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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:
- Foundational Learning
- Organizational Leadership Development
- Public Sector Management Innovation
- 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
|
- Date modified:
