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Future-Oriented Statement of Operations 2014–2015 (Unaudited)

For the years ending March 31, 2014 and March 31, 2015

The Canada School of Public Service's Future-Oriented Statement of Operations for the fiscal years ending March 31, 2014 and March 31, 2015 are presented in the two tables below. The presentation of the information by segment is based on the School's programs. The first table presents the expenses to be incurred and the forecasted revenues for the School's programs by major object of expenses and by major type of revenues. The second table presents results by program.

Future-Oriented Statement of Operations by Program, Major Object of Expenses and Revenues

Future-Oriented Statement of Operations by Program, Major Object of Expenses and Revenues, in thousands of dollars. Read down the first column for operating expenses, revenues and the net cost of continuing operations, then to the right for the figures for 2014-15 by program and the total for the year, followed by estimated results for 2013-14.
(in thousands of dollars) Planned Results – 2014-15 Estimated Results
2013-14
Foundational
Learning 		Organizational
Leadership
Development 		Public Sector
Management
Innovation 		Internal
Services 		Total
Operating expenses
Salaries and employee benefits 31,858 7,385 7,472 21,494 68,209 71,360
Professional and special services 12,263 1,877 1,412 4,373 19,925 21,341
Rental of accommodation and equipment 5,537 1,117 971 2,698 10,323 10,533
Transportation and telecommunications 669 168 123 130 1,090 1,971
Utilities, materials and supplies 378 89 36 226 729 957
Small equipment and parts 407 59 52 219 737 885
Printing and publishing 361 16 260 83 720 880
Amortization of tangible capital assets 1,835 316 269 712 3,132 2,058
Repair and maintenance 138 21 15 53 227 366
Total operating expenses 54,546 11,948 10,610 27,988 105,092 110,351
 
Revenues
Sales of goods and services 30,800 6,100 3,100 - 40,000 41,500
 
Net cost of continuing operations 23,746 5,848 7,510 27,988 65,092 68,851

Future-Oriented Statement of Operations by Program

Future-Oriented Statement of Operations by Program, in thousands of dollars. Read down the first column for expenses, revenues and the net cost of operations, then to the right for the actual results for 2012-13, the estimated results for 2013-14 and the planned results for 2014-15.
(in thousands of dollars) Actual
Results
2012-13 		Estimated
Results
2013-14 		Planned
Results
2014-15
Expenses
Foundational Learning 55,650 55,468 54,546
Organizational Leadership Development 9,822 12,400 11,948
Public Service Management Innovation 10,985 11,785 10,610
Internal Services 34,402 30,698 27,988
Total Expenses 110,859 110,351 105,092
 
Revenues
Sales of goods and services 46,771 41,500 40,000
Other revenue 21 - -
Total revenues 46,792 41,500 40,000
 
Net cost of operations 64,067 68,851 65,092

Notes to the Future-Oriented Statement of Operations

1. Authority and Objectives

The Canada School of Public Service was created on April 1, 2004, when the legislative provisions of Part IV of the Public Service Modernization Act came into force. The School is a departmental corporation under the Treasury Board Secretariat, and its mission is set out in the Canada School of Public Service Act.

The School is the common learning service provider for the Public Service of Canada. It has a legislative mandate to provide a range of learning activities to build individual and organizational capacity and management excellence within the public service. The School is in a unique position to offer relevant, affordable and quality learning services in both official languages to all public service employees at all levels and across the country, as well as to functional communities and public service organizations.

The School's program priorities are geared to delivering results in accordance with the Treasury Board's Policy on Learning, Training and Development, which came into effect on January 1, 2006. The Policy highlights the value of learning and the importance of creating a learning culture within the public service.

The School has a single strategic outcome: "Public servants have the common knowledge and the leadership and management competencies they require to fulfil their responsibilities in serving Canadians." Four programs support this strategic outcome:

  1. Foundational Learning
  2. Organizational Leadership Development
  3. Public Sector Management Innovation
  4. Internal Services

The School was created to ensure that all employees of the Public Service of Canada have the competencies and common knowledge required to serve Canadians in the most efficient and effective way possible. To achieve this goal, the School continues to offer a strong and consistent curriculum that focuses on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.

2. Methodology and Significant Assumptions

The preparation of the Future-Oriented Statement of Operations requires making estimates and assumptions that affect the reported amounts. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, assume a continuation of current governmental priorities and remain consistent with the departmental mandate and strategic objectives. At the time of the preparation of this Future-Oriented Statement of Operations, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The Future-Oriented Statement of Operations has been prepared

  • on the basis of government policies, government priorities and the external environment at the time the future-oriented financial information was finalized;
  • on the basis of the departmental plans as described in the Report on Plans and Priorities;
  • on the basis of the mid-year financial review for 2013-14 estimated results;
  • on the basis of the revenue forecast of $40 million in 2014-15, as disclosed in the Main Estimates and the Report on Plans and Priorities;
  • according to the requirements of Treasury Board accounting standards, which are based on generally accepted accounting principles for the Canadian public sector;
  • on the basis that estimated year-end information for 2013-14 is used as the opening position for the 2014-15 planned results; and
  • in consideration of historical costs and trends.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for 2013-14 and 2014-15, actual results achieved are likely to vary from the forecast information presented, and these differences could be material.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical financial statements include the impact of economic conditions on earned revenue and reductions in expenditures due to increased operational efficiencies and further government-wide savings initiatives.

Once the Report on Plans and Priorities is tabled in Parliament, the School will not be updating the forecasts for any changes to appropriations. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies, which are consistent with generally accepted accounting principles for the Canadian public sector.

Significant accounting policies are as follows:

  • a. Revenues

    Funds received from other governmental departments and external parties are recorded upon receipt as deferred revenue. These revenues are recognized in the period in which the related expenses are incurred.

    Funds that have been received are recorded as deferred revenue, provided the School has an obligation to other parties for the provision of products and services in the future.

  • b. Expenses

    Expenses are recorded on an accrual basis. Expenses for the School's operations are recorded when goods are received or services are rendered, including services provided without charges for accommodation, employee contributions to health and dental insurance plans, legal services and worker's compensation, which are recorded as expenses at their estimated cost. Vacation pay, compensatory leave and severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment. Expenses also include amortization of those tangible capital assets that are capitalized at their acquisition cost.

  • c. Severance Benefits

    Certain employees are eligible to receive 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 is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the government as a whole.

    The School 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 to those groups with provisions for severance benefits in their collective agreements.

    Information about the severance benefits, measured as at March 31, is as follows:

    Severance Benefits, in thousands of dollars. The table presents, from left to right, the expenses for 2015 and 2014.
    (in thousands of dollars) 2015 2014
    Expenses for the year 2,909 4,952
  • Tangible Capital Assets

    All tangible capital assets and leasehold improvements with an initial cost of $5,000 or more are recorded at their acquisition cost. Assets under construction are only amortized when the related projects are completed and put in service; their amortization is based on the estimated useful life of the asset.

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

    Tangible Capital Assets. Read down the first column of asset classes, then to the right for the amortization period.
    Asset class Amortization period
    Machinery and equipment 5-10 years
    Other equipment (including furniture) 5-12 years
    Informatics hardware 3-5 years
    Software (including developed software) 3-5 years
    Motor vehicle 4 years
    Leasehold improvements 2-10 years
    Assets under construction Once in service, in accordance with asset type

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

5. Parliamentary Authorities

The School is partially financed by the Government of Canada through Parliamentary appropriations. The cash accounting basis is used to recognize transactions affecting Parliamentary appropriations. The Future-Oriented Statement of Operations is based on accrual accounting. Consequently, items recognized in the Future-Oriented Statement of Operations in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the School 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 authorities requested
    Reconciliation of Net cost of operation to authorities requested for the year ending March 31 in thousands of dollars. Read down the first column for Net Cost of Operations before government funding and transfers, Adjustments for items affecting net cost of operations but not affecting authorities, Adjustments for items not affecting net cost of operations but affecting authorities and current year authorities, then to the right for the figures for 2015 and for 2014.
    (in thousands of dollars) 2015 2014
    Net cost of operations before government funding and transfers 65,093 68,851
     
    Adjustments for items affecting net cost of operations but not affecting authorities
    Revenues 40,000 41,500
    Services provided without charge by other government departments (13,562) (13,639)
    Severance benefits (2,909) (4,952)
    Amortization of tangible capital assets (3,132) (2,056)
    Other (1,656) (626)
    Total adjustments for items affecting net cost of operations but not affecting authorities 18,741 20,227
     
    Adjustments for items not affecting net cost of operations but affecting authorities
    Acquisition of tangible capital assets 1,656 625
    Total adjustments for items not affecting net cost of operations but affecting authorities 1,656 625
    Current year authorities to be used 85,490 89,703
  • b. Authorities requested
    Authorities requested for the year ending March 31 in thousands of dollars. Read down the first column for Authorities Requested and Statutory Authorities, then to the right for the figures for 2015 and for 2014.
    (in thousands of dollars) 2015 2014
    Authorities requested
    Vote 40 – Program expenditures 39,922 42,231
     
    Statutory authorities
    Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act 40,000 41,500
    Contributions to employee benefits plan 5,568 6,233
    Anticipated Carry Forward - 261
    Total statutory authorities to be used 45,568 48,488
     
    Current year authorities to be used 85,490 89,703

    Forecast authorities requested for the year ending March 31, 2015, are the planned spending amounts presented in the 2014-15 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2013, include amounts presented in the 2013-14 Main Estimates and Supplementary Estimates (A) and (B), amounts planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

6. Related Party Transactions

The School is related as a result of common ownership to all government departments, agencies, and Crown corporations. The School enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the School received common services without charge from other government departments as disclosed below.

  • Common services provided without charge by other government departments

    The government has centralized some of its administrative activities for efficiency, cost-effectiveness and economic delivery of programs to the public. As a result, certain services are provided to departments and agencies without charge. The costs of these services, such as payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included in the School's Future-Oriented Statement of Operations and Departmental Net Financial Position.

    Common services provided without charge for other government departments for the year ending March 31 in thousands of dollars. Read down the first column for the common services, then to the right for the figures for 2015 and for 2014.
    (in thousands of dollars) 2015 2014
    Accommodation 9,000 9,000
    Employer's contribution to the health and dental insurance plans 4,562 4,639
    Total common services provided without charge from other government departments 13,562 13,639
  • Other transactions with related parties
    Other transactions with related parties for the year ending March 31 in thousands of dollars. Read down the first column for the transactions, then to the right for the figures for 2015 and for 2014.
    (in thousands of dollars) 2015 2014
    Revenues – Other government departments and agencies 40,000 41,500
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