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Treasury Board of Canada Secretariat - 2014–15 Report on Plans and Priorities


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Treasury Board of Canada Secretariat
Future-Oriented Statement of Operations
For the Year Ending March 31, 2015


Future-Oriented Statement of Operations for the Year Ending March 31
(in thousands of dollars)
Elements Estimated Results 2014 Planned Results 2015
Expenses
Government-Wide Funds and Public Service Employer Payments (Note 6)
2,705,753 2,699,379
Management Frameworks
55,885 55,697
People Management
66,398 77,151
Expenditure Management
35,418 34,513
Financial Management
35,799 34,258
Internal Services
84,657 87,984
Total expenses 2,983,910 2,988,982
Revenues
Recovery of pension administration costs
8,393 8,885
Internal support services
6,709 6,709
Parking fees – Government-wide
3,370 3,370
Other
201 30
Gross revenues
18,673 18,994
Revenues earned on behalf of government
(4,981) (4,853)
Total net revenues 13,692 14,141
Net cost of operations 2,970,218 2,974,841

The accompanying notes form an integral part of this future-oriented statement of operations.

1. Departmental Strategic Outcome and Programs

For more information on the Secretariat's strategic outcome and programs refer to Section II of the Report on Plans and Priorities.

2. Methodology and Significant Assumptions

The preparation of the future-oriented statement of operations was based on government priorities and departmental plans as described in the Report on Plans and Priorities.

The information is based on estimated results for fiscal year 2013–14, and planned results for fiscal year 2014–15.

The main assumptions underlying the forecasts are as follows:

  • The Secretariat's activities will remain substantially the same as the previous year's activities;
  • Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue; and
  • These assumptions have been adopted as at February 10, 2014.

3. Variations and Changes to the Forecast Financial Information

Forecasts have been made for 2013–14 and for 2014–15. Actual results achieved for both years are likely to vary from the forecast information presented.

In preparing the future-oriented statement of operations, the Secretariat has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include the following:

  • Timing and number of acquisitions and the disposal of property, plant and equipment, which may affect gains or losses and the amortization expense;
  • Implementation of new collective agreements; and
  • Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.

Once the Report on Plans and Priorities is presented, the Secretariat will not be updating the forecasts for any changes to financial resources made in ensuing supplementary estimates. Variances will be explained in the Secretariat's Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented statement of operations has been prepared using Government of Canada accounting policies that came into effect for the 2011–12 fiscal year and that are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Expenses

Expenses are recorded on an accrual basis and are recorded when goods are received or services are rendered. These expenses include:

  • Services provided without charge by other government departments for accommodation and legal services at their estimated cost;
  • Vacation pay and compensatory leave, as well as severance benefits, when earned by employees under their respective terms of employment; and
  • Amortization of tangible capital assets which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

b) Revenues

Revenues are accounted for during the period in which the related transactions, or the event that had given rise to the revenues, occurred.

Revenues that are non-respendable are not available to discharge the Secretariat's liabilities. While the Secretary is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

5. Parliamentary Authorities

The Secretariat receives most of its funding through expenditure authorities provided by Parliament. Financial reporting of authorities provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Items recognized in the Future-Oriented Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the Secretariat has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to requested authorities
(in thousands of dollars)
Elements Estimated 2014 Planned 2015
Net cost of operations 2,970,218 2,974,841
Adjustment for items affecting net cost of operations but not affecting authorities:
Services provided without charge by other government departments
(23,453) (21,014)
Gain on disposal of tangible capital assets
11 0
Decrease (increase) in vacation pay and compensatory leave liabilities
593 (226)
Decrease in employee future benefits
11,192 2,800
Amortization of tangible capital assets
(1,472) (1,493)
Refunds of previous years' expenditures
5,448 3,623
Total items affecting net cost of operations but not affecting authorities (7,681) (16,310)
Adjustment for items not affecting net cost of operations but affecting appropriations:
Acquisition of tangible assets
7,315 3,191
Prepaid expenses
22 9
Total items not affecting net cost of operations but affecting authorities 7,337 3,200
Requested authorities 2,969,874 2,961,731

b) Authorities requested
(in thousands of dollars)
Elements Estimated 2014 Planned 2015
Authorities requested:
Vote 1 – Program expenditures
230,134 231,215
Vote 5 – Government contingencies
746,300 750,000
Vote 10 – Government-wide initiatives
2,093 3,193
Vote 20 – Public service insurance
2,268,180 2,260,002
Vote 25 – Operating budget carry forward
449,796 1,600,000
Vote 30 – Paylist requirements
1,486,574 1,450,000
Vote 33 – Capital budget carry forward
0 600,000
Subtotal 5,183,077 6,894,410
Statutory authorities:
Contributions to employee benefit plans
28,461 27,434
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement Acts, and the Employment Insurance Act
443,000 443,000
President of the Treasury Board – Salary and car allowance
79 80
Payments under the Public Service Pension Adjustment Act
20 0
Subtotal 471,560 470,514
Less:
Authorities to transfer or lapse:
Vote 1 – Program expenditures
0 0
Vote 5 – Government contingencies
(746,300) (750,000)
Vote 10 – Government-wide initiatives
(2,093) (3,193)
Vote 20 – Public service insurance
0 0
Vote 25 – Operating budget carry forward
(449,796) (1,600,000)
Vote 30 – Paylist requirements
(1,486,574) (1,450,000)
Vote 33 – Capital budget carry forward
0 (600,000)
Subtotal (2,684,763) (4,403,193)
Requested authorities 2,969,874 2,961,731

The authorities presented reflect current forecasts of statutory items; approved initiatives included and expected to be included in Estimates documents; and (when reasonable estimates can be made) estimates of amounts to be allocated from Treasury Board central votes.

6. Government-Wide Funds and Public Service Employer Payments

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat also funds payments to, or in respect of, the following:

  • Employer's share of contributions to the Public Service Death Benefit Account;
  • Employer's share of Canada/Québec Pension Plan contributions and Employment Insurance premiums;
  • Employer's share of health, disability, and life insurance premiums and related Québec sales tax;
  • Employer's share of the Québec Parental Insurance Plan premium;
  • Claims and related costs under the Public Service Dental Care Plan and the Pensioners' Dental Services Plan;
  • Provincial payroll taxes in respect of employees who work in Quebec, Ontario, Manitoba and Newfoundland and Labrador. The payroll tax is levied on employers in each of the provinces to help fund their respective health plans; and
  • Returns to certain employees of their share of the Employment Insurance premium reduction.

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Québec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments, agencies and all revolving funds, based on a percentage of salaries and wages incurred.

The following table presents a breakdown by major category:

(in thousands of dollars)
Elements Estimated Results 2014 Planned Results 2015
Expenses:
Employer's contributions to government employee benefit plans (statutory)
3,647,609 3,607,095
Public Service Health Care Plan premiums (Vote 20)
1,104,558 1,056,993
Provincial payroll taxes (Vote 20)
552,292 518,890
Group disability and life insurance premiums (Vote 20)
524,894 576,790
Public Service Pension Plan and Retirement Compensation in respect of actuarial deficits (statutory)
443,000 443,000
Public Service Dental Care Plan claims (Vote 20)
287,572 287,423
Pensioners' Dental Services Plan claims (Vote 20)
160,619 168,871
Québec Parental Insurance Plan premiums (Vote 20)
37,765 36,452
Provincial health insurance plan premiums (Vote 20)
35,645 37,037
Pension and similar payments to former government employees (Vote 20)
4,261 4,481
Operating expenses (Vote 20)
3,963 7,506
Employment Insurance premiums reduction (Vote 20)
2,164 2,182
Total expenses 6,804,342 6,746,720
Recoveries:
Employer's contributions to government employee benefit plans recovered from government departments and agencies (statutory)
3,647,609 3,607,095
Employees' and pensioners' contributions to the Public Service Health Care Plan recovered from government departments and agencies (Vote 20)
187,553 189,078
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)
184,903 169,250
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)
78,524 81,918
Total recoveries 4,098,589 4,047,341
Net expenses 2,705,753 2,699,379


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