Consolidated Statement of Administrative Costs Charged to the CPP Account by ESDC, March 31, 2017
From: Employment and Social Development Canada
Official title: Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account by Employment and Social Development Canada for the period from April 1, 2016 to March 31, 2017
On this page
- Independent auditor’s report
- Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account by Employment and Social Development Canada for the period from April 1, 2016 to March 31, 2017
- Schedule 1: Notes to the 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 Corporate Secretariat
- Schedule 6: Administrative costs charged to the Canada Pension Plan account by Public Affairs and Stakeholder Relations Branch
- Schedule 7: Administrative costs charged to the Canada Pension Plan account by Human Resources Services Branch
- Schedule 8: Administrative costs charged to the Canada Pension Plan account by Legal Services Branch
- Schedule 9: Administrative costs charged to the Canada Pension Plan account by Internal Audit Services Branch
- Schedule 10: Administrative costs charged to the Canada Pension Plan account by Strategic and Service Policy Branch
- Schedule 11: Administrative costs charged to the Canada Pension Plan account by Transformation and Integrated Service Management Branch and Benefits Delivery Services
- Schedule 12: Administrative costs charged to the Canada Pension Plan account by Citizen Service Branch
- Schedule 13: Administrative costs charged to the Canada Pension Plan account by Integrity Services Branch
- Schedule 14: Administrative costs charged to the Canada Pension Plan account by Social Insurance Register
- Schedule 15: Administrative costs charged to the Canada Pension Plan account by Innovation, Information and Technology Branch
- Schedule 16: Administrative costs charged to the Canada Pension Plan account by Chief Financial Officer Branch
- Schedule 17: Administrative costs charged to the Canada Pension Plan account by Strategic Services Bureau and Regional Assistant Deputy Minister
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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, 2017 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 fiscal year 2016 to 2017 Memorandum of Understanding between the CPP and ESDC dated March 31, 2017 and the June 2017 addendum (together, “the Memorandum of Understanding”).
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 Memorandum of Understanding, 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, 2017 is prepared, in all material respects, in accordance with the financial reporting provisions of the Memorandum of Understanding.
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 Memorandum of Understanding 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 should not be used by parties other than ESDC and the CPP.
Chartered professional accountants, licensed public accountants
Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account by Employment and Social Development Canada for the period from April 1, 2016 to March 31, 2017
Service area as per Memorandum of Understanding | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Deputy Minister’s Office (Schedule 2) | 275 | 285 |
Chief Operating Officer (Schedule 3) | 204 | 223 |
Income Security and Social Development Branch (Schedule 4) | 13,810 | 14,407 |
Corporate Secretariat (Schedule 5) | 1,610 | 1,628 |
Public Affairs and Stakeholder Relations Branch (Schedule 6) | 2,510 | 2,712 |
Human Resources Services Branch (Schedule 7) | 8,615 | 10,397 |
Legal Services Branch (Schedule 8) | 3,946 | 4,539 |
Internal Audit Services Branch (Schedule 9) | 645 | 635 |
Strategic and Service Policy Branch (Schedule 10) | 3,791 | 4,352 |
Transformation and Integrated Service Management Branch and Benefits Delivery Services (Schedule 1 and 11) | 185,728 | 172,598 |
Citizen Service Branch (Schedule 12) | 20,565 | 16,287 |
Integrity Services Branch (Schedule 13) | 6,371 | 6,935 |
Social Insurance Register (Schedule 14) | 5,306 | 5,357 |
Innovation, Information and Technology Branch (Schedule 15) | 54,915 | 56,622 |
Chief Financial Officer Branch (Schedule 16) | 39,159 | 38,830 |
Strategic Services Bureau and Regional Assistant Deputy Ministers (Schedule 17) | 2,581 | 2,528 |
Canada School of Public Service | 515 | 0 |
Provision of pay administration services | 319 | 163 |
Back office transformation | 353 | 324 |
Total administrative costs charged to Canada Pension Plan account | 351,218 | 338,822 |
Schedule 1: Notes to Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account
Note 1: Introduction
Under the Canada Pension Plan (CPP) Legislation, the Minister of Employment and Social Development Canada (ESDC or the “Department”) 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 Services and Procurement Canada, the Office of the Superintendent of Financial Institutions, the Royal Canadian Mounted Police and the CPP Investment Board.
The fiscal year 2016 to 2017 Memorandum of Understanding between the CPP and ESDC was approved on March 31, 2017 and was revised in June 2017 by way of an addendum. This fiscal year 2016 to 2017 Memorandum of Understanding is comprised of 2 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.
Note 2: Comparative information
Expenditures for the period from April 1, 2015 to March 31, 2016 of the Processing and Payments Services Branch are included in the Consolidated Statement of Administrative Costs Charged to the Canada Pension Plan Account by ESDC under the Transformation and Integrated Service Management Branch and Benefits Delivery Services line item as 2016 comparative financial information.
During the fiscal year 2016 to 2017 period, ESDC expanded the mandate of the Processing and Payments Services Branch and it is now known as the Transformation and Integrated Service Management Branch (TISMB). TISMB helps ESDC drive the Service Strategy and a multi-year action plan, provides oversight over the Department’s transformation work and design, and leads key transformation initiatives. TISMB is also responsible for ensuring continuing and consistent delivery of core benefits to Canadians through the newly created Benefits Delivery Services group.
Schedule 2: Administrative costs charged to the Canada Pension Plan account by Deputy Minister’s Office
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Deputy Minister’s Office | 223 | 230 |
Contributions to employee benefit plans | 32 | 35 |
Management insurance plan | 20 | 20 |
Total | 275 | 285 |
Schedule 3: Administrative costs charged to the Canada Pension Plan account by Chief Operating Officer
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Chief Operating Officer | 166 | 180 |
Contributions to employee benefit plans | 23 | 28 |
Management insurance plan | 15 | 15 |
Total | 204 | 223 |
Schedule 4: Administrative costs charged to the Canada Pension Plan account by Income Security and Social Development Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Income Security and Social Development Branch | 11,226 | 11,753 |
Contributions to employee benefit plans | 1,579 | 1,709 |
Management insurance plan | 1,005 | 945 |
Total | 13,810 | 14,407 |
Schedule 5: Administrative costs charged to the Canada Pension Plan account by Corporate Secretariat
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
ESDC Corporate Secretariat | 1,319 | 1,321 |
Contributions to employee benefit plans | 178 | 198 |
Management insurance plan | 113 | 109 |
Total | 1,610 | 1,628 |
Schedule 6: Administrative costs charged to the Canada Pension Plan account by Public Affairs and Stakeholder Relations Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars) |
---|---|---|
Public Affairs and Stakeholder Relations Branch | 2,057 | 2,224 |
Contributions to employee benefit plans | 277 | 314 |
Management insurance plan | 176 | 174 |
Total | 2,510 | 2,712 |
Schedule 7: Administrative costs charged to the Canada Pension Plan account by Human Resources Services Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Human Resources Services Branch | 7,167 | 8,611 |
Contributions to employee benefit plans | 885 | 1,150 |
Management insurance plan 2014 | 563 | 636 |
Total | 8,615 | 10,397 |
Schedule 8: Administrative costs charged to the Canada Pension Plan account by ESDC Legal Services Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
ESDC Legal Services Branch | 3,674 | 4,157 |
Contributions to employee benefit plans | 166 | 246 |
Management insurance plan | 106 | 136 |
Total | 3,946 | 4,539 |
Schedule 9: Administrative costs charged to the Canada Pension Plan account by Internal Audit Services Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Internal Audit Services Branch | 545 | 536 |
Contributions to employee benefit plans | 61 | 64 |
Management insurance plan | 39 | 35 |
Total | 645 | 635 |
Schedule 10: Administrative costs charged to the Canada Pension Plan account by Strategic and Service Policy Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Strategic and Service Policy Branch | 3,504 | 4,012 |
Contributions to employee benefit plans | 175 | 219 |
Management insurance plan | 112 | 121 |
Total | 3,791 | 4,352 |
Schedule 11: Administrative costs charged to the Canada Pension Plan account by Transformation and Integrated Service Management Branch and Benefits Delivery Services
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Processing and payment (Regions) | 99,533 | 100,162 |
Processing and payment (National Headquarters) | 41,794 | 29,747 |
Call Centers (Regions and National Headquarters) | 13,371 | 12,042 |
Contributions to employee benefit plans | 18,966 | 19,733 |
Management insurance plan | 12,064 | 10,914 |
Total | 185,728 | 172,598 |
Schedule 12: Administrative costs charged to the Canada Pension Plan account by Citizen Service Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Citizen Services (Regions) | 15,278 | 11,697 |
Citizen Services (National Headquarters) | 1,595 | 1,547 |
Contributions to employee benefit plans | 2,257 | 1,959 |
Management insurance plan | 1,435 | 1,084 |
Total | 20,565 | 16,287 |
Schedule 13: Administrative costs charged to the Canada Pension Plan account by Integrity Services Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Integrity Services Branch | 5,320 | 5,701 |
Contributions to employee benefit plans | 642 | 795 |
Management insurance plan | 409 | 439 |
Total | 6,371 | 6,935 |
Schedule 14: Administrative costs charged to the Canada Pension Plan account by Social Insurance Register
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Personnel cost | 4,298 | 4,361 |
Contributions to employee benefit plans | 750 | 733 |
Central government services | 575 | 601 |
Transportation and communication | 423 | 420 |
Professional and special services | 407 | 400 |
Management insurance plan | 389 | 379 |
Indirect expenses | 86 | 94 |
Other services | 21 | 1 |
Travel | 18 | 16 |
Rental, repairs and maintenance | 6 | 1 |
Construction or acquisition of machinery and equipment | 6 | 3 |
Utilities, material and supplies | 3 | 3 |
Training and educational services | 2 | 14 |
Information | 1 | 1 |
Total administrative costs | 6,985 | 7,027 |
Less: Funding from Treasury Board | (1,679) | (1,670) |
Total | 5,306 | 5,357 |
Schedule 15: Administrative costs charged to the Canada Pension Plan account by Innovation, Information and Technology Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Innovation, Information and Technology Branch | 50,420 | 51,689 |
Contributions to employee benefit plans | 2,747 | 3,176 |
Management insurance plan | 1,748 | 1,757 |
Total | 54,915 | 56,622 |
Schedule 16: Administrative costs charged to the Canada Pension Plan account by Chief Financial Officer Branch
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Regular operating | 9,360 | 9,969 |
National accommodation plan | 28,046 | 26,956 |
Contributions to employee benefit plans | 1,071 | 1,227 |
Management insurance plan | 682 | 678 |
Total | 39,159 | 38,830 |
Schedule 17: Administrative costs charged to the Canada Pension Plan account by Strategic Services Bureau and Regional Assistant Deputy Ministers
Cost description | 2017 cost in thousands of dollars | 2016 cost in thousands of dollars |
---|---|---|
Strategic Services Bureau and Regional Assistant Deputy Ministers | 2,123 | 2,075 |
Contributions to employee benefit plans | 280 | 292 |
Management insurance plan | 178 | 161 |
Total | 2,581 | 2,528 |
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