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Supplementary Information (Tables)
Program Activity |
Actual 2007–08 |
Actual 2008–09 |
2009–10 | |||
---|---|---|---|---|---|---|
Main Estimates |
Planned Revenue |
Total Authorities |
Actual | |||
Management Policy Development and Oversight |
||||||
Revenue related to the administration of the Public Service Superannuation Act1 | 2,681 | 3,182 | 3,980 | 3,980 | 5,853 | 3,913 |
Government–Wide Funds and Public Service Employer Payments |
||||||
Revenue related to public service insurance2 | 280,817 | 333,858 | 302,200 | 302,200 | 361,321 | 361,321 |
Total Respendable Revenue | 283,498 | 337,040 | 306,180 | 306,180 | 367,174 | 365,234 |
1. Respendable revenue is received to cover salaries and operating costs from public service superannuation with respect to chargeable costs associated with administering the Public Service Superannuation Act.
2. Respendable revenue is received to cover health care insurance plans' costs from revolving funds and from departments and agencies that pay for employee benefit plans from a non–statutory appropriation. This account is also used to record pensioners' share of Pensioners' Dental Services Plan contributions.
Program Activity |
Actual 2007–08 |
Actual 2008–09 |
2009–10 | |||
---|---|---|---|---|---|---|
Main Estimates |
Planned Revenue |
Total Authorities |
Actual | |||
Revenue from parking fees1 | 11,466 | 11,643 | 11,742 | 11,595 | 11,595 | |
External revenue from access to information | 1 | 1 | 1 | 1 | ||
Revenue related to the administration of the Public Service Superannuation Act2 | 596 | 854 | 899 | 860 | 860 | |
Refunds of previous year's expenditure | 706 | 744 | 384 | 384 | ||
Disciplinary penalties | 24 | 33 | 63 | 63 | ||
Proceeds from the disposal of surplus Crown assets | 9 | 7 | 1 | 1 | ||
Other | 229 | 34 | 15 | 15 | ||
Total Non–Respendable Revenue | 13,031 | 13,316 | – | 12,641 | 12,919 | 12,919 |
1. The revenue represents parking fees that are collected from public servants in government–owned or government–leased facilities. This revenue is deposited directly into the Consolidated Revenue Fund and cannot be used to offset operating expenditures.
2. The non–respendable revenue represents the portion received from public service superannuation with respect to chargeable costs associated with administering the Public Service Superannuation Act and covers the costs of employee benefit plans, health plans, and accommodation.
User Fee: Fees charged for processing access to information requests filed under the Access to Information Act (ATIA)
Fee Type: Other products and services (O)
Fee-setting Authority: ATIA
Date Last Modified: 2005
Performance Standards: Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension is to be sent within 30 days after receipt of request.
Performance Results: Statutory deadlines were met 98 per cent of the time.
2009–10 | Planning Years | ||||
---|---|---|---|---|---|
Forecast Revenue | Actual Revenue | Full Cost | Fiscal Year | Forecast Revenue | Estimated Full Cost |
$2.2 | $0.935 | $582.0 | 2010–11 | $1.5 | $600.0 |
2011–12 | $1.7 | $720.0 | |||
2012–13 | $1.9 | $1,036.0 |
Other Information:
It is the Secretariat's practice to waive fees where the total owing per request amounts to less than $25.00, or when the request has not been answered within the legislated time frames and additional costs would apply, or where there is a public interest in the disclosure. The number of times fees were waived in 2009–10 was due to the informal processing of requests. In order to reduce costs and increase efficiency, documents are also released occasionally on CD-ROM, which means that no reproduction fees are charged to the applicant.
External Fee | Service Standard | Performance Results | Stakeholder Consultation |
---|---|---|---|
Fees charged for the processing of access to information requests under the Access to Information Act (ATIA). | Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension is to be sent within 30 days after receipt of the request. | Statutory deadlines met 98% of the time. | The service standard is established by the ATIA and related Regulations. Consultations with stakeholders were undertaken for amendments in 1986, 1992 and 2005. |
Other Information:
There was one new complaint dealing with fees filed with the Office of the Information Commissioner of Canada for 2009–10; the complaint was found to be not substantiated.
Has the department incorporated environmental performance considerations in its procurement decision-making processes?
Yes |
Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:
The Secretariat's Sustainable Development Working Group meets regularly to review management of the greening of the Secretariat's operations in such areas as procurement, fleet accommodations, assets, energy conservation, information technology, and paper consumption and recycling.
The Secretariat incorporated the ability to track green procurement through its financial management system (Materiel Management Module).
The Secretariat is currently undergoing an analysis of its acquisition card program in order to maximize the benefits from a green procurement perspective. The results of this analysis will have a direct impact on its green procurement purchases. All acquisition card holders will receive a training package from the coordinator upon receipt of the card. This includes a document of considerations for green procurement purchases.
Results achieved:
Contributions to facilitate government-wide implementation of green procurement:
The Secretariat collaborates with Public Works and Government Services Canada and Environment Canada in the delivery of the Secretariat's responsibilities under Section 8 of the Policy on Green Procurement. This includes developing guidance related to green procurement, contributing to the development of training courses, and providing advice on performance measurement and reporting. The Secretariat also relies on the expertise of Natural Resources Canada in implementing the policy.
Has the department established green procurement targets?
Yes |
Summary of green procurement targets:
(1) Introduce green procurement training for 60 per cent of acquisition card holders and ensure that new materiel managers also receive green procurement training
Benefits—Better awareness and application of the Policy on Green Procurement and improved tracking of green procurement performance
(2) Continue to ensure the purchase of green office furniture
Benefits—Increased purchase of better quality furniture, decrease in long-term costs, and improved air quality
(3) Evaluate the multi-function document manager pilot program
Benefits—Depending on the results of the evaluation, improved air quality as well as cost savings from the decrease in paper and energy use and the more efficient use of resources
(4) Update the recycling program to increase the landfill waste diversion rate to 75 per cent
Benefits—Improved waste diversion rate in the facilities occupied by the Department of Finance Canada and the Secretariat
(5) Continue and possibly expand the paper towel composting program
Benefits—Improved waste diversion rate in the facilities occupied by the Department of Finance Canada and the Secretariat
(6) Ensure all vehicles purchased meet the Treasury Board Directive on Fleet Management: Executive Vehicles
Benefits—Improved fuel efficiency and reduced greenhouse gas (GHG) emissions
(7) Ninety per cent of gasoline purchased will be ethanol-blended, where available
Benefits—Reduced dependence on fossil-based fuels and reduced GHG emissions
(8) Introduce green and defensive driver training for new fleet drivers
Benefits—Improved fuel efficiency and reduced GHG emissions
(9) Purchase lighting user controls to reduce GHG emissions by 5 per cent at L'Esplanade Laurier
Benefits—Decreased energy consumption and reduced GHG emissions
(10) Develop a shared environmental management system
Benefits—Compliance, due diligence, and reduced environmental risk
(11) Increase Green Citizenship Network membership by 25 per cent and improve opportunities for employee participation, including in green procurement programming
Benefits—Decreased consumption of resources through awareness and program delivery
Results achieved:
The Secretariat's green procurement targets were closely aligned with the Secretariat's former Sustainable Development Strategy, which covered the period from 2007 to the end of 2009. Most of these targets have been fulfilled and reported in the Secretariat's 2008–09 DPR under Table 3: Sustainable Development Strategy. Continued tracking of the targets over 2009–10 proved challenging because they had been developed under the former organizational structure where the Department of Finance Canada and the Secretariat shared corporate services, including procurement functions.
Early in 2009, the Secretariat underwent organizational changes that involved the integration of employees from the Department of Finance Canada into the Secretariat to provide dedicated services and a new Corporate Services Sector. In addition, the Office of the Chief Human Resources Officer was created from the former Canada Public Service Agency and selected Secretariat functions.
As a result of these changes, the Secretariat is lacking comprehensive data to report on all targets listed in the Green Procurement Table for the period 2009–10. However, the Secretariat has made significant efforts to advance its green procurement up to and including the relevant reporting period. Specifically, all acquisition card holders now receive a training package that includes a document of consideration for green procurement purchases. This is a step to increase awareness and change previous procurement practices. The training is consistent with the Policy on Green Procurement.
In addition, general awareness of greening operations is strengthened through the continued use of the Green Citizenship Network. The Secretariat has also met its green procurement target to ensure that all purchased vehicles meet the Treasury Board Directive on Fleet Management: Executive Vehicles. The Secretariat's recycling has been improved through the introduction of paper towel recycling at L'Esplanade Laurier. The Secretariat also purchased and installed more centralized printers to decrease paper consumption. All paper purchases are green as the Secretariat only purchases recycled paper.
Work initiated prior to 2009–10 to modernize lighting continued throughout the fiscal year to make the lighting at L'Esplanade Laurier more efficient and to minimize energy consumption and reduce GHG emissions (new switches and motion censors have been installed). Desktop computers are also set to shut down after a time period of not being in use.
In preparation for the implementation of the Federal Sustainable Development Act, the Secretariat is also directing its efforts toward establishing mechanisms to effectively track and report on new green procurement targets.Standing Committee on Government Operations and Estimates: The Right Pay for Valuable Employees
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee considered the problems in the federal government's compensation system from the perspective of the public interest. Recommendations were made to the government to address the classification of compensation advisors, the upgrading of the compensation system's technological infrastructure, and the turnover rate in the public service. | The government has undertaken or will undertake actions with respect to most of the recommendations to ensure equity and timeliness of compensation for all employees in the federal public sector. The government introduced the Public Sector Equitable Compensation Act as part of the Budget Implementation Act, 2009 and is also committed to developing an approach to modernize technology and processes to simplify the administration of pay for the Government of Canada. The 2009–10 Public Service Renewal Action Plan emphasized linking human resources needs with organizational business needs, one outcome of which would be more stability and fewer turnovers in the public service. | Government Response to the Second Report of the Standing Committee on Government Operations and Estimates (Third Report of the Committee presented to the House during the Second Session of the 39th Parliament) (Presented to the House on September 14, 2009) |
Standing Committee on the Status of Women: An Analysis of the Effects of the Public Sector Equitable Compensation Act
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that the government repeal the Public Sector Equitable Compensation Act and replace it with a proactive federal pay equity law, as recommended by the Pay Equity Task Force (Task Force) in its 2004 report, Pay Equity: A New Approach to a Fundamental Right. The Conservative Party members of the Committee issued a Dissenting Opinion to the report. These members have many reservations about the recommendation put forward and are concerned that the draft report was written and discussed before the Committee had the opportunity to hear from all witnesses. | The Government Response indicates that the Government of Canada respects the principle of equal pay for work of equal value and that the government strongly believes the Public Sector Equitable Compensation Act is the best means to proactively apply this principle to ensure that federal public sector employees receive equitable compensation. The Act makes pay equity an integral part of collective bargaining and wage-setting in the federal public sector and ensures that parties with responsibilities in wage-setting are accountable for achieving equal pay for work of equal value and that employees receive equitable compensation from the moment wages are set. |
Government Response: Seventh Report of the Standing Committee on the Status of Women, An Analysis of the Effects of the Public Sector Equitable Compensation Act (Presented to the House on October 7, 2009) |
Standing Committee on the Status of Women: Towards Gender Responsive Budgeting: Rising to the Challenge of Achieving Gender Equality
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that the other central agencies, namely the Privy Council Office and the Secretariat, establish specialized units on gender analysis. The Committee recommended that senior government officials, namely deputy ministers, assistant deputy ministers, and director generals, be held accountable for their implementation of a true gender-based analysis in all government departments by tying their performance assessment, and thereby pay increases and promotions, to the implementation of gender-based analysis, including the Clerk of the Privy Council, the Secretary of the Treasury Board, and the Deputy Minister of Finance. The Committee recommended that the Secretariat develop a policy requiring departments to report on gender-based analysis through the Reports on Plans and Priorities and the Departmental Performance Reports by January 2009. |
Since 2005, the Government of Canada has been working on the integration of gender‑based analysis into instruments of authority, e.g., Treasury Board submissions and the Management, Resources and Results Structure. There is now a complete inventory of all government programs, which can be searched to identify programs by subject including those explicitly identifying gender issues. Status of Women Canada, with support from the Secretariat and the Privy Council Office, has committed to assessing the performance of gender‑based analysis across the federal government and the effectiveness of gender-based analysis practices on a yearly basis to ensure that government policy and program development and budgets achieve gender equality goals and are gender-responsive. | Government Response: Second Report of the Standing Committee on the Status of Women (recommendations contained in the 11th Report of the Committee presented to the House during the Second Session of the 39th
Parliament) (Presented to the House on August 19, 2009) |
Standing Committee on Accounts: Public Accounts of Canada 2008
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that: i) the Canada Revenue Agency provide a plan to improve its methodology to calculate the allowance for doubtful tax receivables; and ii) the Canada Border Services Agency provide a detailed plan on how it will improve its tax revenue accounting systems. The Committee also recommended that the Comptroller General of Canada ensure that federal government departments have adequate internal control systems to prevent losses of public money and property and plans in place for recovering losses in the case of criminal offences; and that the government provide a firm timeline for implementing accrual appropriations. |
i) The Canada Revenue Agency developed and implemented a new methodology to estimate the allowance for doubtful accounts based on the age of tax accounts receivable during the 2007–08 year. ii) The Canada Border Services Agency has developed a project to improve its accounting systems. The Treasury Board submission went to the Board in June 2010. Several initiatives will result in improved internal controls over financial reporting. For example, policies on internal control, governance and internal audit have been approved and will now result in strengthened controls over financial reporting, oversight and governance. Significant progress has been made on the development of a plan for the staged approach to the implementation of accrual budgeting and appropriations. |
Government Response to the Sixth Report of the Standing Committee on Public Accounts: Public Accounts of Canada 2008 (Presented to the House on August 19, 2009) |
Standing Committee on Public Accounts: Governance of Small Federal Entities
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that the Secretariat provide a progress report followed by an action plan on how it intends to implement the recommendations contained in Chapter 2 of the Auditor General's December 2008 Report, including specific elements in its action plan to show how it will reduce the reporting burden on small federal entities and what issues it will address with respect to administrative shared services in small federal entities. | The management response to this chapter includes a full description of measures taken or intended with respect to each of the recommendations, including a list of specific measures that have been undertaken to reduce reporting requirements on departments, including small entities. | Government Response to the 14th Report of the Standing Committee on Public Accounts, Governance of Small Federal Entities, Chapter 2 of the December 2008 Report of the Auditor General of Canada (Presented to the House on October 7, 2009) |
Standing Committee on Public Accounts: A Study of Federal Transfers to Provinces and Territories
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that the Government of Canada, when announcing transfers to provinces and territories, clearly explain whether there are ongoing conditions for the use of the funds and, if not, explain why not; and that when designing future trust agreements, to ensure that mechanisms are in place to verify results achieved. | The government makes every effort to ensure that the purpose, objectives and conditions associated with each transfer are clearly communicated. The government has established clear and precise eligibility conditions that must be met before a funding agreement is established and the funds transferred. For example, in the transfer of funds by individual federal
departments, conditions are explicitly stated in agreements between the federal government and provincial or territorial governments, and can include financial and compliance audits, progress reports, program evaluation, and/or public acknowledgement of federal support for the program. To ensure that trust arrangements are clear and transparent, the government established new accountability mechanisms through a political commitment and public accountability approach. Actions to enhance public accountability have been taken through the new Treasury Board Policy on Transfer Payments and its supporting directive. |
Government Response to the 11th Report of the Standing Committee on Public Accounts: "Chapter 1, A Study of Federal Transfers to Provinces and Territories of the December 2008 Report of the Auditor General of Canada" (Presented to the House on September 28, 2009) |
Standing Committee on on Public Accounts: Management of Fees in Selected Departments and Agencies
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee made six recommendations: (1) The Committee recommended that the Secretariat develop and present to the Treasury Board a comprehensive policy on the management of fees; and report progress on this initiative to the Committee by September 30, 2009. (2) The Committee recommended that the Treasury Board amend the Policy on Service Standards for External Fees to require departments to publicly report annually on the full costs, revenues, service standards, and performance results for all external fees; and that departments be required to regularly carry out and report on public consultations with those affected by fees. (3) The Committee recommended that the Secretariat clarify the method of comparing fee revenues to associated costs when updating its guidance on factors to consider in determining the amount of a fee; and that the Secretariat report progress on this initiative to the Committee by September 30, 2009. (4) The Committee recommended that the Comptroller General work with departments to ensure that they are accurately calculating their costs associated with fees and report progress on this initiative by September 30, 2009. (5) The Committee recommended that Secretariat provide a list of all fees that are set by contract by September 30, 2009. (6) Finally, the Committee recommended that the Secretariat clarify the review and reporting requirement for fees set by contract by September 30, 2009. |
As per the recommendations of the Committee, the Secretariat tabled a response to all six recommendations on September 14, 2009. A summary of each of the six commitments follows: (1) The government completed an examination of the available guidance and policies relating to the practices supporting user fee management. (2) Further to the examination, the development of a comprehensive policy on user fee management will be initiated in 2010–11. (3) In May 2009, the Secretariat released the Guide to Establishing the Level of a Cost-Based User Fee or Regulatory Charge, which provides a consistent approach for departments when establishing an appropriate fee level. (4) In March 2008, the Secretariat released the Guide to Costing and continues to work with departments to promote its use in user fee and other financial management settings. (5) Given that fees set by contract are not subject to the reporting provisions of either the User Fees Act or the Policy on Service Standards for External Fees, the government initiated a plan to gather information on fees set by contract from individual departments. The government provided the compiled information to the Committee by December 31, 2009, as stated in the government's response. (6) The development of the new comprehensive policy will include within its scope, practices and reporting related to fees set by contract. |
Government Response to the Tenth Report of the Standing Committee on Public Accounts, "Chapter 1, Management of Fees in Selected Departments and Agencies of the May 2008 Report of the Auditor General of Canada" (Presented to the House on September 14, 2009) |
Standing Committee on Public Accounts: Requested information on the progress of government action on 13 recommendations contained in the following reports:
Administration of the RCMP's Pension and Insurance Plans (Adopted by the Committee on December 6, 2007; presented to the House on December 10, 2007)
The Expenditure Management System at the Government Centre and the Expenditure Management System in Departments (Adopted by the Committee on February 12, 2008; presented to the House on February 25, 2008)
Protection of Public Assets - Office of the Correctional Investigator (Adopted by the Committee on February 12, 2008; presented to the House on February 25, 2008)
Large Information Technology Projects (Adopted by the Committee on February 14, 2008; presented to the House on February 25, 2008)
Passports Services - Passport Canada (Adopted by the Committee on February 28, 2008; presented to the House on March 5, 2008)
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Standing Committee on Public Accounts requested information on the progress of government action on 13 recommendations contained in the 2nd, 4th, 5th, 7th and 9th reports of the Standing Committee on Public Accounts, presented to the House of Commons during the 2nd Session of the 39th Parliament. | The Secretariat provided an update on the actions taken to the commitments made to all 13 recommendations contained in the following Government Responses: Second Report of the Standing Committee on Public Accounts, "Restoring the Honour of the Royal Canadian Mounted Police: Addressing Problems in the Administration of the RCMP's Pension and Insurance Plans" (Presented to the House on April 7, 2008) Fourth Report of the Standing Committee on Public Accounts, "The Expenditure Management System at the Government Centre and the Expenditure Management System in Departments" (Presented to the House on July 16, 2008) Fifth Report of the Standing Committee on Public Accounts, "Protection of Public Assets: Office of the Correctional Investigator" (Presented to the House on July 16, 2008) Seventh Report of the Standing Committee on Public Accounts, "Large Information Technology Projects" (Presented to the House on July 16, 2008) Ninth Report of the Standing Committee of Public Accounts, "Passports Services B Passport Canada" (Presented to the House on June 6, 2008) |
Progress report received from the Secretariat in October 2009 relating to the following studies: Chapter 9, Pension and Insurance Administration - Royal Canadian Mounted Police of the November 2006 Report of the Auditor General of Canada (39th Parliament, 2nd Session) Chapter 1, Expenditure Management System at the Government Centre and Chapter 2 Expenditure Management System in Departments of the November 2006 Report of the Auditor General of Canada (39th Parliament, 2nd Session) Chapter 11, Protection of Public Assets - Office of the Correctional Investigator of the November 2006 Report of the Auditor General of Canada (39th Parliament, 2nd Session) Chapter 3, Large Information Technology Projects of the November 2006 Report of the Auditor General of Canada (39th Parliament, 2nd Session) Chapter 5, Passports Services - Passport Canada of February 2007 Report of the Auditor General of Canada (39th Parliament, 2nd Session) |
Standing Committee on Public Accounts: Financial Management and Control - National Defence
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
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The Committee recommended that the Treasury Board, in consultation with the Department of Finance Canada, consider raising the limit on the amount that National Defence can carry forward from one fiscal year to another. | The Government accepts this recommendation. The Department of Finance Canada and the Secretariat are reviewing National Defence's current carry-forward authority. The Secretariat will report back to the Committee if any changes are made to the current authority following this review. | Government Response to the Report of the Standing Committee on Public Accounts , Chapter 5, Financial Management and Control – National Defence of the Spring 2009 Report of the Auditor General of Canada (20th Report
of the Standing Committee on Public Accounts) (Presented to the House on March 31, 2010) |
Standing Committee on Public Accounts: Managing the Delivery of Legal Services to Government - Department of Justice Canada
Summary of Report | Discussion of progress made to address recommendations | Link to the Secretariat's response |
---|---|---|
The Committee recommended that the Secretariat study the feasibility of reporting the Government of Canada's total costs for legal services. | The Secretariat has reviewed the existing reporting of the costs of legal services to Parliament and the possibility of the future use of the Management, Resources and Results Structure to further capture the costs of legal services. The Public Accounts of Canada 2007 and the Department of Justice's Departmental Performance Report provide details on the majority of these costs. | Government Response: Chapter 5, Managing the Delivery of Legal Services to Government – Department of Justice Canada of the May 2007 Report of the Auditor General of Canada, Fourth Report of the Standing Committee on Public Accounts (recommendations contained in the 17th Report of the Committee presented to the House during the Second Session of the 39th Parliament) (Presented to the House on June 19, 2009) |
Government-wide audit of executive appointments by the Public Service Commission of Canada (October, 2008)
The audit[1] focused on executive appointments made within the first year of implementing the Public Service Employment Act, from January to December 2006, and included 100 per cent of appointment processes of executives at levels four and five (which includes assistant secretaries) and 50 per cent of executives at levels one to three (which includes directors, executive directors and directors general).
The Secretariat did not have any significant issues, and a formal response was not required.
[1] The Secretariat's results did not include the Office of the Chief Human Resources Officer as the audit was conducted prior to the reorganization.
Name of Internal Audit | Audit Type | Status | Completion Date |
---|---|---|---|
Audit of the Management of Treasury Board Vote 35 | Assurance | Completed | November 2009 |
Audit of Treasury Board of Canada Secretariat Governance Framework | Assurance | Completed | February 2010 |
Audit of Account Verification | Assurance | Completed | April 2010 |
Audit of the Management of the Disability Insurance Plan | Assurance | In progress | June 2010 |
Name of Evaluation | Program Activity | Program Type | Status | Completion Date |
---|---|---|---|---|
Five-Year Evaluation of the Management Accountability Framework | Management Policy Development and Oversight | Summative | Completed | November 2009 |
Evaluation of the Treasury Board Submission Process | Expenditure Management and Financial Oversight; and Management Policy Development and Oversight | Summative | Completed | March 2010 |
Evaluation of the Cabinet Directive on Streamlining Regulation | Regulatory Management | Formative | In progress | July 2010 |
Evaluation of the Centre of Regulatory Expertise | Regulatory Management | Formative | In progress | July 2010 |
Evaluation of pilot project on Non-lapsing Capital Appropriations | Real Property and Materiel Management | Formative | In progress | July 2010 |
Evaluation of the PSMA Strategic Investment Framework | Former Canada Public Service Agency | Summative | In progress | September 2010 |
Evaluation of Policy on Internal Audit | Internal Audit Policy | Summative | Planned | March 2011 |
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2010, and all information contained in these statements rests with the management of the Treasury Board Secretariat. 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 Secretariat's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Secretariat's Departmental Performance Report is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting 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 the Secretariat, and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.
An assessment for the year ended March 31, 2010, was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the attached annex.
The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an on-going process to assess key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The system of internal control is augmented by Internal Audit, which conducts periodic audits and reviews of different areas of the Secretariat's operations. In addition, the Chief Audit Executive has free access to the Audit Committee, which provides advice on management's responsibilities for maintaining adequate control systems and the quality of financial reporting. The Committee undertakes a review of the financial statements, including all significant accounting estimates and judgments therein, and advises the Secretariat on any apparent material concerns.
The financial statements of the Treasury Board of Canada Secretariat have not been audited.
2010 Planned Results |
2010 | 2009 | |
---|---|---|---|
Expenses (Note 4) | |||
Government-Wide Funds and Public Service Employer Payments |
2,112,764 | 2,067,613 | 1,743,227 |
Management Policy Development and Oversight |
126,179 | 159,056 | 120,253 |
Expenditure Management and Financial Oversight |
41,856 | 40,054 | 37,009 |
Internal Services | 72,660 | 100,863 | 71,110 |
Total Expenses | 2,353,459 | 2,367,586 | 1,971,599 |
Revenues (Note 5) | |||
Government-Wide Funds and Public Service Employer Payments |
11,762 | 11,667 | 11,697 |
Management Policy Development and Oversight |
4,879 | 4,772 | 4,036 |
Expenditure Management and Financial Oversight |
- | - | - |
Internal Services | - | 8 | 20 |
Total Revenues | 16,641 | 16,447 | 15,753 |
Net Cost of Operations | 2,336,818 | 2,351,139 | 1,955,846 |
The accompanying notes form an integral part of these financial statements.
2010 | 2009 | |
---|---|---|
Assets | ||
Financial assets | ||
Accounts receivable and advances (Note 6) | 659,454 | 230,049 |
Non-financial assets | ||
Prepaid expenses | 64 | - |
Tangible capital assets (Note 7) | 14,722 | 13,126 |
Total Assets | 674,240 | 243,175 |
Liabilities | ||
Accounts payable and accrued liabilities (Note 8) | 566,775 | 439,214 |
Vacation pay and compensatory leave | 10,137 | 6,547 |
Employee severance benefits (Note 9) | 36,126 | 28,888 |
613,038 | 474,649 | |
Equity of Canada | 61,202 | (231,474) |
Total Liabilities and Equity | 674,240 | 243,175 |
Contingent liabilities (Note 10) Contractual obligations (Note 11) |
The accompanying notes form an integral part of these financial statements.
2010 | 2009 | |
---|---|---|
Equity of Canada, beginning of year | (231,474) | (356,265) |
Net cost of operations | (2,351,139) | (1,955,846) |
Current year appropriations used (Note 3) | 2,341,557 | 1,959,625 |
Revenue not available for spending | (12,534) | (12,571) |
Change in net position in the Consolidated Revenue Fund
(Note 3) |
311,070 | 116,365 |
Services received without charge from other government departments (Note 12) |
23,839 | 17,218 |
Transferred from Public Service Human Resource Management Agency of Canada, effective April 1, 2009 (note 13) |
(20,117) | - |
Equity of Canada, end of year | 61,202 | (231,474) |
The accompanying notes form an integral part of these financial statements.
2010 | 2009 | |
---|---|---|
Operating activities | ||
Net cost of operations | 2,351,139 | 1,955,846 |
Non-cash items: | ||
Amortization of tangible capital assets | (3,341) | (1,225) |
Gain on disposal of tangible capital asset | 1 | 7 |
Services received without charge from other government departments |
(23,839) | (17,218) |
Variations in Statement of Financial Position: | ||
Increase in accounts receivable and advances | 429,405 | 126,865 |
(Decrease) increase in prepaid expenses | 64 | (36) |
(Decrease) increase in accounts payable and accrued liabilities |
(127,561) | 2,291 |
(Increase) in vacation pay and compensatory leave | (3,590) | (470) |
(Increase) in employee severance benefits | (7,238) | (5,185) |
Transferred from Public Service Human Resource Management Agency of Canada, effective April 1, 2009 (note 13) |
20,117 | - |
Cash used by operating activities | 2,635,157 | 2,060,875 |
Capital investment activities | ||
Acquisition of tangible capital assets | 1,263 | 2,551 |
Transfer of capital assets from Department of Finance and Public Service Human Resource Management Agency of Canada | 3,687 | - |
Proceeds from disposition of tangible capital assets | (14) | (7) |
Cash used by capital investment activities | 4,936 | 2,544 |
Total Operating and Capital Investment Activities | 2,640,093 | 2,063,419 |
Net cash provided by the Government of Canada | (2,640,093) | (2,063,419) |
The accompanying notes form an integral part of these financial statements.
Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the public administration. It is headed by a Secretary, who reports to the President of the Treasury Board.
The mission of the Secretariat is to ensure that the rigorous stewardship of public resources achieves results for Canadians.
The core business of the Secretariat is currently organized into four programs. Therefore, figures for 2008-2009 in the Statement of Operations are redistributed for comparison purposes.
The Program activities are described as follow:
Primarily payments and receipts made on behalf of other government departments for the employer's share of Public Service Pension Plan and group insurance obligations.
The Secretariat provides support to the Treasury Board in its role as management board. This includes the promotion of improved management performance and the development of policies that support the prudent and effective management of the government's assets and its human, financial, information, and technology resources.
The Secretariat's role is to provide advice and recommendations to Treasury Board on the allocation and reallocation of resources to ensure that they are aligned with the government's priorities and responsibilities and that federal programs are effective, efficient, and provide value for money.
The Internal Services program activity includes the following key functions and costs that support Treasury Board and the internal management of the Secretariat: Minister's office operations, senior departmental management, strategic planning, communications, legal services, finances, human resources, accommodation, security, information management and information technology support, as well as some centrally administered services (e.g. translation).
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:
The Secretariat is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 to these financial statements provides a high-level reconciliation between the bases of reporting.
The Secretariat operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Secretariat is deposited to the CRF and all cash disbursements made by the Secretariat are paid from the CRF. The net cash provided by the Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments of the federal government.
The change in net position in the CRF is the difference between net cash provided by the Government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Secretariat. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
Expenses are recorded on the accrual basis:
Eligible public service employees participate in the Public Service Pension Plan sponsored by the Government of Canada. Contributions to the Plan for all departments and agencies, including additional contributions in respect of any actuarial deficiencies, are funded by the Secretariat as centrally managed funds, and they are expensed in the year incurred. The Secretariat recovers a portion of the pension contributions from other departments and agencies.
The Government of Canada also sponsors a variety of other benefit plans that the Secretariat is responsible to administer and or fund through its centrally managed funds. These benefits are recognized to expenses when they become due. A portion of these benefits is also recovered from other departments and agencies.
For the pension benefits and other future employee benefits covered by these plans, actuarially determined liabilities and related disclosure are presented in the financial statements of the Government of Canada, the ultimate sponsor of these benefits. As administrator of the centrally managed funds, the Secretariat expenses these benefits or contributions as they become due and records no accruals for future benefits. This accounting treatment corresponds to the funding provided to the department through Parliamentary appropriations.
Pension benefits: Eligible employees of the Secretariat participate in the Public Service Pension Plan. The Secretariat's share of contributions pertaining to the current service cost of its employees is allocated to the expenses of the program activities of Expenditure Management and Financial Oversight, Management Policy Development and Oversight, and in Internal Services in the year incurred.
Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees of the Secretariat is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.
Accounts receivable and advances are stated at amounts expected to be ultimately realized.
Contingent liabilities are potential liabilities which 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.
All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Secretariat does not capitalize intangibles, works of art, and historical treasures that have cultural, aesthetic, or historical value.
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 |
---|---|
Machinery and equipment | 3 to 10 years |
Motor vehicles | 3 years |
Leasehold improvements | Lesser of the remaining term of the lease or useful life of the improvement |
Assets under construction | Once in service, in accordance with asset class |
The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable.
The most significant items where estimates are used are contingent liabilities, the liability for employee severance 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.
The Secretariat 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 a prior, current or future year. Accordingly, the Secretariat 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:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Net cost of operations | 2,351,139 | 1,955,846 |
Adjustments for items affecting net cost of operations
but not affecting appropriations: Add (Less): |
||
Services received without charge from other government departments |
(23,839) | (17,218) |
Revenue not available for spending | 12,534 | 12,571 |
(Increase) in vacation pay and compensatory leave | (3,590) | (470) |
(Increase) in employee severance benefits | (7,238) | (5,185) |
Amortization of tangible capital assets | (3,341) | (1,225) |
Other | 14,038 | 13,169 |
(11,436) | 1,642 | |
Adjustments for items not affecting net cost of operations but affecting appropriations: Add (Less): |
||
Acquisitions of tangible capital assets | 1,263 | 2,551 |
Advances | 591 | (414) |
1,854 | 2,137 | |
Current year appropriations used | 2,341,557 | 1,959,625 |
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Appropriations provided | ||
Vote 1 — Program expenditures | 263,987 | 196,337 |
Vote 5 — Government contingencies | 712,117 | 651,565 |
Vote 10 — Government-Wide initiatives | 7,511 | 7,141 |
Vote 15 — Compensation adjustments | - | 1 |
Vote 20 — Public service insurance | 2,164,302 | 1,862,944 |
Vote 25 — Operating budget carry forward | 481,554 | 113,426 |
Vote 30 — Pay list Requirements | 4,543 | - |
Vote 35 — Budget implementation initiatives | 883,489 | - |
4,517,503 | 2,831,414 | |
Statutory authorities: | ||
Contributions to employee benefit plans | 31,286 | 20,835 |
Unallocated employer contributions made under the Public Service Superannuation Act and other retirement acts, and the Employment Insurance Act |
6,471 | 9,481 |
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act |
(517) | (972) |
President of the Treasury Board - salary and car allowance | 78 | 77 |
Other statutory authorities | 24 | 20 |
37,342 | 29,441 | |
Less: | ||
Lapsed authorities: | ||
Vote 1 — Program expenditures | (21,901) | (12,129) |
Vote 5 — Government contingencies | (712,117) | (651,565) |
Vote 10 — Government-Wide initiatives | (7,511) | (7,141) |
Vote 15 — Compensation adjustments | - | (1) |
Vote 20 — Public service insurance | (102,152) | (116,951) |
Vote 25 — Operating budget carry forward | (481,554) | (113,426) |
Vote 30 — Pay list Requirements | (4,543) | - |
Vote 35 — Budget implementation initiatives | (883,489) | - |
Spending of proceeds from the disposal of surplus crown assets | (21) | (17) |
(2,213,288) | (901,230) | |
Current year appropriations used | 2,341,557 | 1,959,625 |
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Net cash provided by the Government of Canada | 2,640,093 | 2,063,419 |
Revenue not available for spending | 12,534 | 12,571 |
Change in net position in the Consolidated Revenue Fund: | ||
(Increase) in accounts receivable and advances | (429,405) | (126,865) |
(Decrease) increase in prepaid expenses | (64) | 36 |
(Decrease) increase in accounts payable and accrued liabilities | 127,561 | (2,291) |
Increase in vacation pay and compensatory leave | 3,590 | 470 |
Transferred from Public Service Human Resource Management Agency of Canada, effective April 1, 2009 (note 13) | (20,117) | - |
Other | 7,365 | 12,285 |
(311,070) | (116,365) | |
Current year appropriations used | 2,341,557 | 1,959,625 |
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Transfer payments | 220 | 228 |
Operating expenses: | ||
Centrally Managed Funds (Note 4b) | 2,067,613 | 1,743,227 |
Departmental salaries and employee benefits | 212,981 | 160,983 |
Professional and special services | 47,675 | 39,519 |
Accommodation | 19,263 | 13,523 |
Transportation and telecommunications | 5,795 | 5,064 |
Machinery and equipment | 4,698 | 3,257 |
Utilities, materials and supplies | 1,921 | 1,524 |
Rentals | 1,312 | 969 |
Information | 1,033 | 733 |
Repairs and maintenance | 1,354 | 342 |
Amortization | 3,341 | 1,225 |
Other | 380 | 1,005 |
Total operating expenses | 2,367,366 | 1,971,371 |
Total Expenses including Transfer Payments | 2,367,586 | 1,971,599 |
As identified in Note 13, the Public Service Human Resource Management Agency of Canada (Canada Public Service Agency) was merged with Treasury Board Secretariat effective April 1, 2009. The expenses for the Treasury Board Secretariat for 2008-09 were not restated to reflect the merged department. A substantial portion of the increase in operating expenses for the Treasury Board of Canada Secretariat from 2008-09 to 2009-10, apart from centrally managed funds, is related to the merger.
The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat funds the employer's contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, including additional contributions in respect of actuarial deficiencies.
The Secretariat also funds payments to or in respect of:
Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Quebec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds pro-rata, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies, and all revolving funds based on 8.5 per cent (8.0 per cent in 2009) of salaries and wages incurred.
A breakdown by major category is as follows:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Expenses | ||
Public Service Pension Plan and Retirement Compensation Arrangement contributions (Statutory) |
2,687,405 | 2,323,497 |
Public Service Health Care Plan (Vote 20) | 909,815 | 790,469 |
Canada/Quebec Pension Plan contributions (Statutory) | 666,590 | 590,851 |
Provincial payroll taxes (Vote 20) | 524,764 | 464,549 |
Group disability and life insurance (Vote 20) | 472,401 | 355,677 |
Employment Insurance premiums (Statutory) | 274,641 | 248,404 |
Public Service Dental Care Plan (Vote 20) | 269,608 | 227,128 |
Pensioners' Dental Services Plan (Vote 20) | 122,031 | 110,840 |
Pension and other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad (Vote 20) |
50,330 | 47,384 |
Provincial Health Insurance Plan premiums (Vote 20) | 31,068 | 35,626 |
Quebec Parental Insurance Plan premiums (Vote 20) | 32,333 | 27,307 |
Public Service Death Benefit Account contributions (Statutory) | 11,582 | 10,430 |
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits (Statutory) |
6,200 | 9,500 |
Operating expenses (Vote 20) | 5,584 | 5,566 |
Pension and similar payments to former government employees (Vote 20 & Statutory) |
3,297 | 2,689 |
Employment Insurance premium reduction (Vote 20) | 1,749 | 1,341 |
Miscellaneous special payments (Statutory) | (517) | (972) |
Total Expenses | 6,068,881 | 5,250,286 |
Recoveries | ||
Employer's contributions to government employee benefit plans recovered from government departments and agencies (Statutory) |
3,639,946 | 3,173,201 |
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20) |
177,942 | 156,180 |
Employee's contributions to Public Service Health Care Plan recovered from government departments and other organizations (Vote 20) |
132,159 | 129,256 |
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20) |
51,221 | 48,422 |
Total Recoveries | 4,001,268 | 3,507,059 |
Net Expenses | 2,067,613 | 1,743,227 |
The following table presents details of revenues by category:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Parking fees | 11,595 | 11,643 |
Recovery of pension administration costs | 4,772 | 4,036 |
Other | 80 | 74 |
Total Revenues | 16,447 | 15,753 |
The following table presents details of accounts receivable and advances:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Receivables from other Federal Government departments and agencies | 657,819 | 229,142 |
Advances to external parties | 1,054 | 564 |
Receivables from external parties | 473 | 271 |
Advances to employees | 105 | 60 |
Deposits in transit to the Receiver General | 3 | 12 |
Total Accounts Receivable and Advances | 659,454 | 230,049 |
The following table presents the details of Tangible Capital Assets:
Amortization expense for the year ended March 31, 2010, is $3,341, thousand ($1,225 thousand in 2009).
The Transfer of Assets columns take into account all assets and related amortization as a result of the merger with the Public Service Human Resource Management Agency of Canada and the transfer from Department of Finance (Note 13).
($ thousands) | Cost | ||||
---|---|---|---|---|---|
Capital asset class | Opening balance | Transfer Assets (note 13) | Acqui-sitions | Disposals & write-offs | Closing balance |
Machinery and equipment |
15,084 | 8,816 | 1,227 | (104) | 25,023 |
Motor vehicles | 102 | 59 | 36 | (72) | 125 |
Leasehold improvements |
1,952 | - | - | - | 1,952 |
Assets under construction |
- | - | - | - | - |
Total | 17,138 | 8,875 | 1,263 | (176) | 27,100 |
($ thousands) | Accumulated amortization | ||||
---|---|---|---|---|---|
Capital asset class | Opening balance | Transfer Assets (note 13) | Amorti-zation | Disposals & write-offs | Closing balance |
Machinery and equipment |
2,005 | 5,158 | 3,307 | (96) | 10,374 |
Motor vehicles | 55 | 30 | 34 | (67) | 52 |
Leasehold improvements |
1,952 | - | - | - | 1,952 |
Assets under construction |
- | - | - | - | - |
Total | 4,012 | 5,188 | 3,341 | (163) | 12,378 |
($ thousands) | Net book value | |
---|---|---|
Capital asset class | 2010 | 2009 |
Machinery and equipment | 14,649 | 13,079 |
Motor vehicles | 73 | 47 |
Leasehold improve-ments | - | - |
Assets under construction | - | - |
Total | 14,722 | 13,126 |
The following table presents the details of accounts payable and accrued liabilities:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Accounts payable to other government departments and agencies | 321,929 | 254,804 |
Accounts payable to external parties | 244,846 | 184,410 |
Total accounts payable and accrued liabilities | 566,775 | 439,214 |
Eligible public service employees participate in the Public Service Pension 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 cent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Québec Pension Plans benefits and they are indexed to inflation.
The Secretariat funds the employer contributions to the Public Service Pension Plan, including additional contributions in respect of actuarial deficiencies, on behalf of all government departments and agencies, and recovers a portion of those costs.
During the year, the Secretariat contributed $22,589 thousand ($15,043 thousand in 2009) in respect of its own employees, which represents approximately 1.9 times (2.0 times in 2009) the contributions made by its employees.
The Secretariat provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. The liability for severance for 2009-2010 is determined using a Government-Wide estimate of 23.27% (compared to 26.92% in 2008-2009) and applying it to the Secretariat annual gross payroll related to indeterminate employees. Information about the severance benefits, measured as at March 31, is as follows:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Accrued benefit obligation, beginning of year | 28,888 | 23,703 |
Expense for the year | 1,070 | 7,149 |
Benefits paid during the year | (3,935) | (1,964) |
Transferred from other government department, effective April 1, 2009 (note 13) |
10,103 | - |
Accrued benefit obligation, end of year | 36,126 | 28,888 |
Claims have been made against the Secretariat in the normal course of operations. Legal proceedings for claims totaling approximately $67 billion ($62 billion in 2009) were still pending at March 31, 2010. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded on the financial statements. No accrual for these contingent liabilities has been made in the financial statements.
The most significant of these legal actions is described as follows:
In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the Public Service (PSSA), RCMP (RCMPSA), and Canadian Forces (CFSA) superannuation plans. The new Act authorized the President of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the plaintiffs' actions were dismissed. In February 2008, all 3 plaintiffs appealed the decisions. The appeal was heard on April 19, 20 and 21, 2010. A decision is pending.
The nature of the Secretariat's activities can result in some large multi-year contracts and obligations whereby the Secretariat will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
2011 | 2012 | 2013 | 2014 | 2015 and there-after |
Total | |
---|---|---|---|---|---|---|
($ thousands) | ||||||
Public Service Health/Dental Plans | 33,381 | 34,134 | 24,644 | 26,494 | 28,777 | 147,430 |
Other professional services | 5,491 | 1,514 | 7,005 | |||
Management consulting | 1,718 | 1,718 | ||||
Protection services | 2,107 | 2,107 | ||||
Computer services | 1,160 | 1,160 | ||||
Total | 43,857 | 35,648 | 24,644 | 26,494 | 28,777 | 159,420 |
The Secretariat is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Secretariat enters into transactions with these entities in the normal course of business and on normal trade terms.
Also, during the year, the Secretariat received without charge services from other departments as shown in the following table:
2010 | 2009 | |
---|---|---|
($ thousands) | ||
Accommodation | 19,263 | 13,523 |
Legal services | 4,576 | 3,695 |
Total | 23,839 | 17,218 |
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 departments without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Statement of Operations.
a) Order in Council P.C. 2009-0181 approved the amalgamation of the Public Service Human Resources Management Agency of Canada (Canada Public Service Agency) with the Treasury Board Secretariat, effective March 2, 2009. The financial impact of this merger on assets, liabilities and equity has been reported effective April 1, 2009 and the following assets and liabilities have been transferred from the Public Service Human Resources Management Agency of Canada to the Treasury Board Secretariat:
2010 | |
---|---|
($ thousands) | |
Assets | |
Accounts receivable and advances | 2,438 |
Tangible capital assets | 76 |
2,514 | |
Liabilities | |
Accounts payables and accrued liabilities | 9,670 |
Vacation pay and compensatory leave | 2,858 |
Employee severance benefits | 10,103 |
22,631 | |
Adjustment to Equity of Canada | (20,117) |
b) Order in Council P.C. 2009-0112 approved the transfer from the Department of Finance to the Treasury Board of Canada Secretariat of the control and the supervision of portions of the federal public administration related to shared corporate services in the Department of Finance, effective February 1, 2009. Assets of a net book value of $3,611 thousand have been transferred from the Department of Finance to the Treasury Board Secretariat in 2009-2010.
Comparative figures have been reclassified to conform to the current year's changed program activity presentation.
Planned spending in Program Activity 3 relates mainly to the following vote:
Other contingency funds are available to departments and agencies if required, and expenditures will be identified under their program activities. The following votes are therefore excluded from the Treasury Board of Canada Secretariat's (the Secretariat's) planned spending:
This vote provides the government with the authority and flexibility to meet unforeseen or urgent expenditures until parliamentary approval can be obtained. Most of the items in this vote are considered temporary advances to cover items that will be included in subsequent Supplementary Estimates for other appropriations in departments and agencies and reimbursed when the associated appropriation act is passed.
This vote supplements other appropriations in departments and agencies that support the implementation of strategic management initiatives across the public service. Historically, this vote has been used to support such initiatives as Government On-Line, comptrollership innovation and modernization, the Financial Information Strategy, employment equity, and program evaluation and internal audit.
This vote allows for routine operating budget carry-forward (OBCF) amounts, as established under the OBCF policy, to be transferred directly to departments and agencies in a timely manner once eligible amounts have been confirmed by the Secretariat and approved by Treasury Board ministers. The $1.2 billion in this vote, which represents no additional cost to the government, corresponds to the approximate amount of potential requirements that would otherwise have been presented in multiple Supplementary Estimates by departments and agencies.
This vote covers departments and agencies' paylist shortfalls related to parental benefits, severance, and other allowances. To avoid discrimination in hiring practices, paylist costs related to these expenditures have been provided for centrally since the introduction of the Operating Budget regime in 1993. This vote provides relief from cash management challenges departments and agencies face for these legal obligations.
This new Treasury Board central vote is for the implementation of certain programs included in Budget 2009. For the period commencing April 1, 2009, and ending June 30, 2009, Vote 35 will supplement other appropriations and provide applicable government organizations with appropriations for initiatives announced in Budget 2009. The appropriations will cover expenditures that are within the organizations' legal mandates but are not otherwise provided for, including new grants and increases in grant amounts listed in the Estimates.
The following definitions of the performance status ratings used in the DPR correspond to the level of performance achieved for priorities and expected results.
More than 100 per cent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result or priority identified in the corresponding report on plans and priorities (RPP) was achieved during the fiscal year.
One hundred per cent of the expected level of performance (as evidenced by the indicator and target or planned activities and expected outputs) for the expected result or priority identified in the corresponding RPP was achieved during the fiscal year.
Eighty to 99 per cent of the expected level of performance (as evidenced by the indicator and target or planned activities and expected outputs) for the expected result or priority identified in the corresponding RPP was achieved during the fiscal year.
Sixty to 79 per cent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result or priority identified in the corresponding RPP was achieved during the fiscal year.
Less than 60 per cent of the expected level of performance (as evidenced by the indicator and target or planned activities and outputs) for the expected result or priority identified in the corresponding RPP was achieved during the fiscal year.
Note to the reader
With the new Treasury Board Policy on Internal Control, effective April 1, 2009, departments are now required to demonstrate the measures they are taking to maintain effective systems of internal control over financial reporting (ICFR).
As part of this policy, departments are expected to conduct annual assessments of their system of ICFR, establish action plan(s) to address any necessary adjustments, and to attach to their Statements of Management Responsibility a summary of their assessment results and action plan.
Effective systems of ICFR aim to achieve reliable financial statements and to provide assurances that:
It is important to note that the system of ICFR is not designed to eliminate all risks, rather to mitigate risk to a reasonable level with controls that are balanced with and proportionate to the risks they aim to mitigate.
The maintenance of an effective system of ICFR is an ongoing process designed to identify, assess effectiveness and adjust as required key risks and associated key controls, as well as to monitor its performance in support of continuous improvement. As a result, the scope, pace and status of those departmental assessments of the effectiveness of their system of ICFR will vary from one organization to the other based on risks and taking into account their unique circumstances.
This document is an annex to the Treasury Board of Canada Secretariat's Statement of Management Responsibility Including Internal Control Over Financial Reporting for the fiscal year 2009-2010. As required by the new Treasury Board Policy on Internal Control, effective April 1, 2009, this document provides summary information on the measures taken by the Treasury Board of Canada Secretariat to maintain an effective system of internal control over financial reporting (ICFR). In particular, it provides summary information on the internal control assessments conducted by the Treasury Board of Canada Secretariat as at March 31, 2010, including progress, results and related action plans along with some financial highlights pertinent to understanding the control environment unique to the Treasury Board of Canada Secretariat.
It is important to note that the system of ICFR is not designed to eliminate every possible risk, rather to mitigate risk to a reasonable level with controls that are balanced with and proportionate to the risks they aim to mitigate. The maintenance of an effective system of ICFR is an ongoing process designed to identify and prioritize risks and the controls to mitigate those risks, as well as to monitor its performance in support of continuous improvement.
The Treasury Board of Canada Secretariat is the administrative arm of the Treasury Board. The Treasury Board is a Cabinet committee of ministers invested with a broad range of responsibilities for management excellence, policy development, and budget and human resources oversight. The Treasury Board of Canada Secretariat supports Treasury Board ministers and strengthens the way government is managed to better serve Canadians and ensure value-for-money in government spending. The Secretariat achieves these objectives by:
a) fulfilling its responsibilities as a department and central agency of the federal government; and
b) making central payments and receiving revenues as the employer for government-wide public service pension and benefits.
While both of these roles are important, the overwhelming majority of the expenditures, in these financial statements, relate to the central payments for pension and benefits.
Detailed information on the Treasury Board of Canada Secretariat's authority, mandate and program activities can be found in its Departmental Performance Report and in its Report on Plans and Priorities.
Financial statements (unaudited) of the Treasury Board of Canada Secretariat for fiscal-year 2009-2010 can be found on the Treasury Board of Canada Secretariat website. Information can also be found in the Public Accounts of Canada website.
Financial Highlights of Treasury Board of Canada Secretariat:
The Secretariat relies on other organizations for the processing of certain transactions that are recorded in its financial statements. These arrangements include but are not limited to:
Common Arrangements:
Specific Arrangements:
Other government departments rely on the Treasury Board of Canada Secretariat for the processing of certain transactions or the provision of information which impact their financial statements:
Common Arrangements:
Specific Arrangements:
Effective March 2, 2009, the Public Service Human Resources Management Agency of Canada was amalgamated with the Treasury Board of Canada Secretariat. The financial impact of this amalgamation was not reflected in the fiscal year 2008-09 financial statements. The amalgamation with the Public Service Human Resources Management Agency of Canada resulted in additional budgetary resources being recorded in the Financial Statements of the Secretariat of $56M. In addition, effective February 1, 2009, a significant portion of the Corporate Services Branch in the Department of Finance was transferred to the Secretariat and as a result, TBS now provides corporate shared services to the Department of Finance. The expense for the Secretariat's share for most of these services had already been reflected in the Treasury Board of Canada Secretariat's Financial Statements.
Treasury Board of Canada Secretariat recognizes the importance of senior management leadership in ensuring that staff at all levels understand their roles in maintaining effective systems of ICFR and are well equipped to exercise these responsibilities. The Treasury Board of Canada Secretariat's objective is to continually improve its internal control environment using a risk-based approach and targeted resource investment so that the required level of effectiveness is achieved at a manageable cost.
Below are the Secretariat's key positions and committees with responsibilities for maintaining and reviewing the effectiveness of its system of ICFR.
Secretary – Treasury Board of Canada Secretariat's Deputy Head, as Accounting Officer, assumes overall responsibility and leadership for the measures taken to maintain an effective system of internal control. In this role, the Secretary chairs the Treasury Board of Canada Secretariat Executive Committee and is a member of the Departmental Audit Committee.
Chief Financial Officer (CFO) – The Treasury Board of Canada Secretariat's CFO reports directly to the Secretary and provides leadership for the coordination, coherence and focus on the design and maintenance of an effective and integrated system of ICFR, including its annual assessment.
Assistant Secretaries and other Senior Departmental Managers - The Treasury Board of Canada Secretariat's senior departmental managers in charge of program delivery are responsible for maintaining and reviewing effectiveness of their system of ICFR falling within their mandate.
Chief Audit Executive (CAE) – The Treasury Board of Canada Secretariat's CAE reports directly to the Secretary and provides assurance through periodic internal audits which are instrumental to the maintenance of an effective system of ICFR.
Government of Canada Audit Committee (GCAC) - The GCAC is an advisory committee that provides objective views on the Treasury Board of Canada Secretariat's financial statements, risk management, control and governance frameworks and it is comprised of three external members, a deputy minister external to the Secretariat, and the Secretary of the Treasury Board. As such, it reviews the Treasury Board of Canada Secretariat's Corporate Risk Profile, its internal audit reports, and its system of internal control, including the assessment and action plans relating to the system of ICFR.
The Secretariat's control environment includes measures and tools to help raise awareness and to develop employees' internal control knowledge and skill sets. These include:
In 2004, the Government of Canada commenced an initiative to determine the ability of departments to sustain controls-based audits of their financial statements, thus placing reliance on well functioning internal controls. As a result, in 2007, the Treasury Board of Canada Secretariat received an audit readiness assessment that had been conducted by an independent external consulting firm. This assessment provided the baseline for the Treasury Board of Canada Secretariat to move forward in reviewing its internal controls and preparing for controls-based audited financial statements.
Whether it is to support controls-based audits or meet the requirements of the Policy on Internal Control, the Secretariat must be able to maintain an effective system of ICFR with the objectives to provide reasonable assurance that a) transactions are appropriately authorized, b) financial records are properly maintained, c) assets are safeguarded and d) applicable laws, regulations and policies are complied with.
Over time, this includes assessment of design and operating effectiveness of the departmental system of ICFR leading to ensuring the on-going monitoring and continuous improvement of its departmental system of ICFR.
Design effectiveness means to ensure that key control points are identified, documented, in place and that they are aligned with the risks (i.e. controls are balanced with and proportionate to the risks they aim to mitigate) and that any remediation is addressed. This includes the mapping of key processes and IT systems to the main accounts.
Operating effectiveness means that the application of key controls has been tested over a defined period and that any required remediation is addressed. Such testing covers all departmental control levels which include corporate or entity, general computer and business process controls.
The Secretariat, as a department, has assessed the design of its system of ICFR and has a monitoring process in place to sustain and continually improve on this system.
In proceeding with the preparation for sustaining a controls-based audit, the Treasury Board of Canada Secretariat, with the assistance of an independent external consulting firm, reviewed its Financial Statements, identifying the significant business processes and key control points. Potential gaps in the internal control framework were then identified along with the level of associated risks. The review started with general entity-level controls and continued with business process controls which were separated into nine key processes. These business processes were grouped into two categories: 1) those that concerned the Treasury Board of Canada Secretariat as a Department and 2) those that concerned the Treasury Board of Canada Secretariat in its role of managing government-wide funds and Public Service Employer payments.
Business processes for the Treasury Board of Canada Secretariat as a department:
Business processes for the Treasury Board of Canada Secretariat as the manager for government-wide funds and Public Service Employer Payments:
For each business process for the Secretariat as a department, the following steps were substantially completed:
For each business process related to the Secretariat as the manager for government-wide funds and Public Service Employer Payments, the following steps were partially completed:
The Secretariat also took into account information from relevant audits and evaluations. The following internal audit reports were considered:
In assessing its key controls, the Secretariat looked at both design effectiveness and operating effectiveness, and initiated confirmation of control implementation.
When completing design effectiveness testing, the Secretariat updated business process documentation and validated the key processes with management. It verified that the documented processes corresponded to actual practices and adjustments were made to documentation and/or the actual process, as required. As a result of these assessments, the Secretariat identified the need for remediation in the following areas:
Documentation of Controls and Evidence of Controls:
Accounting:
Computer system security and access control:
Review function
Monitoring and quality assurance of financial statement preparation:
Reliance on Other Government Departments
In 2009-10, the Secretariat reconfirmed that almost all controls related to the Treasury Board of Canada Secretariat as a department were functioning. Those that were not functioning properly were identified and corrective actions initiated. Controls related to Secretariat as manager for government-wide funds and Public Service Employer Payments are being reassessed as processes have been updated since the audit readiness assessment. Operating effectiveness assessment of internal controls will be conducted, as required in 2010-11 and 2011-12.
The Treasury Board of Canada Secretariat has created a dedicated unit responsible for a well integrated risk based approach for the ongoing assessment of the Secretariat's internal controls over financial reporting. The Secretariat's Internal Control section will monitor any required remediation actions to entity level, business processes and general computer controls based on lessons learned from the annual assessments and audits. This includes promoting awareness of ICFR and clarifying roles and responsibilities of employees within the Secretariat who are involved with ICFR.
During 2009-2010, the Secretariat continued to make significant progress in assessing and improving its controls. Below is a summary of the main progress made by the Secretariat:
The Secretariat, as a department, completed work to address the following necessary adjustments:
The Secretariat as the manager for government-wide funds and Public Service Employer Payments has commenced work to address the following necessary adjustments:
By end of 2010-11:
The Secretariat, in general, plans to:
The Secretariat, as a department, plans to:
The Secretariat, as the manager for government-wide funds and Public Service Employer Payments, plans to:
By end of 2011-12:
The Secretariat, in general, plans to:
The Secretariat, as the manager for government-wide funds and Public Service Employer Payments, plans to: