012

To: Deputy Chief Financial Officers

Message on behalf of Sylvain Michaud, Executive Director, Government Accounting Policy and Reporting, Office of the Comptroller General

The purpose of this communication is to provide additional guidance with respect to the preparation of the 2012-2013 quarterly financial reports (QFRs) to Shared Services Canada (SSC) and organizations affected by the transfer of responsibilities to SSC.

As a result of the creation of SSC on August 4, 2011 and the subsequent passing of the Order-in-Council (OIC) on November 15, 2011, certain responsibilities across 43 departments and agencies were transferred to SSC. All unexpended authorities relating to responsibilities transferred to SSC were deemed to have been appropriated as of the OIC dates resulting in reductions to transferring out departments' authorities available for use in 2011-2012. All transactions related to SSC incurred by transferring out departments from the dates of the OIC were to be reported by SSC at year end.

As per Treasury Board Accounting Standard (TBAS) 1.3 Departmental and Agency Quarterly Financial Report, departments and agencies must present comparative financial information for the preceding fiscal year. To ensure the consistent presentation and disclosure of information across departments and agencies related to the SSC transfer, additional guidance on comparative financial information is being provided for the 2012-2013 QFRs.

Organizations affected by the transfer to SSC

For Q1 and Q2 quarterly financial reports for all departments and agencies (Q1 for Public Works and Government Services Canada (PWGSC)), the comparative figures reported in 2011-2012 remain the same. In both the Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables, the total amount available for use for the year and the planned expenditures for the year will include the amount deemed later to have been transferred to SSC. Expenditure information in 2011-2012 for the quarter and year-to-date will include all transactions incurred up to quarter end related to responsibilities subsequently transferred to SSC.

For the Q3 quarterly financial report (Q2 and Q3 for PWGSC), departments will exclude from both the Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables in the amount available for use for the year and the planned expenditures for the year the amount deemed to have been transferred to SSC from their 2011-2012 comparative information. The following footnotes should be added to both the Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables referencing the columns Total available for use for the year and the Planned expenditures for the year ending March 31, 2012:

Pursuant to section 31.1 of the Financial Administration Act and Order-in-Council P.C. 2011-1297 effective November 15, 2011 (For PWGSC refer to Order-in-Council P.C. 2011-877 effective August 4, 2011), $xxx thousand is deemed to have been appropriated to Shared Services Canada (vote type), which results in a reduction for the same amount in (transferring out department or agency name), Vote X, Appropriation Act No.1, 2011-2012.

When expenditures incurred on behalf of SSC from November 15 – December 31, 2011 can be reasonably estimated, expenditure information presented for 2011-2012 in both tables will only include those transactions related to activities transferred to SSC that were incurred before the OIC date. The following footnote should be added to both the Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables referencing the columns Used during the quarter ended, Expended during the quarter ended at December 31, 2011 (September 30 and December 31, 2011 for PWGSC) and Year to date used at quarter-end:

Excludes an amount of $xxx thousand incurred on behalf of Shared Services Canada from the date of transfer of November 15 to December 31, 2011.

When expenditures incurred on behalf of SSC from November 15 – December 31, 2011 cannot be reasonably estimated, expenditure information presented for 2011-2012 will include transactions related to activities transferred to SSC incurred after the OIC date. The following footnote should be added to both the Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables referencing the columns Used during the quarter ended and Expended during the quarter ended at December 31, 2011 (September 30 and December 31, 2011 for PWGSC):

Includes amounts incurred on behalf of Shared Services Canada from the date of transfer of November 15 to December 31, 2011. It is not possible to reasonably estimate the amount of expenditures incurred on behalf of Shared Services Canada.

Departments should disclose the transfer in the Significant changes in relation to operations, personnel and programs section of their respective QFRs. Also, it is expected that departments and agencies will speak to any significant variances that occur as a result of the transfer to SSC as applicable.

Shared Services Canada

For the Q1 quarterly financial report, SSC will not provide any 2011-2012 comparative financial information for the amount deemed to have been transferred to SSC in either table.

For Q2 and Q3 quarterly financial reports, no 2011-2012 tables should be provided. However SSC should provide 2011-2012 comparative financial information for the amount deemed to have been transferred to SSC by way of a footnote referencing the columns Available for use for the year and Planned expenditures for the year in both the 2012-2013 Statement of Authorities and the Departmental budgetary expenditures by Standard Object tables:

Pursuant to section 31.1 of the Financial Administration Act and Order-in-Council P.C. 2011-877 effective August 4, 2011 (for Q3 add P.C. 2011-1297 effective November 15, 2011), $xxx thousand is deemed to have been appropriated to Shared Services Canada for the year ended March 31, 2012.

No 2011-2012 comparative financial information for the transactions related to the activities transferred to SSC incurred after the OIC dates should be referenced in either the 2012-2013 Statement of Authorities or the Departmental budgetary expenditures by Standard Object tables.

If you have any questions, please do not hesitate to contact Claire Osborne at 613-946-4365, or Andrée Pelchat at 613-957-9853.

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