Future-Oriented Statement of Operations (unaudited) for the year ending March 31, 2019 - Treasury Board of Canada Secretariat 2018-19 Departmental Plan

Treasury Board of Canada Secretariat
Future-Oriented Statement of Operations (unaudited)
for the year ending
(in thousands of dollars)

Elements Forecast Results
2017-18
Planned Results
2018-19
Expenses
Spending Oversight
49,823 47,174
Administrative Leadership
111,418 80,765
Employer (Note 6)
3,702,930 2,807,017
Regulatory Oversight
7,126 6,920
Internal Services
96,626 93,049
Total expenses 3,967,923 3,034,925
Revenues
Recovery of pension administration costs
8,022 7,986
Internal support services
5,978 6,798
Parking fees, government-wide
2,424 2,424
Other
124 30
Gross revenues
16,548 17,238
Revenues earned on behalf of government
3,909 3,792
Total net revenues 12,639 13,446
Net cost of operations before government funding and transfers 3,955,284 3,021,479

The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Notes to the Future-Oriented Statement of Operations (unaudited)

1. Authority and Objectives

Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. The Secretariat is headed by a Secretary, who reports to the President of the Treasury Board.

The mission of the Secretariat is to ensure that rigorous stewardship of public resources achieves results for Canadians.

Expenses are presented in the Future-Oriented Statement of Operations by Core Responsibility in accordance with the Secretariat’s Departmental Results Framework.  For more information on the Secretariat’s Core Responsibilities, see the “Planned results: what we want to achieve this year and beyond” 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 2017-18 and the planned results for fiscal year 2018-19 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 .

3. Variations and changes to the forecast financial information

Forecasts have been made for 2017-18 and 2018-19. 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:

a) Expenses

Expenses are recorded on an accrual basis when goods are received or services are rendered. These expenses include the following:

  • services provided without charge by other government departments for accommodation and legal services reported at their estimated cost
  • vacation pay and compensatory leave when earned by employees under their respective terms of employment
  • amortization of tangible capital assets, which is recorded on a straight-line basis over the estimated useful life of each asset. Tangible capital assets are capitalized at their acquisition cost
b) Revenues

Revenues are accounted for in the period in which the related transactions, or the event that gives rise to the revenues, occurred.

Revenues that are non-respendable are not available to discharge the Secretariat’s liabilities. Although the Secretary of the Treasury Board is expected to maintain accounting control, she has no authority over the disposition of non-respendable revenues. As a result, non‑respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity’s gross revenues.

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 approved 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: 

a) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Elements Forecast Results
2017-18
Planned Results
2018-19
Net cost of operations before government funding and transfers 3,955,284 3,021,479
Adjustment for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets
(4,835) (5,449)
Net loss on disposal and write off of tangible capital assets
(291) 0
Services provided without charge by other government departments
(23,184) (21,907)
Change in vacation pay and compensatory leave liabilities
(483) 371
Change in accrued liabilities
(7,541) 4,218
Other
(208) (73)
Total items affecting net cost of operations but not affecting authorities (36,542) (22,840)
Adjustment for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets
24,034 1,474
Salary overpayments to be recovered
751 0
Change in prepaid expenses
85 81
Total items not affecting net cost of operations but affecting authorities 24,870 1,555
Requested authorities 3,943,612 3,000,194
b) Authorities requested (in thousands of dollars)
Elements Forecast Results
2017-18
Planned Results
2018-19
Authorities requested
Vote 1: program expenditures
309,300 233,306
Vote 5: government contingencies
750,000 750,000
Vote 10: government-wide initiatives
2,500 28,193
Vote 15: compensation adjustments
690,686 0
Vote 20: public service insurance
3,274,681 2,398,905
Vote 25: operating budget carry forward
1,377,002 1,600,000
Vote 30: paylist requirements
1,475,000 600,000
Vote 33: capital budget carry forward
557,780 600,000
Vote 40: budget implementation
0 7,040,392
Subtotal 8,436,949 13,250,796
Statutory amounts
Employer contributions made under the Public Service Superannuation Act, other retirement Acts and the Employment Insurance Act
340,000 340,000
Contributions to employee benefit plans
29,295 27,897
President of the Treasury Board: salary and motor car allowance
84 86
Spending of proceeds from the disposal of surplus Crown assets
8 0
Subtotal 369,387 367,983
Less:
Authorities to transfer or lapse
Vote 1: program expenditures
(9,748) 0
Vote 5: government contingencies
(750,000) (750,000)
Vote 10: government-wide initiatives
(2,500) (28,193)
Vote 15: compensation adjustments
(690,686) 0
Vote 20: public service insurance
0 0
Vote 25: operating budget carry forward
(1,377,002) (1,600,000)
Vote 30: paylist requirements
(1,475,000) (600,000)
Vote 33: capital budget carry forward
(557,780) (600,000)
Vote 40: budget implementation
0 (7,040,392)
Statutory amounts
(8) 0
Subtotal (4,862,724) (10,618,585)
Requested authorities 3,943,612 3,000,194

The authorities presented reflect current forecasts of statutory items; approved initiatives included (or expected to be included) in Estimates documents; and estimates of amounts to be allocated from Treasury Board Central Votes.

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 their 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:

Employer expenses by major category (in thousands of dollars)
Elements Forecast Results
2017-18
Planned Results
2018-19
Public service employer payments
Employer’s contributions to government employee benefit plans (statutory)table 4 note 1
3,004,968 3,035,711
Public Service Health Care Plan claims (Vote 20)
1,412,293 1,292,401
Group disability and life insurance premiums (Vote 20)
1,358,494 670,538
Provincial payroll taxes (Vote 20)
598,909 520,258
Public service and pensioners’ dental care plan claims (Vote 20)
490,781 492,563
Public Service Pension Plan in respect of actuarial deficits (statutory)
340,000 340,000
Provincial insurance plan premiums and other expenses (Vote 20)
101,231 95,639
Subtotal expenses
7,306,676 6,447,110
Employer’s contributions to government employee benefit plans recovered from government departments and agencies (statutory)
(3,004,968) (3,035,711)
Employee, pensioner and employer contributions to group insurance plans (Vote 20)table 4 note 2
(676,712) (676,712)
Subtotal recoveries
(3,681,680) (3,712,423)
Net public service employer payments 3,624,996 2,734,687
Departmental expenses (Vote 1)table 4 note 3 77,934 72,330
Total employer expenses 3,702,930 2,807,017
Table 4 Notes
Table 4 Note 1

These amounts include contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, the Canada Pension Plan and the Québec Pension Plan, Employment Insurance and the Public Service Death Benefit Account.

Return to table 4 note 1 referrer

Table 4 Note 2

This amount consists mainly of contributions to health, dental and disability plans, including any related taxes or premiums payable to Canadian provinces.

Return to table 4 note 2 referrer

Table 4 Note 3

Departmental expenses (Vote 1) comprise expenses related to the programs of the Office of the Chief Human Resources Officer under the “Employer” Core Responsibility (Note 6).

Return to table 4 note 3 referrer

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