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

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

Request other formats online  or call 1 800 O-Canada (1-800-622-6232). If you use a teletypewriter (TTY), call 1-800-926-9105. Large print, braille, audio cassette, audio CD, e-text diskette, e-text CD and DAISY are available on demand.

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:

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
Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: