Consolidated statement of administrative costs charged to the CPP accounts by ESDC, March 31, 2019
From: Employment and Social Development Canada
Official title: Consolidated statement of administrative costs charged to the Canada Pension Plan accounts by Employment and Social Development Canada, for the period from April 1, 2018 to March 31, 2019
On this page
- Independent auditor’s report
- Consolidated statement of administrative costs charged to the Canada Pension Plan accounts by Employment and Social Development Canada
- Schedule 1: Notes to the Consolidated statement of administrative costs charged to the Canada Pension Plan accounts
- Schedule 2: Administrative costs charged to the Canada Pension Plan accounts by the Deputy Minister’s Office
- Schedule 3: Administrative costs charged to the Canada Pension Plan accounts by the Chief Operating Officer
- Schedule 4: Administrative costs charged to the Canada Pension Plan accounts by the Income Security and Social Development Branch
- Schedule 5: Administrative costs charged to the Canada Pension Plan accounts by the Corporate Secretariat
- Schedule 6: Administrative costs charged to the Canada Pension Plan accounts by the Public Affairs and Stakeholder Relations Branch
- Schedule 7: Administrative costs charged to the Canada Pension Plan accounts by the Human Resources Services Branch
- Schedule 8: Administrative costs charged to the Canada Pension Plan accounts by the Legal Services Branch
- Schedule 9: Administrative costs charged to the Canada Pension Plan accounts by the Internal Audit Services Branch
- Schedule 10: Administrative costs charged to the Canada Pension Plan accounts by the Strategic and Service Policy Branch
- Schedule 11: Administrative costs charged to the Canada Pension Plan accounts by the Transformation and Integrated Service Management Branch and Benefits Delivery Services
- Schedule 12: Administrative costs charged to the Canada Pension Plan accounts by the Citizen Service Branch
- Schedule 13: Administrative csts charged to the Canada Pension Plan accounts by the Integrity Services Branch
- Schedule 14: Administrative costs charged to the Canada Pension Plan accounts by the Social Insurance Register
- Schedule 15: Administrative costs charged to the Canada Pension Plan accounts by the Innovation, Information and Technology Branch
- Schedule 16: Administrative costs charged to the Canada Pension Plan accounts by the Chief Financial Officer Branch
- Schedule 17: Administrative costs charged to the Canada Pension Plan accounts by the Strategic Services Bureau and regional Assistant Deputy Ministers
List of acronyms used in this report
- CPP
- Canada Pension Plan
- ESDC
- Employment and Social Development Canada
- MoU
- Memorandum of Understanding
- NHQ
- National Headquarters
Alternate Formats
Large print, braille, MP3 (audio), e-text and DAISY formats are available on demand by ordering online or calling 1 800 O-Canada (1-800-622-6232). If you use a teletypewriter (TTY), call 1-800-926-9105.
Independent auditor’s report
To the Internal Audit and Enterprise Risk Management Branch of Employment and Social Development Canada
Our opinion
In our opinion, the accompanying consolidated financial statement of administrative costs charged to the Canada Pension Plan accounts (the CPP) by Employment and Social Development Canada (ESDC) and the related schedules (together “the financial information”) for the period from April 1, 2018 to March 31, 2019 is prepared, in all material respects, in accordance with the financial reporting provisions of the 2018 to 2019 Memorandum of Understanding (MoU) between the CPP and ESDC dated March 25, 2019.
What we have audited
The financial information comprises the consolidated financial statement of administrative costs charged to the CPP accounts by ESDC for the period from April 1, 2018 to March 31, 2019 and the related schedules, which include a summary of significant accounting policies in Schedule 1.
Basis for opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial information” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of ESDC in accordance with the ethical requirements that are relevant to our audit of the financial information in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.
Emphasis of matter – basis of accounting and restriction on use
We draw attention to Schedule 1 – Note 1 of the financial information, which describes the basis of accounting. The financial information is 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 should not be used by parties other than ESDC and the CPP.
Our opinion is not modified in respect of this matter.
Responsibilities of management and those charged with governance for the financial information
Management is responsible for the preparation of the financial information in accordance with the financial reporting provisions of the 2018 to 2019 MoU between the CPP and ESDC; this includes determining that the financial reporting framework is acceptable in the circumstances, and for such internal control as management determines is necessary to enable the preparation of financial information that is free from material misstatement, whether due to fraud or error.
In preparing the financial information, management is responsible for assessing ESDC’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing ESDC’s financial reporting process.
Auditor’s responsibilities for the audit of the financial information
Our objectives are to obtain reasonable assurance about whether the financial information as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial information.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- identify and assess the risks of material misstatement of the financial information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- obtain an understanding of internal controls relevant to the audit 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 controls.
- evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- conclude on the appropriateness of management’s use of the going concern basis of accounting and,
- based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on ESDC’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause ESDC to cease to continue as a going concern.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PricewaterhouseCoopers LLP
Chartered Professional Accountants, Licensed Public Accountants
Ottawa, Ontario August 9, 2019
Consolidated statement of administrative costs charged to the Canada Pension Plan account by Employment and Social Development Canada
| Service area as per the Memorandum of Understanding | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Deputy Minister’s Office (Schedule 2) | 499 | 451 |
| Chief Operating Officer (Schedule 3) | 235 | 224 |
| Income Security and Social Development Branch (Schedule 4) | 12,714 | 14,262 |
| Corporate Secretariat (Schedule 5) | 1,857 | 1,857 |
| Public Affairs and Stakeholder Relations Branch (Schedule 6) | 3,105 | 3,096 |
| Human Resources Services Branch (Schedule 7) | 13,478 | 12,487 |
| Legal Services Branch (Schedule 8) | 3,501 | 3,924 |
| Internal Audit Services Branch (Schedule 9) | 844 | 833 |
| Strategic and Service Policy Branch (Schedule 10) | 3,393 | 4,684 |
| Transformation and Integrated Service Management Branch and Benefits Delivery Services (Schedule 11) | 212,970 | 204,958 |
| Citizen Service Branch (Schedule 12) | 21,698 | 22,346 |
| Integrity Services Branch (Schedule 13) | 8,310 | 7,840 |
| Social Insurance Register (Schedule 14) | 4,666 | 4,723 |
| Innovation, Information and Technology Branch (Schedule 15) | 62,507 | 59,479 |
| Chief Financial Officer Branch (Schedule 16) | 44,447 | 45,250 |
| Strategic Services Bureau and Regional Assistant Deputy Ministers (Schedule 17) | 3,097 | 3,419 |
| Canada School of Public Service | 515 | 515 |
| Provision of pay administration services | 315 | 319 |
| Back office transformation | 271 | 353 |
| Total administrative costs charged to the Canada Pension Plan accounts | 398,422 | 391,020 |
The notes included in Schedule 1 form an integral part of the consolidated statement of administrative costs charged to the Canada Pension Plan accounts
Schedule 1 - Notes to the consolidated statement of administrative costs charged to the Canada Pension Plan accounts
Note 1: Introduction
Under the CPP legislation, the Minister of ESDC has the responsibility for the administration of Parts II and III (except for some sections of Part III), that pertains to the general administration of the CPP. The CPP is administered by ESDC, with support from the Income Security and Social Development Branch, the 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, the CPP Investment Board, and the Administrative Tribunals Support Service of Canada.
The 2018 to 2019 MoU between the CPP and ESDC was signed on March 25, 2019. This 2018 to 2019 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 Accounts, in accordance with the costing principles approved by Treasury Board in January 1988.
The Consolidated Statement of Administrative Costs Charged to the CPP Accounts focuses on authority for payments in a fiscal year and is prepared for on a near-cash basis.
Note 2: Canada Pension Plan enhancement
The 2018 to 2019 consolidated statement of administrative costs charged to the CPP Accounts is reflective of the total amount invoiced to the CPP Accounts by ESDC, and includes $4,757,774 in project costs (excluding Contributions to Employee Benefit Plans and Public Service Insurance) associated with the implementation of CPP enhancement.
Note 3: Comparative information
Comparative figures have been reclassified to conform to the current year's presentation.
Note 4: Contingencies
Due to the nature of its operations, ESDC as a department within the Government of Canada is sometimes subject to grievances filed by its employees. A grievance has been raised that will result in a change of classification, which may impact charges relating to the CPP Accounts for future periods beyond the period ended March 31, 2019. The resolution of this grievance could have a material effect on the expenses included in the Consolidated Statement of Administrative Costs Charged to the CPP Accounts, however the financial impact is not determinable at this time.
Schedule 2 - Administrative costs charged to the Canada Pension Plan accounts by the Deputy Minister’s Office
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Deputy Minister’s Office | 409 | 368 |
| Contributions to Employee Benefit Plans | 56 | 50 |
| Public Service Insurance | 34 | 33 |
| Total | 499 | 451 |
Schedule 3 - Administrative costs charged to the Canada Pension Plan accounts by the Chief Operating Officer
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Chief Operating Officer | 193 | 184 |
| Contributions to Employee Benefit Plans | 26 | 24 |
| Public Service Insurance | 16 | 16 |
| Total | 235 | 224 |
Schedule 4 - Administrative costs charged to the Canada Pension Plan accounts by the Income Security and Social Development Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Income Security and Social Development Branch | 10,464 | 11,676 |
| Contributions to Employee Benefit Plans | 1,398 | 1,556 |
| Public Service Insurance | 852 | 1,030 |
| Total | 12,714 | 14,262 |
Schedule 5 - Administrative costs charged to the Canada Pension Plan accounts by the Corporate Secretariat
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Corporate Secretariat | 1,529 | 1,520 |
| Contributions to Employee Benefit Plans | 204 | 203 |
| Public Service Insurance | 124 | 134 |
| Total | 1,857 | 1,857 |
Schedule 6 - Administrative costs charged to the Canada Pension Plan accounts by the Public Affairs and Stakeholder Relations Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Public Affairs and Stakeholder Relations Branch | 2,575 | 2,556 |
| Contributions to Employee Benefit Plans | 329 | 325 |
| Public Service Insurance | 201 | 215 |
| Total | 3,105 | 3,096 |
Schedule 7 - Administrative costs charged to the Canada Pension Plan accounts by the Human Resources Services Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Human Resources Services Branch | 11,362 | 10,478 |
| Contributions to Employee Benefit Plans | 1,315 | 1,209 |
| Public Service Insurance | 801 | 800 |
| Total | 13,478 | 12,487 |
Schedule 8 - Administrative costs charged to the Canada Pension Plan accounts by the Legal Services Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Legal Services Branch | 3,272 | 3,665 |
| Contributions to Employee Benefit Plans | 142 | 156 |
| Public Service Insurance | 87 | 103 |
| Total | 3,501 | 3,924 |
Schedule 9 - Administrative costs charged to the Canada Pension Plan accounts by the Internal Audit Services Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Internal Audit Services Branch | 714 | 709 |
| Contributions to Employee Benefit Plans | 81 | 75 |
| Public Service Insurance | 49 | 49 |
| Total | 844 | 833 |
Schedule 10 - Administrative costs charged to the Canada Pension Plan accounts by the Strategic and Service Policy Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Internal Audit Services Branch | 714 | 709 |
| Contributions to Employee Benefit Plans | 81 | 75 |
| Public Service Insurance | 49 | 49 |
| Total | 844 | 833 |
Schedule 11 - Administrative costs charged to the Canada Pension Plan accounts by the Transformation and Integrated Service Management Branch and Benefits Delivery Services
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Benefits Delivery Services — National Headquarters (NHQ) | 52,494 | 43,288 |
| Benefits Delivery Services — Regions | 112,559 | 114,116 |
| Call Centers — NHQ | 1,719 | 1,530 |
| Call Centers — Regions | 12,196 | 11,397 |
| Contributions to Employee Benefit Plans | 21,128 | 20,836 |
| Public Service Insurance | 12,874 | 13,791 |
| Total | 212,970 | 204,958 |
Schedule 12 - Administrative costs charged to the Canada Pension Plan accounts by the Citizen Service Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Citizen Service Branch — NHQ | 1,524 | 1,486 |
| Citizen Service Branch — Regions | 16,441 | 17,015 |
| Contributions to Employee Benefit Plans | 2,320 | 2,314 |
| Public Service Insurance | 1,413 | 1,531 |
| Total | 21,698 | 22,346 |
Schedule 13 - Administrative costs charged to the Canada Pension Plan accounts by the Integrity Services Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Integrity Services Branch — NHQ | 2,111 | 1,162 |
| Integrity Services Branch — Regions | 4,910 | 5,383 |
| Contributions to Employee Benefit Plans | 801 | 779 |
| Public Service Insurance | 488 | 516 |
| Total | 8,310 | 7,840 |
Schedule 14 - Administrative costs charged to the Canada Pension Plan accounts by the Social Insurance Register
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Social Insurance Register | 5,442 | 5,470 |
| Contributions to Employee Benefit Plans | 554 | 561 |
| Public Service Insurance | 337 | 371 |
| Total administrative costs | 6,333 | 6,402 |
| Less: funding from Treasury Board | (1,667) | (1,679) |
| Total | 4,666 | 4,723 |
Schedule 15 - Administrative costs charged to the Canada Pension Plan accounts by the Innovation, Information and Technology Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Innovation, Information and Technology Branch - regular operating | 35,836 | 33,060 |
| Shared Services Canada | 21,683 | 21,588 |
| Contributions to Employee Benefit Plans | 3,099 | 2,907 |
| Public Service Insurance | 1,889 | 1,924 |
| Total | 62,507 | 59,479 |
Schedule 16 - Administrative costs charged to the Canada Pension Plan accounts by the Chief Financial Officer Branch
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Chief Financial Officer Branch - regular operating | 12,202 | 11,386 |
| National Accommodation Plan | 30,003 | 31,672 |
| Contributions to Employee Benefit Plans | 1,393 | 1,319 |
| Public Service Insurance | 849 | 873 |
| Total | 44,447 | 45,250 |
Schedule 17 - Administrative costs charged to the Canada Pension Plan accounts by the Strategic Services Bureau and Regional Assistant Deputy Ministers
| Cost description | 2019 cost in thousands of dollars | 2018 cost in thousands of dollars |
|---|---|---|
| Strategic Services Bureau and Regional Assistant Deputy Ministers | 2,556 | 2,829 |
| Contributions to Employee Benefit Plans | 336 | 355 |
| Public Service Insurance | 205 | 235 |
| Total | 3,097 | 3,419 |
Page details
- Date modified: