Treasury Board of Canada Secretariat Financial Statements (Unaudited) for the Year Ended March 31, 2024

On this page

• Statement of Management Responsibility including Internal Control over Financial Reporting
• Statement of Financial Position (unaudited)
• Statement of Operations and Departmental Net Financial Position (unaudited)
• Statement of Change in Departmental Net Financial Asset (unaudited)
• Statement of Cash Flows (unaudited)
• Notes to the financial statements (unaudited)

Statement of Management Responsibility including Internal Control over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2024, and all information contained in these statements, rests with the management of the Treasury Board of Canada Secretariat (TBS). These financial statements have been prepared by management using the Government of Canada’s accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the TBS financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the TBS Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable; that assets are safeguarded; and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout TBS; and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2024, was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The annex also provides information on the status of the risk-based assessment of the controls over common services provided by TBS that have a bearing on a recipient’s departmental financial statements.

The effectiveness and adequacy of the TBS system of ICFR is reviewed by internal audit staff, who conduct periodic audits of different areas of TBS’s operations, and by the departmental audit committee, which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting, and which reviews the financial statements and provides advice to the Secretary of the Treasury Board.

The financial statements of TBS have not been audited.

Statement of Financial Position (unaudited) as at March 31

($ thousands)

Statement of Financial Position (unaudited) as at March 31 (in thousands of dollars)

	2024	2023
Financial assets
Accounts receivable and advances (Note 4)	1,076,532	635,870
Due from Consolidated Revenue Fund	0	0
Total gross financial assets	1,076,532	635,870
Financial assets held on behalf of government
Accounts receivable and advances (Note 4)	(6,075)	(7,287)
Total financial assets held on behalf of government	(6,075)	(7,287)
Total net financial assets	1,070,457	628,583
Liabilities
Accounts payable and accrued liabilities (Note 5)	509,645	581,916
Due to Consolidated Revenue Fund	530,206	15,680
Vacation pay and compensatory leave	23,034	22,152
Employee future benefits (Note 7)	6,916	7,362
Total liabilities	1,069,801	627,110
Departmental net financial asset	656	1,473
Non-financial assets
Prepaid expenses	386	378
Tangible capital assets (Note 8)	40,685	47,409
Total non-financial assets	41,071	47,787
Departmental net financial position	41,727	49,260
Table notes: The accompanying notes form an integral part of these financial statements. For contractual obligations, see Note 9. For contingent liabilities, see Note 10.

Statement of Operations and Departmental Net Financial Position (Unaudited) for the year ended March 31

($ thousands)

Statement of Operations and Departmental Net Financial Position (Unaudited) for the year ended March 31 (in thousands of dollars)

	2024 Planned results	2024 Actual	2023 Actual
Expenses
Spending oversight	45,715	52,185	46,836
Administrative leadership	203,919	153,672	201,956
Employer (Note 13b)	3,493,627	3,968,259	3,887,596
Regulatory oversight	12,642	13,424	12,096
Internal services	108,475	143,698	126,019
Total expenses	3,864,378	4,331,238	4,274,503
Revenues (Note 6)
Services to other government departments	74,749	32,139	28,936
Internal support services	10,014	20,393	18,631
Recovery of pension administration costs	11,740	9,492	9,506
Other revenues	1,129	1,652	1,043
Gross revenues	97,632	63,676	58,116
Revenues earned on behalf of government	(5,481)	(5,235)	(4,546)
Total net revenues	92,151	58,441	53,570
Net cost from continuing operations	3,772,227	4,272,797	4,220,933
Transferred operations (Note 12)
Expenses	0	5,274	19,132
Net cost of transferred operations	0	5,274	19,132
Net cost of operations before government funding and transfers	3,772,227	4,278,071	4,240,065
Government funding and transfers
Net cash provided by Government of Canada		4,763,612	4,201,054
Change in due from Consolidated Revenue Fund		(514,526)	(46,487)
Services provided without charge by other government departments (Note 11a)		22,995	23,582
Transfers of assets and liabilities (to) or from other government departments (Note 12)		(1,543)	93
Total government funding and transfers		4,270,538	4,178,242
Net cost of operations after government funding and transfers		7,533	61,823
Departmental net financial position – Beginning of year		49,260	111,083
Departmental net financial position – End of year		41,727	49,260
Table notes The accompanying notes form an integral part of these financial statements. For segmented information, see Note 13. Planned results were presented in the 2023–24 Future-Oriented Statement of Operations and were included in TBS’s 2023–24 Departmental Plan based on plans as at January 18, 2023 (also see Note 2a).

Statement of Change in Departmental Net Financial Asset (Unaudited) for the year ended March 31

($ thousands)

Statement of Change in Departmental Net Financial Asset (Unaudited) for the year ended March 31 (in thousands of dollars)

	2024	2023
Net cost of operations after government funding and transfers	(7,533)	(61,823)
Change due to tangible capital assets (Note 8)
Acquisition of tangible capital assets	(3,538)	(5,127)
Amortization of tangible capital assets	8,203	7,808
Proceeds from disposal of tangible capital assets	0	14
Net loss on disposal and write-off of tangible capital assets	801	51,750
Net transfer of tangible capital assets to other government departments (Note 12)	1,258	0
Other adjustments to tangible capital assets	0	(1,262)
Total change due to tangible capital assets	6,724	53,183
Change due to prepaid expenses	(8)	185
Net decrease in departmental net financial asset	(817)	(8,455)
Departmental net financial asset – Beginning of year	1,473	9,928
Departmental net financial asset – End of year	656	1,473
Table note The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (Unaudited) for the year ended March 31

($ thousands)

Statement of Cash Flows (Unaudited) for the year ended March 31 (in thousands of dollars)

	2024	2023
Operating activities
Net cost of operations before government funding and transfers	4,278,071	4,240,065
Non-cash items:
Amortization of tangible capital assets	(8,203)	(7,808)
Net loss on disposal and write-off of tangible capital assets	(801)	(51,750)
Other adjustments to tangible capital assets	0	1,262
Services provided without charge by other government departments (Note 11a)	(22,995)	(23,582)
Variations in Statement of Financial Position:
Increase in accounts receivable and advances	441,874	143,864
Increase (decrease) in prepaid expenses	8	(185)
Decrease (increase) in accounts payable and accrued liabilities	72,271	(105,001)
Increase in vacation pay and compensatory leave	(882)	(938)
Decrease in employee future benefits	446	107
Transfer of financial assets and liabilities to or (from) other government departments (Note 12)	285	(93)
Cash used in operating activities	4,760,074	4,195,941
Capital investing activities
Acquisitions of tangible capital assets	3,538	5,127
Proceeds from disposal of tangible capital assets	0	(14)
Cash used in capital investing activities	3,538	5,113
Net cash provided by the Government of Canada	4,763,612	4,201,054
Table note The accompanying notes form an integral part of these financial statements.

Notes to the financial statements (Unaudited) for the year ended March 31

In this section

1. 1. Authority and objectives
2. 2. Summary of significant accounting policies
3. 3. Parliamentary authorities
4. 4. Accounts receivable and advances
5. 5. Accounts payable and accrued liabilities
6. 6. Revenues
7. 7. Employee future benefits
8. 8. Tangible capital assets
9. 9. Contractual obligations
10. 10. Contingent liabilities
11. 11. Related-party transactions
12. 12. Transfers from or to other government departments
13. 13. Segmented information
14. 14. Comparative information

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 the Secretary of the Treasury Board, who reports to the President of the Treasury Board.

TBS’s mission is to ensure that rigorous stewardship of public resources achieves results for Canadians.

TBS’s core business is organized into the following core responsibilities, and internal services:

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 that 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:

• acquisition management services
• communications services
• financial management services
• human resources management services
• information management services
• information technology services
• legal services
• materiel management services
• management and oversight services
• real property management services

2. Summary of significant accounting policies

These financial statements have been prepared using TBS’s accounting policies stated below, which 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.

The significant accounting policies are as follows.

a) Parliamentary authorities

TBS is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to TBS do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.

Note 3 provides a reconciliation between the bases of reporting. The “planned results” amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2023–24 Departmental Plan. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position or in the Statement of Change in Departmental Net Financial Assets because these amounts were not included in the 2023–24 Departmental Plan.

b) Net cash provided by government

TBS operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by TBS is deposited to the CRF, and all cash disbursements made by TBS are paid from the CRF. The net cash provided by government is the difference between all cash receipts and all cash disbursements, including transactions between government departments.

c) Amounts due from or to the CRF

Amounts due from or to the CRF are the result of timing differences at year-end between the time when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that TBS is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

Revenues are accounted for in the period in which the related transaction or event that gave rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge TBS’s liabilities. While the Secretary of the Treasury Board is expected to maintain accounting control, they have no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are earned on behalf of the Government of Canada and, therefore, are presented as a reduction of the entity’s gross revenues. Revenues earned on behalf of government consist of the sale of services, gains on sales of assets, interest revenue and miscellaneous revenues.

e) Expenses

Transfer payments are recorded as an expense in the year that the transfer is authorized, and all eligibility criteria have been met by the recipient.

Operating expenses, such as departmental salaries and employee benefits; professional and special services; transportation and telecommunications; equipment and furniture; rentals; repairs and maintenance; and utilities, materials and supplies, are recorded on an accrual basis when goods are received or services are rendered.

Public service employer payments recorded centrally by TBS on behalf of other federal organizations are expensed in the year incurred.

Services provided without charge by other government departments for accommodation and legal services are reported at their estimated cost.

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

Amortization of tangible capital assets is recorded on a straight-line basis over the estimated useful life of each asset.

f) Employee benefits

g) Financial instruments

A contract establishing a financial instrument creates, at its inception, rights, and obligations to receive or deliver economic benefits. The financial assets and financial liabilities portray these rights and obligations in the financial statements. TBS recognizes a financial instrument when it becomes a party to a financial instrument contract.

Financial instruments consist of accounts receivable, and accounts payable and accrued liabilities. All financial assets and liabilities are recorded at cost or amortized cost. Any associated transaction costs are added to the carrying value upon initial recognition. For financial instruments measured at amortized cost, the effective interest method is used to determine interest revenue or expense.

Accounts receivable and advances are stated at the lower of cost or net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.

Accounts receivable held on behalf of government are presented in these financial statements as the Secretary must maintain accounting control for these items; however, they are later presented as a reduction to TBS’s gross financial assets because the receipt of these receivables cannot be used by TBS to discharge existing liabilities.

h) Tangible capital assets

The costs of acquiring equipment and other capital property are capitalized as tangible capital assets and are amortized to expense over the estimated useful lives of the assets, as described in Note 8. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collection and Crown land to which no acquisition cost is attributable, and intangible assets.

i) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued, and an expense is recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. The estimates are based on facts and circumstances, historical experience and general economic conditions, and they reflect the government’s best estimate of the related amount at the end of the reporting period.

The most significant items where estimates are used are contingent liabilities, the liability for claims incurred but not yet reported under the public service health and dental care plans, the liability for employee future benefits, and the useful life of tangible capital assets.

Actual results could significantly differ from those estimated. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

k) Related‑party transactions

Related‑party transactions, other than inter‑entity transactions, are recorded at the exchange amount.

Inter‑entity transactions are transactions between commonly controlled entities. Inter‑entity transactions, other than restructuring transactions, are recorded on a gross basis, and are measured at the carrying amount, except for the following:

1. Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and are measured at the exchange amount.
2. Certain services received on a “without charge” basis are recorded for departmental financial statement purposes at the carrying amount.

3. Parliamentary authorities

TBS receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through the parliamentary authorities in prior, current, or future years. Accordingly, TBS has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables.

a) Reconciliation of net cost of operations to current year authorities used

($ thousands)

a) Reconciliation of net cost of operations to current year authorities used (in thousands of dollars)

	2024	2023
Net cost of operations before government funding and transfers	4,278,071	4,240,065
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(8,203)	(7,808)
Net loss on disposal and write-off of tangible capital assets	(801)	(51,750)
Services provided without charge by other government departments	(22,995)	(23,582)
Increase in vacation pay and compensatory leave	(882)	(938)
Increase in contributions to group insurance plans to be credited to appropriations later	1,733	2,723
Decrease (increase) in employee future benefits	446	(129)
Increase in accrued liabilities not charged to authorities	(2,206)	(10,234)
Refund of prior years’ expenditures	1,323	6,421
Other	(704)	954
Total items affecting net cost of operations but not affecting authorities	(32,289)	(84,343)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisition of tangible capital assets	3,538	5,127
Salary overpayments to be recovered	720	1,128
Increase in advances and prepaid expenses	294	214
Total items not affecting net cost of operations but affecting authorities	4,552	6,469
Current year authorities used	4,250,334	4,162,191

b) Authorities provided and used

($ thousands)

b) Authorities provided and used (in thousands of dollars)

	2024	2023
Authorities provided
Vote 1: program expenditures	401,898	390,120
Vote 5: government contingencies	630,800	691,459
Vote 10: government-wide initiatives	77,758	132,192
Vote 20: public service insurance	3,951,175	3,771,828
Vote 25: operating budget carry‑forward	549,332	2,969
Vote 30: paylist requirements	281,709	469,419
Vote 35: capital budget carry‑forward	42,594	2,866
Statutory amounts	45,898	40,010
Total authorities provided	5,981,164	5,500,863
Less lapsed authorities
Vote 1: program expenditures	(51,036)	(27,818)
Vote 5: government contingencies	(630,800)	(691,459)
Vote 10: government-wide initiatives	(77,758)	(132,192)
Vote 20: public service insurance	(97,586)	(11,934)
Vote 25: operating budget carry‑forward	(549,332)	(2,969)
Vote 30: paylist requirements	(281,709)	(469,419)
Vote 35: capital budget carry‑forward	(42,594)	(2,866)
Statutory amounts	(15)	(15)
Current year authorities used	4,250,334	4,162,191

4. Accounts receivable and advances

The following table presents details of TBS’s accounts receivable and advance balances.

($ thousands)

The following table presents details of TBS’s accounts receivable and advance balances (in thousands of dollars)

	2024	2023
Receivables from other government departments and agencies	1,066,239	624,700
Receivables from external parties	10,666	10,993
Advances to employees	497	441
Subtotal accounts receivable and advances	1,077,402	636,134
Less allowance for doubtful accounts on external receivables	(869)	(264)
Gross accounts receivable and advances	1,076,533	635,870
Accounts receivable held on behalf of government	(6,075)	(7,287)
Net accounts receivable and advances	1,070,458	628,583

The following table provides an aging analysis of accounts receivable from external parties.

($ thousands)

The following table provides an aging analysis of accounts receivable from external parties (in thousands of dollars)

Accounts receivable from external parties	2024	2023
Not past due	10,149	10,487
Number of days past due
1 to 30	0	0
31 to 90	0	0
91 to 365	0	0
Over 365	517	506
Total receivables from external parties	10,666	10,993

5. Accounts payable and accrued liabilities

The following table presents the details of TBS’s accounts payable and accrued liabilities.

($ thousands)

The following table presents the details of TBS’s accounts payable and accrued liabilities (in thousands of dollars)

	2024	2023
Accounts payable to other government departments and agencies	327,333	454,100
Accounts payable to external parties	64,897	29,020
Total accounts payable	392,230	483,120
Accrued liabilities	117,416	98,796
Total accounts payable and accrued liabilities	509,646	581,916

6. Revenues

Revenues are comprised of revenues earned from non-tax sources. They include exchange transactions where goods or services are provided for consideration where a performance obligation exists, and non-exchange transactions where no performance obligations exist to provide a good or service. These transactions can be recurring or non-recurring in nature. Recurring transactions are viewed as ongoing, routine activities that form part of the normal course of operations and can be used to indicate if they can be reasonably expected to be earned again in future years.

The table below presents the TBS revenues by major categories.

($ thousands)

The table below presents the TBS revenues by major categories (in thousands of dollars)

Revenues	2024	2023
Revenues from other government departments
Services to other government departments (exchange)	32,139	28,936
Internal support services (exchange)	20,393	18,631
Recovery of pension administration costs (exchange)	9,492	9,506
Total revenues from other government departments	62,024	57,073
Other revenues:
Sales of services (exchange)	1,219	922
Interest revenue (non-exchange)	412	93
Gains on sales of assets (exchange)	0	15
Miscellaneous (non-exchange)	21	13
Total other revenues	1,652	1,043
Revenues earned on behalf of Government (exchange and non-exchange)	(5,235)	(4,546)
Total revenuestable 6 note *	58,441	53,570
Table 6 Notes Table notes: Table 6 Note 1 Total non-recurring revenues of $393 thousand were incurred in relation to interest revenue and miscellaneous. Return to table 6 note * referrer

7. Employee future benefits

a) Pension benefits

TBS’s employees participate in the Public Service Pension Plan (the Plan), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years, at a rate of 2% per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada Pension Plan and Québec Pension Plan benefits, and they are indexed to inflation.

Both the employees and TBS contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups:

1. Group 1 relates to existing Plan members as of December 31, 2012
2. Group 2 relates to members joining the Plan as of January 1, 2013

Each group has a distinct contribution rate. The employer expense in 2023–24 amounts to $27.1 million ($26.1 million in 2022–23). For Group 1 members, the expense represents approximately 1.02 times (1.02 times in 2022–23) the employee contributions and, for Group 2 members, approximately 1.00 (1.00 times in 2022–23) times the employee contributions.

b) Severance benefits

Severance benefits provided to TBS’s employees were previously based on an employee’s eligibility, years of service and salary at termination of employment. However, since 2011, the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits upon departure from the public service. By March 31, 2024, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

The changes in the obligations during the year were as follows.

($ thousands)

The changes in the obligations during the year were as follows (in thousands of dollars)

	2024	2023
Accrued benefit obligation (beginning of year)	7,362	7,469
Expense for the year	551	368
Benefits paid during the year	(997)	(475)
Accrued benefit obligation (end of year)	6,916	7,362

8. Tangible capital assets

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows

Asset class	Amortization period
Computer software	3 to 10 years
Machinery and equipment	3 to 10 years
Motor vehicles	5 to 7 years
Assets under construction	Once in service, in accordance with asset type
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use and are not amortized until they become available for use.

The following table presents the details of tangible capital assets.

($ thousands)

The following table presents the details of tangible capital assets ($ thousands)

	Cost				Accumulated amortization				Net book value
Capital asset class	Opening balance	Acquisi-tions	Adjust-mentstable 8 note *	Closing balance	Opening balance	Amortiz-ation	Adjust-mentstable 8 note *	Closing balance	2024table 8 note **	2023
Assets under construction	1,333	3,286	(1,283)	3,336	0	0	0	0	3,336	1,333
Machinery and equipment	16,926	252	(455)	16,723	12,396	1,191	(238)	13,349	3,374	4,530
Motor vehicles	65	0	49	114	47	15	31	93	21	18
Leasehold improvements	11,513	0	(148)	11,365	7,849	1,060	(155)	8,754	2,611	3,664
Computer software	58,316	0	(859)	57,457	20,452	5,937	(275)	26,114	31,343	37,864
Total	88,153	3,538	(2,696)	88,995	40,744	8,203	(637)	48,310	40,685	47,409
Table 8 Notes Table notes: Table 8 Note 1 The adjustments include assets under construction of $0.5 million that were transferred to the other categories upon completion of the assets, write-down and write-offs of assets under construction of $0.8 million, the transfer of machinery and equipment of $0.2 million and of leasehold improvements of $0.2 million in net book value to Public Services and Procurement Canada (Note 12). TBS also received a motor vehicle with a net book value of $18 thousand from National Defence and in accordance with Order-in-Council 2023-0784 issued July 26, 2023, TBS transferred computer software with a net book value of $0.8 million to Employment and Social Development Canada (Note 12). Return to table 8 note * referrer Table 8 Note 2 The 2024 net book value includes machinery and equipment with a net book value of $2.1 million and leasehold improvements with a net book value of $1.1 million that have been removed from services and are intended for disposal. Return to table 8 note ** referrer

9. Contractual obligations

The nature of TBS’s activities can result in some large multi-year contracts and obligations whereby TBS is obligated to make future payments when services or goods are received, or for its transfer payment programs. Significant contractual obligations that can be reasonably estimated are summarized in the following table.

($ thousands)

Significant contractual obligations that can be reasonably estimated are summarized in the following table ($ thousands)

	2025	2026	2027	2028	2029	2030 and subsequent	Total
Public service and pensioners’ health and dental insurance plans	139,712	38,523	51,418	58,356	63,010	139,746	490,765
Information technology acquisitions, licences and rentals	29,178	28,030	26,576	26,576	26,576	53,151	190,087
Professional services	41,044	820	691	118	92	92	42,857
Transfer payments	212	0	0	0	0	0	212
Total	210,146	67,373	78,685	85,050	89,678	192,989	723,921

10. Contingent liabilities

Claims and litigations

Claims have been made against TBS in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. TBS has recorded an allowance for claims and litigations where it is likely that there will be a future payment and where a reasonable estimate of the loss can be made, except for certain unresolved claims related to ongoing negotiations. Due to the sensitivity of these latter claims, an allowance has been recorded centrally by the Office of the Comptroller General in the consolidated financial statements of the Government of Canada. Upon resolution in the future, any resulting allowance for these claims will be recorded by the department and could be material. Claims for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $1.6 million at March 31, 2024 ($2.5 million in 2022–23). None of these claims is with related parties.

11. Related-party transactions

TBS is related, as a result of common ownership, to all Government of Canada departments, agencies and Crown corporations. Related parties also include TBS’s key management personnel and their close family members, as well as entities that are controlled by, or are under shared control of, these individuals. TBS may enter into transactions with these entities in the normal course of business and on normal trade terms.

In addition, TBS has the responsibility to administer and fund, on behalf of other government departments, the employer’s contribution to health, dental and other employee insurance plans and payroll benefits through its centrally managed funds (refer to Note 11b).

During the year, TBS received and provided common services as disclosed in the following sections.

a) Common services provided without charge by other government departments

TBS received accommodation and legal services from certain common service organizations. These services were provided without charge and have been recorded at the carrying value in TBS’s Statement of Operations and Departmental Net Financial Position as follows.

($ thousands)

Common services provided without charge by other government departments ($ thousands)

	2024	2023
Accommodation	20,387	20,689
Legal services	2,608	2,893
Total	22,995	23,582

To achieve efficiency and cost effectiveness, and to deliver programs economically to the public, the government has centralized some of its administrative activities. As a result, the government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The cost of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and audit services provided by the Office of the Auditor General, are not included in TBS’s Statement of Operations and Departmental Net Financial Position.

b) Common services provided without charge to other government departments

TBS provided services without charge to other government departments for the provision of the employer’s contribution to health, dental and other employee insurance plans and payroll benefits in the amount of $3.8 billion in 2023–24 ($3.7 billion in 2022–23).

c) Other transactions with related parties

($ thousands)

Other transactions with related parties ($ thousands)

	2024	2023
Expenses: Other government departments and agencies	13,543	19,581
Revenues: Other government departments and agencies	58,431	53,548

Expenses and revenues disclosed in (c) exclude common services provided without charge, which have already been disclosed in (a) and (b). The expenses are related to the acquisition of various goods and services and recoveries of costs from other departments and agencies related to shared-costs programs and employee transfers. The revenues are mainly related to SAP contract administration for the Government of Canada and internal support services provided to other departments and agencies, as well as the recovery of costs related to public service pension administration.

12. Transfers from or to other government departments

a) Transfers from or to other government departments as a result of a government reorganization

Effective July 26, 2023, TBS transferred responsibility for the Canadian Digital Service to the Department of Employment and Social Development in accordance with the Order-in-Council 2023-0784, including the stewardship responsibility for the assets and liabilities related to the program. Accordingly, TBS transferred the following assets and liabilities related to the Canadian Digital Service to the Department of Employment and Social Development on July 26, 2023.

($ thousands)

TBS transferred the following assets and liabilities related to the Canadian Digital Service to the Department of Employment and Social Development on July 26, 2023 ($ thousands)

	2024
Assets
Accounts receivable and advances	(122)
Non-financial assets
Tangible capital assets (net book value)	(833)
Total assets transferred	(955)
Liabilities
Accounts payable to other government departments and agencies	17
Accounts payable to external parties	15
Total liabilities transferred	32
Adjustment to the departmental net financial position	(923)

In addition, the 2024 figures prior to Order-in-Council 2023-0784 and 2023 comparative figures have been reclassified in the Statement of Operations and Departmental Net Financial Position to present the expenses of the transferred operations.

During the transition period, TBS continued to administer the transferred activities on behalf of the Department of Employment and Social Development. The administered expenses amounted to $13.7 million for the year. These expenses are not recorded in these financial statements.

b) Other transfers of assets and liabilities from or to other government departments

Throughout the year, transfers from or to other government departments of accounts receivable related to salary overpayments were made. These transfers are made when an employee transfers between departments before an outstanding salary overpayment is fully recovered by the department they transferred from.

In 2023–24, TBS also transferred leasehold improvements and machinery and equipment to Public Services and Procurement Canada and a motor vehicle was transferred to TBS from the Department of National Defence.

The impact of transfers from or to other government departments in the financial statements is as follows.

($ thousands)

The impact of transfers from or to other government departments in the financial statements is as follows ($ thousands)

	2024	2023
Financial assets
Accounts receivable and advances	(195)	93
Non-financial assets
Tangible capital assets (net book value)
To Public Services and Procurement Canada	(442)	0
From Department of National Defence	17	0
Transfers of assets and liabilities from or to other government departments	(620)	93

13. Segmented information

a) Expenses and revenues

Information for TBS is presented by segment based on a breakdown by core responsibility. This presentation is consistent with the accounting policies described in Note 2. The following table presents the expenses incurred and revenues generated for the core responsibilities and internal services, by major category of expenses and revenues.

($ thousands)

The following table presents the expenses incurred and revenues generated for the core responsibilities and internal services, by major category of expenses and revenues ($ thousands)

	Spending oversight	Administrative leadership	Employertable 13a note *	Regulatory oversight	Internal services	2024 total	2023 total
Transfer payments
Industry	126	581	0	0	0	707	635
Total transfer payments	126	581	0	0	0	707	635
Operating expenses
Public service employer payments	0	0	3,848,729	0	0	3,848,729	3,759,155
Salary and employee benefits	47,431	93,907	95,017	11,040	87,283	334,678	296,604
Professional and special services	947	22,093	10,265	1,312	37,341	71,958	70,118
Rentals	6	26,757	334	43	6,335	33,475	33,642
Accommodation	2,369	6,573	5,357	556	5,532	20,387	20,689
Amortization	7	4,918	21	3	3,217	8,166	7,697
Information	388	166	2,681	37	149	3,421	4,813
Machinery, equipment, parts and tools	13	78	61	1	1,322	1,475	3,720
Transport and telecommunications	56	284	462	62	343	1,207	1,324
Repair and maintenance	0	0	0	0	1,126	1,126	676
Utilities, materiel and supplies	14	68	126	1	101	310	226
Other	828	(1,753)	5,206	369	949	5,599	75,204
Total operating expenses	52,059	153,091	3,968,259	13,424	143,698	4,330,531	4,273,868
Total expenses	52,185	153,672	3,968,259	13,424	143,698	4,331,238	4,274,503
Revenues
Services to other government departments	0	31,515	0	0	624	32,139	28,936
Internal support services	0	0	0	0	20,393	20,393	18,631
Recovery of pension administration costs	0	0	9,492	0	0	9,492	9,506
Other revenues	0	0	1,516	0	136	1,652	1,043
Revenues earned on behalf of government	0	(196)	(3,476)	0	(1,563)	(5,235)	(4,546)
Total net revenues	0	31,319	7,532	0	19,590	58,441	53,570
Net cost from continuing operations	52,185	122,353	3,960,727	13,424	124,108	4,272,797	4,220,933
Table 13a Notes Table note: Table 13a Note 1 For details on employer expenses, see Note 13b. Return to table 13a note * referrer

b) Employer expenses

Total expenses reported under the “employer” core responsibility consist of 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 89% 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, British Columbia, 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 without charge 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 activities of the Office of the Chief Human Resources Officer.

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

($ thousands)

The following table presents a detailed breakdown of employer expenses by major category ($ thousands)

	2024	2023
Public service employer payments
Employer’s contributions to government employee benefit plans (statutory)table 13b note 1	5,464,265	4,688,512
Public Service Health Care Plan claims (Vote 20)	2,173,654	1,809,876
Provincial payroll taxes (Vote 20)	974,489	846,526
Group disability and life insurance premiums (Vote 20)	819,058	1,226,984
Public service and pensioners’ dental plans claims (Vote 20)	711,250	650,904
Provincial insurance plan premiums and other expenses (Vote 20)	74,590	60,442
Subtotal expenses	10,217,306	9,283,244
Employer’s contributions to government employee benefit plans recovered from government departments and agencies (statutory)	(5,464,265)	(4,688,512)
Employee, pensioner and employer contributions to group insurance plans (Vote 20)table 13b note 2	(904,312)	(835,577)
Subtotal recoveries	(6,368,577)	(5,524,089)
Net public service employer payments	3,848,729	3,759,155
Departmental expenses (Votes 1 and 20)table 13b note 3	119,530	128,441
Total employer expenses	3,968,259	3,887,596
Table 13b Notes Table note: Table 13b 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 13b note 1 referrer Table 13b 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 13b note 2 referrer Table 13b Note 3 Departmental expenses (Votes 1 and 20) are comprised of expenses related to the activities of the Office of the Chief Human Resources Officer. Return to table 13b note 3 referrer

14. Comparative information

Comparative figures have been reclassified to conform to the current year’s presentation.