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Strategic Outcome: | Toward effective government policies and operations, the Privy Council Office ensures that decision making by the Prime Minister and Cabinet is well supported and the institutions of executive government are well supported and maintained. | |||
Actual Spending 2007-2008 | Alignment to Government of Canada Outcome Number Four | |||
Budgetary | Non-budgetary | Total | ||
1. Support for Cabinet decision making and the legislative agenda | 5,121 | - | 5,121 | Government Affairs |
2. Advice to the Prime Minister and ministers on issues, policies, machinery and appointments | 53,892 | - | 53,892 | |
3. Provide Cabinet with sound advice on the development, coordination and implementation of the policy agenda | 23,239 | - | 23,239 | |
4. As its head, the Clerk leads the Public Service in effectively supporting Cabinet and serving Canadians | 9,638 | - | 9,638 | |
5. Provide the Prime Minister’s Office and the offices of the portfolio ministers with financial and administrative support | 28,401 | - | 28,401 | |
6. Provide commissions of inquiry with appropriate administrative support | 17,401 | - | 17,401 | |
Total | 137,692 | - | 137,692 |
All PCO’s program activities support the Government of Canada outcome number four: “Government Affairs.” PCO plays an important, supportive role to ensure a whole-of-government approach and integrated response to issues that affect Canadians. It works across portfolio boundaries and helps other government departments and agencies meet their responsibilities, deliver on their core mandates and, ultimately, serve Canadians better.
2005-2006 Actual |
2006-2007 Actual |
2007-2008 | ||||
Main Estimates |
Planned Spending |
Total Authorities |
Actual Spending | |||
(thousands of dollars) | ||||||
Support for Cabinet decision making and the legislative agenda | 6,057 | 5,396 | 5,435 | 5,458 | 5,559 | 5,121 |
Advice to the Prime Minister and ministers on issues, policies, machinery and appointments | 65,534 | 54,894 | 59,216 | 59,516 | 62,679 | 53,892 |
Provide Cabinet with sound advice on the development, coordination and implementation of the policy agenda | 30,845 | 25,589 | 22,557 | 22,666 | 24,367 | 23,239 |
As its head, the Clerk leads the Public Service in effectively supporting Cabinet and serving Canadians | 8,719 | 8,839 | 7,183 | 7,197 | 7,757 | 9,638 |
Provide the Prime Minister’s Office and the offices of the portfolio ministers with financial and administrative support | 34,361 | 27,574 | 27,204 | 27,521 | 29,094 | 28,401 |
Provide commissions of inquiry with appropriate administrative support | 16,802 | 13,269 | 5,708 | 5,708 | 20,007 | 17,401 |
Total | 162,318 | 135,561 | 127,303 | 128,067 | 149,463 | 137,692 |
Less: Non‑respendable revenue | 1,256 | 1,581 | 850 | 850 | 1,837 | |
Plus: Cost of services received without charge | 22,427 | 18,097 | 16,928 | 16,928 | 17,489 | |
Total Departmental Spending | 183,489 | 152,077 | 127,303 | 144,145 | 165,541 | 153,344 |
Full-time Equivalents | 1,032 | 904 | 937 | 937 | 937 | 912 |
Variation between Total Main Estimates and Total Planned Spending
The increase of $0.8 million is due to:
Variation between Total Planned Spending and Total Authorities
The $21.4 million increase is due to:
Variation between Total Authorities and Total Actual Spending
The $11.8 million surplus is explained as follows:
Variation between Actual Spending 2006-2007 and Actual Spending 2007-2008
The increase of $2.1 million is mainly due to:
Offset by:
Vote or Statutory Item | Truncated Vote or Statutory Wording | 2007-2008 | |||
Main Estimates | Planned Spending | Total Authorities | Actual | ||
1 | Program expenditures | 114,162 | 114,820 | 137,270 | 125,531 |
(S) | The Prime Minister’s salary and motor car allowance | 153 | 153 | 153 | 153 |
(S) | President of the Queen’s Privy Council for Canada, Minister of Intergovernmental Affairs and Minister of Western Economic Diversification – Salary and motor car allowance | 75 | 75 | 74 | 74 |
(S) | Leader of the Government in the Senate – Salary and motor car allowance | 75 | 75 | 74 | 74 |
(S) | Ministers without Portfolio or Ministers of State – Motor car allowance | - | - | 4 | 4 |
(S) | Contributions to employee benefit plans | 12,839 | 12,944 | 11,837 | 11,837 |
(S) | Spending of proceeds from the disposal of surplus Crown assets | - | - | 51 | 19 |
Total | 127,303 | 128,067 | 149,463 | 137,692 |
For supplementary information on the department’s sources of respendable and non-respendable revenue please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
For supplementary information on the department’s User Fees, please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
For supplementary information on the department’s response to Parliamentary Committees and External Audits please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
For supplementary information on the department's Internal Audits and Evaluations, please visit: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp
The Privy Council Office follows the Treasury Board of Canada Secretariat Special Travel Authorities.
The Privy Council Office follows the Treasury Board of Canada Secretariat Travel Directive, Rates and Allowances.
Privy Council Office
Financial Statements
For The Year Ended March 31, 2008
Statement of Management Responsibility
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008, and all information contained in these statements rests with departmental management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.
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 Privy Council Office’s financial transactions. Financial information submitted to the Public Accounts of Canada and included in the Privy Council Office’s Departmental Performance Report is consistent with these financial statements.
Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable; that assets are safeguarded; and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Privy Council Office.
The financial statements of the Privy Council Office have not been audited.
Ottawa, Ontario
August 08, 2008
for the year ended March 31, 2008
Expenses (Note 4) | 2008 | 2007 |
(in thousands of dollars) | ||
Support for Cabinet decision making and the legislative agenda | 6,071 | 6,989 |
Advice to the Prime Minister and ministers on issues, policies, machinery and appointments | 59,032 | 64,806 |
Provide Cabinet with sound advice on the development, coordination and implementation of the policy agenda | 25,349 | 30,788 |
As its head, the Clerk leads the Public Service in effectively supporting Cabinet and serving Canadians | 10,830 | 7,305 |
Provide the Prime Minister’s Office and the offices of the portfolio ministers with financial and administrative support | 33,062 | 33,284 |
Provide commissions of inquiry with appropriate administrative support | 16,472 | 13,538 |
Total Expenses | 150,816 | 156,710 |
Revenues (Note 5) | ||
Support for Cabinet decision making and the legislative agenda | 2 | 1 |
Advice to the Prime Minister and ministers on issues, policies, machinery and appointments | 24 | 10 |
Provide Cabinet with sound advice on the development, coordination and implementation of the policy agenda | 9 | 4 |
As its head, the Clerk leads the Public Service in effectively supporting Cabinet and serving Canadians | 5 | 10 |
Provide the Prime Minister’s Office and the offices of the portfolio ministers with financial and administrative support | 14 | 7 |
Provide commissions of inquiry with appropriate administrative support | 2 | - |
Total Revenues | 56 | 32 |
Net Cost of Operations | 150,760 | 156,678 |
The accompanying notes form an integral part of these financial statements.
at March 31, 2008
Assets | 2008 | 2007 |
(in thousands of dollars) | ||
Financial assets | ||
Accounts receivable and advances (Note 6) | 2,437 | 6,481 |
Total financial assets | 2,437 | 6,481 |
Non-financial assets | ||
Prepaid expenses | 349 | 696 |
Tangible capital assets (Note 7) | 9,093 | 9,376 |
Total non-financial assets | 9,442 | 10,072 |
Total | 11,879 | 16,553 |
Liabilities and Equity of Canada | ||
Liabilities | ||
Accounts payable and other liabilities (Note 8) | 17,220 | 20,120 |
Vacation pay and compensatory leave | 5,244 | 7,864 |
Employee severance benefits (Note 9) | 14,300 | 14,679 |
Total liabilities | 36,764 | 42,663 |
Equity of Canada | (24,885) | (26,110) |
Total | 11,879 | 16,553 |
Contingent liabilities (Note 10)
Contractual obligations (Note 11)
The accompanying notes form an integral part of these financial statements.
at March 31, 2008
2008 | 2007 | |
(in thousands of dollars) | ||
Equity of Canada, beginning of year | (26,110) | (25,910) |
Net cost of operations | (150,760) | (156,678) |
Refund and adjustment of previous year expenditures | (1,781) | (1,548) |
Revenue not available for spending | (56) | (32) |
Services provided without charge by other government departments (Note 12) | 17,489 | 18,097 |
(135,108) | (140,161) | |
Current year appropriations used (Note 3) | 137,692 | 135,561 |
Change in net position in the Consolidated Revenue Fund (Note 3c) | (1,359) | 4,400 |
Equity of Canada, end of year | (24,885) | (26,110) |
The accompanying notes form an integral part of these financial statements.
for the year ended March 31, 2008
2008 | 2007 | |
(in thousands of dollars) | ||
Operating Activities | ||
Net cost of operations | 150,760 | 156,678 |
Non-cash items | ||
Amortization of tangible capital assets (Note 7) | (2,696) | (3,401) |
Loss on disposal of tangible capital assets | (69) | - |
Other | 209 | - |
Services provided without charge by other government departments (Note 12) | (17,489) | (18,097) |
(20,045) | (21,498) | |
Variations in Statement of Financial Position | ||
Increase (decrease) in accounts receivable and advances | (4,044) | 4,564 |
Increase (decrease) in prepaid expenses | (347) | 487 |
(Increase) decrease in liabilities: | ||
Accounts payable and other liabilities | 2,900 | (580) |
Vacation pay and compensatory leave | 2,620 | (2,536) |
Employee severance benefits | 379 | (1,784) |
1,508 | 151 | |
Cash used by operating activities | 132,223 | 135,331 |
Capital Investment Activities | ||
Acquisition of tangible capital assets (Note 7) | 1,919 | 3,337 |
Net cost of tangible capital asset transfers | - | (120) |
Work in progress | 354 | (167) |
Cash used by capital investment activities | 2,273 | 3,050 |
Net cash provided by Government of Canada | 134,496 | 138,381 |
The accompanying notes form an integral part of these financial statements.
for the year ended March 31, 2008
The Privy Council Office is a division of the Public Service of Canada as set out in column 1 of Schedule I.1 of the Financial Administration Act and reports to Parliament through the Prime Minister.
The Privy Council Office reports directly to the Prime Minister and is headed by the Clerk of the Privy Council and Secretary to the Cabinet. The Clerk is also the Head of the Public Service. The mandate of the Privy Council Office is to serve Canada and Canadians by providing the best non-partisan advice and support to the Prime Minister, ministers within the Prime Minister’s portfolio and Cabinet. PCO’s work requires close and continuous contact with other federal departments and agencies to support their ability to work effectively and to ensure overall consultation and coordination.
Commissions of inquiry established under the Inquiries Act are designated as departments under the Financial Administration Act and the Prime Minister is designated as the “appropriate Minister” under that same Act. PCO provides administrative and financial management support to commissions. In 2007-08, the same commissions as in 2006-07 were supported by PCO: the Commission of Inquiry into the Actions of Canadian Officials in Relation to Maher Arar, the Commission of Inquiry into the Investigation of the Bombing of Air India Flight 182, and the Commission of Inquiry into the Actions of Canadian Officials in Relation to Abdullah Almalki, Ahmad Abou-Elmaati and Muayyed Nureddin.
2. Significant Accounting Policies
The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector. Significant accounting policies are as follows:
Accounts receivable and advances are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense 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.
Tangible capital assets having an initial cost of $5,000 or more are recorded at their acquisition cost. The Privy Council Office does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value. Work in progress is only amortized when the related projects are completed and their amortization is based on the estimated useful life of the asset. Amortization of capital assets is done on a straight‑line basis over the estimated useful life of the capital asset as follows:
Asset Class | Amortization Period |
Machinery and equipment | 5 to 15 years |
Informatics hardware | 3 to 5 years |
Informatics software | 3 to 5 years |
Other equipment | 10 to 15 years |
Motor vehicles | 3 to 10 years |
3. Parliamentary Appropriations
The Privy Council Office receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the Privy Council Office 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 appropriations used:
2008 | 2007 | ||
(in thousands of dollars) | |||
Net cost of operations | 150,760 | 156,678 | |
Adjustments for items affecting net cost of operations but not affecting appropriations: | |||
Add (less): | |||
Amortization of tangible capital assets | (2,696) | (3,401) | |
Loss on disposal of tangible capital assets | (69) | - | |
Services provided without charge by other government departments (Note 12) | (17,489) | (18,097) | |
Prepaid expenses | 347 | 696 | |
Vacation pay and compensatory leave | 2,620 | (2,536) | |
Employee severance benefits | 379 | (1,784) | |
Accounts payable and other liabilities | - | 15 | |
Refund and adjustment of previous year expenditures | 1,781 | 1,548 | |
Revenue not available for spending | 56 | 32 | |
Other | 84 | (927) | |
(14,987) | (24,454) | ||
Adjustments for items not affecting net cost of operations but affecting appropriations: | |||
Add: | |||
Acquisition of tangible capital assets | 1,919 | 3,337 | |
Current year appropriations used | 137,692 | 135,561 |
b) Appropriations provided and used:
2008 | 2007 | ||
(in thousands of dollars) | |||
Vote - Operating expenditures | 137,271 | 135,698 | |
Statutory amounts | 12,193 | 12,661 | |
Less: | |||
Appropriations available for future years | (32) | (18) | |
Lapsed appropriations: Operating | (11,740) | (12,780) | |
Current year appropriations used | 137,692 | 135,561 |
c) Reconciliation of net cash provided by government to current year appropriations used:
2008 | 2007 | ||
(in thousands of dollars) | |||
Net cash provided by government | 134,496 | 138,381 | |
Refund and adjustment of previous year expenditures | 1,781 | 1,548 | |
Revenue not available for spending | 56 | 32 | |
136,333 | 139,961 | ||
Change in net position in the Consolidated Revenue Fund | |||
Variation in accounts receivable and advances | 4,059 | (4,561) | |
Variation in prepaid expenses | - | 209 | |
Variation in accounts payable and other liabilities | (2,701) | 596 | |
Other | 1 | (644) | |
1,359 | (4,400) | ||
Current year appropriations used | 137,692 | 135,561 |
The following table presents details of expenses by category:
2008 | 2007 | ||
(in thousands of dollars) | |||
Salaries and employee benefits | 92,011 | 96,900 | |
Professional and special services | 23,489 | 20,926 | |
Accommodation | 12,647 | 13,244 | |
Transportation and telecommunications | 6,224 | 6,578 | |
Acquisition of machinery and equipment | 5,479 | 5,879 | |
Information | 2,784 | 3,886 | |
Amortization of tangible capital assets (Note 7) | 2,696 | 3,401 | |
Utilities, materials and equipment | 1,588 | 1,617 | |
Transfer payments | 1,389 | 408 | |
Rental | 1,137 | 703 | |
Other | 681 | 485 | |
Purchased repair and maintenance | 622 | 2,683 | |
Loss on disposal of tangible capital assets | 69 | - | |
Total | 150,816 | 156,710 |
The following table presents details of revenues by category:
2008 | 2007 | ||
(in thousands of dollars) | |||
Gain on disposal of tangible assets | 32 | 17 | |
Regulatory fees | 5 | 10 | |
Miscellaneous revenues | 4 | 4 | |
Gain on foreign exchange | 15 | 1 | |
Total | 56 | 32 |
6. Accounts Receivable and Advances
The following table presents details of accounts receivable and advances:
2008 | 2007 | ||
(in thousands of dollars) | |||
Receivables from other federal government departments and agencies | 1,917 | 6,057 | |
Receivables from external parties | 544 | 465 | |
Employee advances | 25 | 23 | |
Subtotal | 2,486 | 6,545 | |
Less: Allowance for doubtful accounts on external receivables | 49 | 64 | |
Total | 2,437 | 6,481 |
(in thousands of dollars) | Cost | Accumulated Amortization | |||||||||
Capital Asset Class | Opening Balance | Acquisi-tions1 | Disposal and write-offs 2 | Closing Balance | Opening Balance | Amortiza-tion 3 | Disposal and write-offs 2 | Closing Balance | Net Book Value 2008 4 | Net Book Value 2007 | |
Machinery and equipment | 40 | - | - | 40 | 28 | 1 | - | 29 | 11 | 12 | |
Informatics hardware | 11,242 | 1,230 | (1,066) | 11,406 | 7,998 | 1,403 | (1,058) | 8,343 | 3,063 | 3,244 | |
Informatics software | 4,340 | 324 | (99) | 4,565 | 3,333 | 512 | - | 3,845 | 720 | 1,007 | |
Other equipment | 7,344 | 1,209 | (982) | 7,571 | 2,568 | 724 | (131) | 3,161 | 4,410 | 4,776 | |
Motor vehicles | 415 | 181 | (79) | 517 | 272 | 56 | (71) | 257 | 260 | 143 | |
Work-in-progress - software | 14 | 319 | - | 333 | - | - | - | - | 333 | 14 | |
Work-in-progress - other | 180 | 116 | - | 296 | - | - | - | - | 296 | 180 | |
23,575 | 3,379 | (2,226) | 24,728 | 14,199 | 2,696 | (1,260) | 15,635 | 9,093 | 9,376 |
1. Total acquisitions of $3,379,000 comprise regular acquisitions of capital assets ($1,919,000), creation of new work in progress ($354,000) and adjustments ($1,106,000).
2. Net disposals and write-offs of -$966,000 comprise regular dispositions of capital assets (-$468,000), accumulated depreciation ($399,000) and adjustments (-$897,000).
3. Amortization expense for the year ended March 31, 2008, is $2,696,000 (2007 - $3,401,000).
4. Due to the implementation of a new financial system in 2006-07, some transactions were not processed correctly and as a result an immaterial adjustment of $209,000 was process in 2007-08.
8. Accounts Payable and Other Liabilities
The following table presents details of accounts payable and other liabilities:
2008 | 2007 | ||
(in thousands of dollars) | |||
Payables to external parties | 12,845 | 12,890 | |
Payables to other federal government departments and agencies | 3,258 | 5,960 | |
Other liabilities | 966 | 920 | |
Contingent liabilities (Note 10) | 151 | 350 | |
Total | 17,220 | 20,120 |
Both the employees and the department contribute to the cost of the Public Service Pension Plan. The 2007-08 expense amounts to $10,723,836 ($9,079,000 in 2006-07), which represents approximately 2.1 times (2.2 in 2006-07) the contributions by employee.
The Privy Council Office’s responsibility with regard to the plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the plan’s sponsor.
2008 | 2007 | ||
(in thousands of dollars) | |||
Accrued benefits obligation, beginning of year | 14,679 | 12,895 | |
Expense for the year | 345 | 2,923 | |
Benefits paid during the year | (724) | (1,139) | |
Accrued benefits obligation, end of year | 14,300 | 14,679 |
Claims and litigations
Claims have been made against the Privy Council Office in the normal course of operations. Legal proceedings for claims totaling approximately $151,028 were still pending at March 31, 2008 ($350,000 in 2006-2007). Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements.
The nature of the Privy Council Office’s activities can result in large multi-year contracts and obligations whereby the Privy Council Office will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
2009 | 2010 | 2011 | 2012 | 2013 and thereafter | Total | |
(in thousands of dollars) | ||||||
Privy Council Office | ||||||
Transport and telecommunications | 272 | 4 | - | - | - | 276 |
Information | 827 | - | - | - | - | 827 |
Professional and special services | 3,246 | 68 | - | - | - | 3,314 |
Rental | 818 | 546 | 413 | 314 | 183 | 2,274 |
Purchased repair and maintenance | 111 | 59 | 58 | - | - | 228 |
Utilities, materials and equipment | 45 | - | - | - | - | 45 |
Acquisition of machinery and equipment | 81 | - | - | - | - | 81 |
5,400 | 677 | 471 | 314 | 183 | 7,045 | |
Commissions of Inquiry | ||||||
Transport and telecommunications | 16 | - | - | - | - | 16 |
Information | 316 | - | - | - | - | 316 |
Professional and special services | 2,370 | - | - | - | - | 2,370 |
Rental | 272 | 22 | - | - | - | 294 |
Utilities, materials and equipment | 2 | - | - | - | - | 2 |
Transfer payments | 64 | - | - | - | - | 64 |
3,040 | 22 | 3,062 | ||||
Total | 8,440 | 699 | 471 | 314 | 183 | 10,107 |
12. Related Party Transactions
The Privy Council Office is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The Privy Council Office enters into transactions with these entities in the normal course of business and on normal trade terms.
Services provided without charge: During the year, the Privy Council Office received, without charge from other government departments, accommodation, legal fees, the employer’s contribution to the health and dental insurance plans and worker’s compensation coverage. These services without charge have been recognized in the Privy Council Office’s Statement of Operations as follows:
2008 | 2007 | ||
(in thousands of dollars) | |||
Accommodation | 10,849 | 10,847 | |
Employer’s contribution to the health and dental insurance plans | 6,160 | 6,007 | |
Legal services | 469 | 1,232 | |
Worker’s compensation coverage | 11 | 11 | |
Total | 17,489 | 18,097 |
The government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, and audit services provided by the Office of the Auditor General, are not included as an expense in the Privy Council Office’s Statement of Operations.