Future-Oriented Statement of Operations - 2015–16 Report on Plans and Priorities - Treasury Board of Canada Secretariat
Treasury Board of Canada Secretariat
Future-Oriented Statement of Operations
For the Year Ending March 31, 2016
| Estimated Results 2014–15 |
Planned Results 2015–16 |
|
|---|---|---|
| Notes: The accompanying notes form an integral part of this future-oriented statement of operations. |
||
| Expenses (Note 7) | ||
|
Government-Wide Funds and Public Service Employer Payments (
Note 6)
|
2,943,555 | 2,685,362 |
|
Management Frameworks
|
60,830 | 0 |
|
People Management
|
154,457 | 0 |
|
Expenditure Management
|
34,705 | 0 |
|
Financial Management
|
36,380 | 0 |
|
Decision-Making Support and Oversight
|
0 | 51,263 |
|
Management Policies Development and Monitoring
|
0 | 79,597 |
|
Government-Wide Program Design and Delivery
|
0 | 63,510 |
|
Internal Services
|
72,251 | 82,868 |
| Total expenses | 3,302,178 | 2,962,600 |
| Revenues | ||
|
Recovery of pension administration costs
|
8,885 | 8,744 |
|
Internal support services
|
6,709 | 5,978 |
|
Parking fees – Government-wide
|
2,604 | 2,200 |
|
Other
|
87 | 66 |
|
Gross revenues
|
18,285 | 16,988 |
|
Revenues earned on behalf of government
|
(4,132) | (3,720) |
| Total net revenues | 14,153 | 13,268 |
| Net cost of operations | 3,288,025 | 2,949,332 |
1. Departmental Strategic Outcomes and Programs
For more information on the Secretariat's strategic outcomes and programs refer to Section II of the Report on Plans and Priorities.
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 Report on Plans and Priorities (RPP).
The information in the estimated results for fiscal year 2014–15 and the planned results for fiscal year 2015–16 are based on the activities and initiatives included in the forecast spending and planned spending amounts that are presented in the departmental RPP, expressed in terms of accrual accounting.
The main assumptions underlying the forecasts are as follows:
- The Secretariat's activities will remain substantially the same as for 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 adopted as at February 6, 2015.
3. Variations and Changes to the Forecast Financial Information
Forecasts have been made for 2014–15 and 2015–16. 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 concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Factors that could lead to material differences between the future-oriented statement of operations and the historical statement of operations include the following:
- The timing and amount of acquisitions and the disposal of property, plant and equipment, which may affect gains or losses and the amortization expense;
- Implementation of new collective agreements; and
- Further changes to the operating budget through additional new initiatives or technical adjustments later in the year.
Once the Report on Plans and Priorities is presented, 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 Performance Report.
4. Summary of Significant Accounting Policies
The future-oriented statement of operations has been prepared using Government of Canada accounting policies, 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.
Significant accounting policies are as follows:
a) Expenses
Expenses are recorded on an accrual basis and are recorded when goods are received or services are rendered. These expenses include:
- Services provided without charge by other government departments for accommodation and legal services 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 are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.
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. While the Secretary is expected to maintain accounting control, she has no authority regarding 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 do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily 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 a different net cost of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables.
| Estimated 2014–15 |
Planned 2015–16 |
|
|---|---|---|
| Net cost of operations | 3,288,025 | 2,949,332 |
| Adjustment for items affecting net cost of operations but not affecting authorities: | ||
|
Services provided without charge by other government departments
|
(19,008) | (19,868) |
|
Gain on disposal of tangible capital assets
|
11 | 29 |
|
Change in vacation pay and compensatory leave liabilities
|
(142) | 221 |
|
Change in employee future benefits
|
851 | 561 |
|
Amortization of tangible capital assets
|
(1,283) | (4,706) |
|
Refunds / Adjustment to previous years' expenditures
|
5,596 | 7,709 |
|
Total items affecting net cost of operations but not affecting authorities
|
(13,975) | (16,054) |
| Adjustment for items not affecting net cost of operations but affecting authorities: | ||
|
Acquisition of tangible capital assets
|
11,184 | 7,068 |
|
Change in prepaid expenses
|
11 | 8 |
|
Change in lease obligation for tangible capital assets
|
73 | 0 |
|
Total items not affecting net cost of operations but affecting authorities
|
11,268 | 7,076 |
| Requested authorities | 3,285,318 | 2,940,354 |
| Estimated 2014–15 |
Planned 2015–16 |
|
|---|---|---|
| Authorities requested: | ||
|
Vote 1 – Program expenditures
|
308,653 | 219,601 |
|
Vote 5 – Government contingencies
|
750,000 | 750,000 |
|
Vote 10 – Government-wide initiatives
|
103 | 2,090 |
|
Vote 20 – Public service insurance
|
2,506,134 | 2,250,071 |
|
Vote 25 – Operating budget carry forward
|
460,112 | 1,600,000 |
|
Vote 30 – Paylist requirements
|
1,742,785 | 1,000,000 |
|
Vote 33 – Capital budget carry forward
|
137,334 | 600,000 |
| Subtotal | 5,905,121 | 6,421,762 |
| Statutory amounts: | ||
|
Employer contributions made under the
Public Service Superannuation Act, other retirement Acts, and the
Employment Insurance Act
|
443,000 | 443,000 |
|
Contributions to employee benefit plans
|
27,434 | 27,600 |
|
President of the Treasury Board – Salary and motor car allowance
|
80 | 82 |
|
Payments for the pay equity settlement pursuant to section 30 of the
Crown Liability and Proceedings Act
|
17 | 0 |
|
Spending of proceeds from the disposal of surplus Crown assets
|
14 | 41 |
| Subtotal | 470,545 | 470,723 |
| Less: | ||
| Authorities to transfer or lapse: | ||
|
Vote 1 – Program expenditures
|
0 | 0 |
|
Vote 5 – Government contingencies
|
(750,000) | (750,000) |
|
Vote 10 – Government-wide initiatives
|
(103) | (2,090) |
|
Vote 20 – Public service insurance
|
0 | 0 |
|
Vote 25 – Operating budget carry forward
|
(460,112) | (1,600,000) |
|
Vote 30 – Paylist requirements
|
(1,742,785) | (1,000,000) |
|
Vote 33 – Capital budget carry forward
|
(137,334) | (600,000) |
|
Spending of proceeds from the disposal of surplus Crown assets
|
(14) | (41) |
| Subtotal | (3,090,348) | (3,952,131) |
| Requested authorities | 3,285,318 | 2,940,354 |
The authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents, and (when reasonable estimates can be made) estimates of amounts to be allocated from Treasury Board Central Votes.
6. Government-Wide Funds and Public Service Employer Payments
The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat also funds payments to, or in respect of, the following:
- Employer's share of contributions to the Public Service Death Benefit Account;
- Employer's share of Canada/Québec Pension Plan contributions and Employment Insurance premiums;
- Employer's share of health, disability, and life insurance premiums and related Québec sales tax;
- Employer's share of the Québec Parental Insurance Plan premiums;
- Claims and related costs under the Public Service Dental Care Plan and the Pensioners' Dental Services Plan;
- Provincial payroll taxes in respect of employees who work in Quebec, Ontario, Manitoba and Newfoundland and Labrador. The payroll tax is levied on employers in each of the provinces to help fund the respective health plans; and
- 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/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.
| Estimated 2014–15 |
Planned 2015–16 |
|
|---|---|---|
| Expenses: | ||
|
Employer's contributions to government employee benefit plans (statutory)
|
3,375,968 | 3,471,035 |
|
Public Service Health Care Plan premiums (Vote 20)
|
1,103,646 | 1,089,390 |
|
Group disability and life insurance premiums (Vote 20)
|
762,529 | 530,188 |
|
Provincial payroll taxes (Vote 20)
|
531,406 | 544,707 |
|
Public service and pensioners' dental care plans claims (Vote 20)
|
455,546 | 458,704 |
|
Public Service Pension Plan and Retirement Compensation Arrangements in respect of actuarial deficits (statutory)
|
443,000 | 443,000 |
|
Provincial health insurance plan premiums (Vote 20)
|
37,037 | 40,211 |
|
Québec Parental Insurance Plan premiums (Vote 20)
|
36,452 | 36,204 |
|
Operating expenses (Vote 20)
|
7,506 | 7,882 |
|
Pension and similar payments to former government employees (Vote 20)
|
4,481 | 5,027 |
|
Employment Insurance premiums reduction (Vote 20)
|
2,182 | 1,801 |
|
Payments for the pay equity settlement (statutory)
|
17 | 0 |
| Total expenses | 6,759,770 | 6,628,149 |
| Recoveries: | ||
|
Employer's contributions to government employee benefit plans recovered from government departments and agencies (statutory)
|
3,375,968 | 3,471,035 |
|
Employees' and pensioners' contributions to the Public Service Health Care Plan recovered from government departments and agencies (Vote 20)
|
189,078 | 221,643 |
|
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)
|
169,251 | 163,391 |
|
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)
|
81,918 | 86,718 |
| Total recoveries | 3,816,215 | 3,942,787 |
| Net expenses | 2,943,555 | 2,685,362 |
7. Comparative Information by Program
As a result of the Secretariat's new Program Alignment Architecture approved for 2015–16, comparative information for 2014–15 could not be prepared on the same basis due to significant differences in programs between the two years. The 2014–15 estimated expenses are therefore presented according to the Secretariat's Program Alignment Architecture applicable for 2014–15.
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