Consolidated statement of administrative costs charged to the CPP account by ESDC, March 31, 2016
On this page
- Independent Auditor’s report
- Schedule 1: Notes to consolidated statement of administrative costs charged to the Canada Pension Plan account
- Schedule 2: Administrative costs charged to the Canada Pension Plan account by Deputy Minister’s Office
- Schedule 3: Administrative costs charged to the Canada Pension Plan account by Chief Operating Officer
- Schedule 4: Administrative costs charged to the Canada Pension Plan account by Income Security and Social Development Branch
- Schedule 5: Administrative costs charged to the Canada Pension Plan account by Social Security Tribunal
- Schedule 6: Administrative costs charged to the Canada Pension Plan account by Corporate Secretariat
- Schedule 7: Administrative costs charged to the Canada Pension Plan account by Public Affairs and Stakeholder Relations Branch
- Schedule 8: Administrative costs charged to the Canada Pension Plan account by Human Resources Services Branch
- Schedule 9: Administrative costs charged to the Canada Pension Plan account by ESDC Legal Services Branch
- Schedule 10: Administrative costs charged to the Canada Pension Plan account by Internal Audit Services Branch
- Schedule 11: Administrative costs charged to the Canada Pension Plan account by Strategic and Service Policy Branch
- Schedule 12: Administrative costs charged to the Canada Pension Plan account by Processing and Payment Services Branch
- Schedule 13: Administrative costs charged to the Canada Pension Plan account by Citizen Service Branch
- Schedule 14: Administrative costs charged to the Canada Pension Plan account by Integrity Services Branch
- Schedule 15: Administrative costs charged to the Canada Pension Plan account by Social Insurance Registry
- Schedule 16: Administrative costs charged to the Canada Pension Plan account by Innovation, Information and Technology Branch
- Schedule 17: Administrative costs charged to the Canada Pension Plan account by Chief Financial Officer Branch
- Schedule 18: Administrative costs charged to the Canada Pension Plan account by Strategic Services Branches and Regional Assistant Deputy Minister
- Schedule 19: Administrative Costs Charged to the Canada Pension Plan Account by Enabling Services Renewal Program
- Schedule 20: Administrative Costs Charged to the Canada Pension Plan Account for Provision of Pay Administration Services
- Schedule 21: Administrative Costs Charged to the Canada Pension Plan Account for Back Office Transformation
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Independent Auditor’s report
To the Internal Audit Services Branch of Employment and Social Development Canada
We have audited the accompanying Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan (CPP) Account by Employment and Social Development Canada (ESDC) for the year ended March 31, 2016 and the related schedules (together “the financial information”). The financial information has been prepared by management of ESDC based on the financial reporting provisions established in the 2015-2016 Memorandum of Understanding between the CPP and ESDC dated March 30, 2016 (the MoU).
Management’s responsibility for the financial information
Management of ESDC is responsible for the preparation of the financial information in accordance with the financial reporting provisions of the MoU, and for such internal control as management determines is necessary to enable the preparation of the financial information that is free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial information based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial information is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial information. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial information, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to ESDC’s preparation of the financial information in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of ESDC’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial information.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial information for the year ended March 31, 2016 is prepared, in all material respects, in accordance with the financial reporting provisions of the MoU.
Basis of accounting and restriction on use
Without modifying our opinion, we draw attention to Schedule 1 - Note 1 of the financial information, which describes the basis of accounting. The financial information has been prepared to assist ESDC to comply with the financial reporting requirements of the MoU between ESDC and the CPP. As a result, the financial information may not be suitable for another purpose. Our report is intended solely for ESDC and the CPP and should not be used by parties other than ESDC and the CPP.
(Chartered professional accountants, licensed public accountants)
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Deputy Minister’s Office (Schedule 2) | 285 | 293 |
| Chief Operating Officer (Schedule 3) | 223 | 214 |
| Income Security and Social Development Branch (Schedule 4) | 14,407 | 14,418 |
| Social Security Tribunal (Schedules 1 and 5) | 0 | 12,877 |
| Corporate Secretariat (Schedule 6) | 1,628 | 1,699 |
| Public Affairs and Stakeholder Relations Branch (Schedule 7) | 2,712 | 3,149 |
| Human Resources Services Branch (Schedule 8) | 10,397 | 10,811 |
| Legal Services Branch (Schedule 9) | 4,539 | 4,777 |
| Internal Audit Services Branch (Schedule 10) | 635 | 683 |
| Strategic and Service Policy Branch (Schedule 11) | 4,352 | 3,168 |
| Processing and Payment Services Branch (Schedule 12) | 172,598 | 173,666 |
| Citizen Service Branch (Schedule 13) | 16,287 | 12,894 |
| Integrity Services Branch (Schedule 14) | 6,935 | 7,447 |
| Social Insurance Registry (Schedule 15) | 5,357 | 5,065 |
| Innovation, Information and Technology Branch (Schedule 16) | 56,622 | 57,154 |
| Chief Financial Officer Branch (Schedule 17) | 38,830 | 37,885 |
| Strategic Services Branches and Regional Assistant Deputy Ministers (Schedule 18) | 2,528 | 2,967 |
| Enabling Services Renewal Program (Schedule 19) | - | 2,572 |
| Provision of pay administration services (Schedule 20) | 163 | - |
| Back office transformation (Schedule 21) | 324 | - |
| Total administrative costs to the Canada Pension Plan account | 338,822 | 351,739 |
Schedule 1: Notes to consolidated statement of administrative costs charged to the Canada Pension Plan account
1. Introduction
Under the Canada Pension Plan (CPP) Legislation, the Minister of Employment and Social Development Canada (ESDC) has the responsibility for the administration of Parts II and III (except for some sections of Part III), which concern the general administration of the CPP. The CPP is administered by ESDC, with support from the Income Security and Social Development Branch (ISSDB), Department of Finance, the Canada Revenue Agency, Public Service and Procurement Canada, the Office of the Superintendent of Financial Institutions, the Royal Canadian Mounted Police and the CPP Investment Board.
The 2015-2016 Memorandum of Understanding (2015-2016 MoU) between the CPP and ESDC was approved in March 2016. This 2015-2016 MOU is comprised of two parts: the first part (Part A) sets out the framework and basic principles regarding the services to be provided to the CPP. The second part (Part B) specifies the cost allocation methodologies used by ESDC to calculate the charges for its services to the CPP, in accordance with the costing principles approved by Treasury Board in January 1988.
The Consolidated Statement of Administrative Costs Charged to the CPP focuses on authority for payments in a fiscal year and is prepared for on a near-cash basis.
2. Social Security Tribunal
The Social Security Tribunal (SST) is an independent administrative tribunal that provides independent appeal processes for Employment Insurance (EI), the CPP and Old Age Security (OAS) decisions. Following passage of Bill C-51, the Economic Action Plan 2014 Act, effective November 1st, 2014 the SST is now part of the Administrative Tribunals Support Service of Canada (ATSSC) under the Department of Justice portfolio. As of November 2014, CPP-related expenditures for tribunal services (SST) are being administered by ATSSC through its vote-netted revenue authority.
As a transitional measure, a Memorandum of Understanding between ATSSC and ESDC was signed on October 31, 2014, and established that ESDC would continue to provide the necessary internal (corporate) support services to the SST and its Secretariat operations on ATSSC’s behalf.
Subsequently, a new Memorandum of Understanding between ESDC, CPP and ATSSC was created to outline the relationship, roles and responsibilities, methodology for recovering costs, and reporting requirements, with respect to the provision of services by ATSSC to the CPP as administered by ESDC. The 2015-17 financial MoU between ESDC, the CPP and ATSSC was signed in February 2016 and covers the period from April 1, 2015 to March 31, 2017.
The SST CPP-related expenditures for the period from April 1, 2015 to March 31, 2016 are therefore included in the Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account by ATSSC for the year ended March 31, 2016.
3. Comparative information
Comparative figures have been reclassified to conform to the current year's presentation.
Schedule 2: Administrative costs charged to the Canada Pension Plan account by Deputy Minister’s Office
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Deputy Minister’s Office | 230 | 237 |
| Contributions to employee benefit plan | 35 | 36 |
| Management insurance plan | 20 | 20 |
| Total | 285 | 293 |
Schedule 3: Administrative costs charged to the Canada Pension Plan account by Chief Operating Officer
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Chief Operating Officer | 180 | 174 |
| Contributions to employee benefit plan | 28 | 26 |
| Management insurance plan | 15 | 14 |
| Total | 223 | 214 |
Schedule 4: Administrative costs charged to the Canada Pension Plan account by Income Security and Social Development Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Income Security and Social Development Branch | 11,753 | 11,680 |
| Contributions to employee benefit plan | 1,709 | 1,789 |
| Management insurance plan | 945 | 949 |
| Total | 14,407 | 14,418 |
Schedule 5: Administrative costs charged to the Canada Pension Plan account by Social Security Tribunal
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Social Security Tribunal | - | 10,667 |
| Contributions to employee benefit plan | - | 1,444 |
| Management insurance plan | - | 766 |
| Total | - | 12,877 |
Schedule 6: Administrative costs charged to the Canada Pension Plan account by Corporate Secretariat
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| ESDC Corporate Secretariat | 1,321 | 1,392 |
| Contributions to employee benefit plan | 198 | 201 |
| Management insurance plan | 109 | 106 |
| Total | 1,628 | 1,699 |
Schedule 7: Administrative costs charged to the Canada Pension Plan account by Public Affairs and Stakeholder Relations Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Public Affairs and Stakeholder Relations Branch | 2,224 | 2,587 |
| Contributions to employee benefit plan | 314 | 367 |
| Management insurance plan | 174 | 195 |
| Total | 2,712 | 3,149 |
Schedule 8: Administrative costs charged to the Canada Pension Plan account by Human Resources Services Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Human Resources Services Branch | 8,611 | 9,017 |
| Contributions to employee benefit plan | 1,150 | 1,172 |
| Management insurance plan | 636 | 622 |
| Total | 10,397 | 10,811 |
Schedule 9: Administrative costs charged to the Canada Pension Plan account by ESDC Legal Services Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| ESDC Legal Services Branch | 4,157 | 4,415 |
| Contributions to employee benefit plan | 246 | 236 |
| Management insurance plan | 136 | 126 |
| Total | 4,539 | 4,777 |
Schedule 10: Administrative costs charged to the Canada Pension Plan account by Internal Audit Services Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Internal Audit Services Branch | 536 | 580 |
| Contributions to employee benefit plan | 64 | 67 |
| Management insurance plan | 35 | 36 |
| Total | 635 | 683 |
Schedule 11: Administrative costs charged to the Canada Pension Plan account by Strategic and Service Policy Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Strategic and Service Policy Branch | 4,012 | 2,858 |
| Contributions to employee benefit plan | 219 | 203 |
| Management insurance plan | 121 | 107 |
| Total | 4,352 | 3,168 |
Schedule 12: Administrative costs charged to the Canada Pension Plan account by Processing and Payment Services Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Processing and payment - Regions | 100,162 | 88,941 |
| Processing and payment – NHQ | 29,747 | 41,443 |
| Call centers (Regions and NHQ) | 12,042 | 13,143 |
| Contributions to employee benefit plans | 19,733 | 19,685 |
| Management insurance plan | 10,914 | 10,454 |
| Total | 172,598 | 173,666 |
Schedule 13: Administrative costs charged to the Canada Pension Plan account by Citizen Service Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Citizen Services – Regions | 11,697 | 9,391 |
| Citizen Services – NHQ | 1,547 | 1,114 |
| Contributions to employee benefit plans | 1,959 | 1,560 |
| Management insurance plan | 1,084 | 829 |
| Total administrative costs | 16,287 | 12,894 |
Schedule 14: Administrative costs charged to the Canada Pension Plan account by Integrity Services Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2015 | 2014 | |
| Integrity Services Branch | 5,701 | 6,123 |
| Contributions to employee benefit plans | 795 | 865 |
| Management insurance plan | 439 | 459 |
| Total | 6,935 | 7,447 |
Schedule 15: Administrative costs charged to the Canada Pension Plan account by Social Insurance Registry
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Personnel costs | 4,361 | 4,166 |
| Contributions to employee benefit plans | 733 | 651 |
| Central government services | 601 | 667 |
| Transportation and communication | 420 | 415 |
| Professional and special services | 400 | 327 |
| Management insurance plan | 379 | 346 |
| Indirect expenses | 94 | 126 |
| Travel | 16 | 1 |
| Training and educational services | 14 | 2 |
| Construction or acquisition of machinery and equipment | 3 | 2 |
| Utilities, material and supplies | 3 | 2 |
| Information | 1 | - |
| Other services | 1 | - |
| Rental, repairs and maintenance | 1 | 1 |
| Total administrative costs | 7,027 | 6,706 |
| Less: Funding from Treasury Board | (1,670) | (1,641) |
| Total | 5,357 | 5,065 |
Schedule 16: Administrative costs charged to the Canada Pension Plan account by Innovation, Information and Technology Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Innovation, Information and Technology Branch | 51,689 | 51,994 |
| Contributions to employee benefit plans | 3,176 | 3,370 |
| Management insurance plan | 1,757 | 1,790 |
| Total | 56,622 | 57,154 |
Schedule 17: Administrative costs charged to the Canada Pension Plan account by Chief Financial Officer Branch
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Regular operating | 9,969 | 9,253 |
| National accommodation plan | 26,956 | 26,770 |
| Contributions to employee benefit plans | 1,227 | 1,216 |
| Management insurance plan | 678 | 646 |
| Total | 38,830 | 37,885 |
Schedule 18: Administrative costs charged to the Canada Pension Plan account by Strategic Services Branches and Regional Assistant Deputy Minister
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Strategic Services Branches and Regional Assistant Deputy Minister | 2,075 | 2,452 |
| Contributions to employee benefit plans | 292 | 336 |
| Management insurance plan | 161 | 179 |
| Total | 2,528 | 2,967 |
Schedule 19: Administrative costs charged to the Canada Pension Plan Account by Enabling Services Renewal Program
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Enabling Services Renewal Program | - | 2,341 |
| Contributions to employee benefit plans | - | 151 |
| Management insurance plan | - | 80 |
| Total | - | 2,572 |
Schedule 20: Administrative costs charged to the Canada Pension Plan account for provision of pay administration services
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Provision of pay administration services | 163 | - |
| Total | 163 | - |
Schedule 21: Administrative costs charged to the Canada Pension Plan account for back office transformation
| Cost in thousands of dollars | ||
|---|---|---|
| 2016 | 2015 | |
| Back office transformation | 324 | - |
| Total | 324 | - |
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