Future-Oriented Statement of Operations (unaudited) for the year ending March 31, 2020 - Treasury Board of Canada Secretariat 2019-20 Departmental Plan
Elements | Forecast Results 2018-19 |
Planned Results 2019-20 |
---|---|---|
Expenses | ||
Spending Oversight
|
49,654 | 43,086 |
Administrative Leadership
|
90,966 | 94,571 |
Employer (Note 6)
|
6,148,706 | 2,728,325 |
Regulatory Oversight
|
10,095 | 9,605 |
Internal Services
|
100,434 | 99,525 |
Total expenses | 6,399,855 | 2,975,112 |
Revenues | ||
Recovery of pension administration costs
|
7,986 | 7,737 |
Internal support services
|
6,798 | 6,925 |
Parking fees, government-wide
|
2,280 | 2,166 |
Gross revenues
|
17,064 | 16,828 |
Revenues earned on behalf of government
|
3,618 | 3,542 |
Total net revenues | 13,446 | 13,286 |
Net cost of operations before government funding and transfers | 6,386,409 | 2,961,826 |
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 Treasury Board of Canada Secretariat (TBS) supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. TBS is headed by a Secretary, who reports to the President of the Treasury Board.
The mission of TBS 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 responsibilities in accordance with TBS’s Departmental Results Framework.
The core business of the Secretariat is currently organized into the following core responsibilities:
a) Spending Oversight
Review spending proposals and authorities; review existing and proposed government programs for efficiency, effectiveness and relevance; provide information to Parliament and Canadians on government spending.
b) Administrative Leadership
Lead government-wide initiatives; develop policies and set the strategic direction for government administration related to service delivery and access to government information, as well as the management of assets, finances, information and technology.
c) Employer
Develop policies and set the strategic direction for people management in the public service; manage total compensation (including pensions and benefits) and labour relations; undertake initiatives to improve performance in support of recruitment and retention.
d) Regulatory Oversight
Develop and oversee policies to promote good regulatory practices, review proposed regulations to ensure they adhere to the requirements of government policy, and advance regulatory cooperation across jurisdictions.
e) Internal services
Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.
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 2018–19 and the planned results for fiscal year 2019–20 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.
Amounts presented in the Departmental Plan include Treasury Board central votes used to supplement the appropriations of other federal organizations for items such as government contingencies, government-wide initiatives, compensation requirements, operating and capital budget carry forward, and paylist expenditures. However, the results presented in the Future‑Oriented Statement of Operations exclude these funds because:
- the related expenses are incurred by individual departments and agencies
- TBS is accountable for reporting on only its own expenses (see Note 5b)
The main assumptions underlying the forecasts are as follows:
- TBS’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 2018–19 and 2019–20. 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, TBS 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, such as new initiatives or technical adjustments later in the fiscal year
Once the Departmental Plan is tabled in Parliament, TBS will not be updating the forecasts for any changes in financial resources made in ensuing Supplementary Estimates. Variances will be explained in TBS’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
Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.
Operating expenses are recorded on an accrual basis when goods are received or services are rendered and include the following:
- public service employer payments recorded centrally by TBS on behalf of other federal organizations
- departmental salaries and employee benefits, professional and special services, transportation and telecommunications, equipment and furniture, rentals, repairs and maintenance, utilities, materials and supplies
- services provided without charge by other government departments for accommodation and legal services reported at their estimated cost
- vacation pay and compensatory leave accrued as the benefits are 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 TBS’s liabilities. Although the Secretary is expected to maintain accounting control, he or 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
TBS receives most of its funding through expenditure authorities provided by Parliament. Financial reporting of authorities provided to TBS 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, TBS has a 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 2018-19 |
Planned Results 2019-20 |
---|---|---|
Net cost of operations before government funding and transfers | 6,386,409 | 2,961,826 |
Adjustments for items affecting net cost of operations but not affecting authorities: | ||
Amortization of tangible capital assets
|
(5,121) | (5,870) |
Loss on disposal and write off of tangible capital assets
|
(428) | 0 |
Services provided without charge by other government departments
|
(21,203) | (21,110) |
(Increase) / Decrease in vacation pay and compensatory leave
|
(374) | 269 |
(Increase) / Decrease in employee future benefits
|
(201) | 1,570 |
Increase in accrued liabilities not charged to authorities
|
(4,504) | (3,069) |
Other
|
(1,591) | (361) |
Total items affecting net cost of operations but not affecting authorities | (33,422) | (28,571) |
Adjustments for items not affecting net cost of operations but affecting authorities: | ||
Acquisition of tangible capital assets
|
21,364 | 11,498 |
Salary overpayments to be recovered
|
1,596 | 1,263 |
Increase in prepaid expenses
|
76 | 84 |
Total items not affecting net cost of operations but affecting authorities | 23,036 | 12,845 |
Requested authorities | 6,376,023 | 2,946,100 |
b) Authorities requested (in thousands of dollars)
Elements | Forecast Results 2018-19 |
Planned Results 2019-20 |
---|---|---|
Authorities requested | ||
Vote 1: program expenditures
|
294,155 | 259,076 |
Vote 5: government contingencies
|
750,000 | 750,000 |
Vote 10: government-wide initiatives
|
375,230 | 326,826 |
Vote 15: compensation adjustments
|
549,625 | 0 |
Vote 20: public service insurance
|
2,952,920 | 2,656,910 |
Vote 25: operating budget carry forward
|
1,282,095 | 1,600,000 |
Vote 30: paylist requirements
|
800,000 | 600,000 |
Vote 35: capital budget carry forward
|
537,259 | 800,000 |
Vote 40: budget implementation
|
5,965,515 | 0 |
Statutory amounts
|
3,136,963 | 30,114 |
Total authorities requested | 16,643,762 | 7,022,926 |
Less: Authorities to transfer or lapsetable 3 note 1 |
||
Vote 1: program expenditures
|
(8,015) | 0 |
Vote 5: government contingencies
|
(750,000) | (750,000) |
Vote 10: government-wide initiatives
|
(375,230) | (326,826) |
Vote 15: compensation adjustments
|
(549,625) | 0 |
Vote 20: public service insurance
|
0 | 0 |
Vote 25: operating budget carry forward
|
(1,282,095) | (1,600,000) |
Vote 30: paylist requirements
|
(800,000) | (600,000) |
Vote 35: capital budget carry forward
|
(537,259) | (800,000) |
Vote 40: budget implementation
|
(5,965,515) | 0 |
Subtotal | (10,267,739) | (4,076,826) |
Requested authorities | 6,376,023 | 2,946,100 |
Table 3 Notes
|
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 recorded centrally by TBS 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 TBS’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
- the employer’s share of 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 premiums
- 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, statutory employer contributions to the Public Service Pension Plan, Public Service Death Benefit Account, Canada Pension Plan, Québec Pension Plan, and Employment Insurance premiums are recovered from all departments, agencies and revolving funds, based on expenses incurred for salaries and wages. Non-statutory contributions to other employee benefit plans and payroll-related employer obligations are provided on a without-charge basis for most departments and agencies and on a recovery basis for revolving funds and certain departments and agencies, based on a percentage of expenses incurred for salaries and wages.
Departmental expenses under the “Employer” core responsibility are related to the following activities 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 2018-19 |
Planned Results 2019-20 |
---|---|---|
Public service employer payments | ||
Employer’s contributions to government employee benefit plans (statutory)table 4 note 1
|
3,370,129 | 3,529,350 |
Public Service Pension Plan contributions in respect of actuarial deficits (statutory)
|
3,107,000 | 0 |
Public Service Health Care Plan claims (Vote 20)
|
1,429,169 | 1,497,063 |
Group disability and life insurance premiums (Vote 20)
|
930,150 | 504,730 |
Provincial payroll taxes (Vote 20)
|
635,310 | 665,816 |
Public service and pensioners’ dental care plan claims (Vote 20)
|
558,927 | 584,751 |
Provincial insurance plan premiums and other expenses (Vote 20)
|
80,391 | 84,143 |
Subtotal expenses
|
10,111,076 | 6,865,853 |
Employer’s contributions to government employee benefit plans recovered from government departments and agencies (statutory)
|
(3,370,129) | (3,529,350) |
Employee, pensioner and employer contributions to group insurance plans (Vote 20)table 4 note 2
|
(676,712) | (676,712) |
Subtotal recoveries
|
(4,046,841) | (4,206,062) |
Net public service employer payments | 6,064,235 | 2,659,791 |
Departmental expenses (Vote 1)table 4 note 3 | 84,471 | 68,534 |
Total employer expenses | 6,148,706 | 2,728,325 |
Table 4 Notes
|
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