Future-Oriented Statement of Operations - Treasury Board of Canada Secretariat 2017–18 Departmental Plan

1. Departmental Core Responsibilities

In 2017–18, the Treasury Board of Canada Secretariat (the Secretariat) transitioned from a reporting framework comprising Strategic Outcomes and a Program Alignment Architecture to a Departmental Results Framework comprising Core Responsibilities and Departmental Results (see note 7). For more information on the Secretariat’s Core Responsibilities, see the “Planned results” section of the Departmental Plan

2. Methodology and significant assumptions

The Future‑Oriented Statement of Operations has been prepared on the basis of government priorities and departmental plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2016–17 and the planned results for fiscal year 2017–18 are based on the activities and initiatives included in the forecast spending and planned spending amounts that are presented in the Departmental Plan, expressed in terms of accrual accounting.

The main assumptions underlying the forecasts are as follows:

• The Secretariat’s mandated activities will remain substantially the same as in the previous year
• 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

These assumptions are made as at February 1, 2017.

3. Variations and changes to the forecast financial information

Forecasts have been made for 2016–17 and 2017–18. Actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, the Secretariat has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on past experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the departmental financial statements include the following:

• the timing and amount of acquisitions and the disposal of tangible capital assets that may affect gains or losses and the amortization expense
• the implementation of new collective agreements
• further changes to the operating budget through funding of additional new initiatives or technical adjustments later in the year

Once the Departmental Plan is tabled in Parliament, the Secretariat will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Secretariat’s Departmental Results Report.

4. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using Government of Canada accounting policies 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:

5. Parliamentary authorities

The Secretariat receives most of its funding through expenditure authorities provided by Parliament. Financial reporting of authorities provided to the Secretariat differs from financial reporting according to generally accepted accounting principles because authorities are mainly 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 cost of operations for the year on an expenditure basis than on an accrual accounting basis. The differences are reconciled in the following tables: 

6. Employer Expenses

Total expenses reported under the “Employer” Core Responsibility comprise public service employer payments on behalf of other federal organizations and departmental expenses in support of the Treasury Board in its role as the employer of the core public administration.

Public service employer payments account for approximately 90% of the Secretariat’s total expenses and include the following:

• the employer’s share of contributions to the Public Service Pension Plan and Retirement Compensation Arrangement
• the employer’s share of contributions to the Public Service Death Benefit Account
• the employer’s share of contributions to the Canada Pension Plan and Québec Pension Plan and Employment Insurance premiums
• the employer’s share of disability and life insurance premiums and related Québec sales tax;
• the employer’s share of the Québec Parental Insurance Plan premium;
• claims and related costs under the Public Service Health Care Plan, the Public Service Dental Care Plan and the Pensioners’ Dental Services Plan
• provincial payroll taxes for employees who work in Quebec, Ontario, Manitoba, and Newfoundland and Labrador. The payroll tax is levied on employers in these provinces to help fund the respective health plans
• 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 Pension Plan and 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.

Departmental expenses under the “Employer” Core Responsibility are related to the following programs of the Office of the Chief Human Resources Officer:

• Collective Bargaining and Labour Relations
• Pension and Benefits Management
• People Management and Executive Policies and Initiatives

The following table presents a detailed breakdown of employer expenses by major category:

7. Comparative information

Because of significant differences between the Secretariat’s previous Program Alignment Architecture and its new Departmental Results Framework, expenses for 2016–17 and 2017–18 could not be prepared on the same basis. The 2016–17 expenses are presented by Program in accordance the Secretariat’s previous Program Alignment Architecture, whereas expenses for 2017–18 are presented by Core Responsibility in accordance with the Secretariat’s new Departmental Results Framework.