Financial Statements 2019-2020 (Unaudited)
For the year ended March 31, 2020
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Table of Contents
Statement of Management Responsibility Including Internal Control Over Financial Reporting
Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2020, and all information contained in these statements rests with the management of the Canada School of Public Service (the School). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.
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 School's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the School's Departmental Results Report is consistent with these financial statements.
Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) 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, the Canada School of Public Service 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 School; and, through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.
The system of ICFR is designed to mitigate risks to a reasonable level based, on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.
The School is subject to periodic Core Control Audits performed by the Office of the Comptroller General (OCG) and uses the results of such audits to comply with the Treasury Board Policy on Financial Management.
A Core Control Audit was performed in 2014–2015 by the OCG. The Audit Report and related Management Action Plan are posted on the School's Web site.
The financial statements of the School have not been audited.
Original signed by:
Taki Sarantakis
President
Tom Roberts
Chief Financial Officer
October 7, 2020
Ottawa, Canada
Statement of Financial Position (Unaudited)
As at March 31
(in thousands of dollars)
Statement of Financial Position (Unaudited) as at March 31 (in thousands of dollars)
|
2020 |
2019 |
| Liabilities |
|
Accounts payable and accrued liabilities (note 4)
|
9,570 |
9,424 |
|
Vacation pay and compensatory leave
|
4,451 |
3,503 |
|
Employee future benefits (note 5)
|
2,919 |
2,599 |
|
Other liabilities
|
86 |
87 |
|
Total liabilities
|
17,026 |
15,613 |
| Financial assets |
|
Due from Consolidated Revenue Fund
|
5,898 |
9,054 |
|
Accounts receivable and advances (note 6)
|
6,035 |
2,826 |
|
Total gross financial assets
|
11,933 |
11,880 |
| Financial assets held on behalf of Government |
|
Accounts receivable and advances (note 6)
|
(2,052) |
(1,902) |
| Total financial assets held on behalf of Government |
(2,052) |
(1,902) |
| Total net financial assets |
9,881 |
9,978 |
| Departmental net debt |
7,145 |
5,635 |
| Non-financial assets |
|
Prepaid expenses
|
526 |
461 |
|
Tangible capital assets (note 7)
|
7,042 |
8,255 |
|
Total non-financial assets
|
7,568 |
8,716 |
| Departmental net financial position |
423 |
3,081 |
The accompanying notes form an integral part of the financial statements.
Original signed by:
Taki Sarantakis
President
Tom Roberts
Chief Financial Officer
October 7, 2020
Ottawa, Canada
Statement of Operations and Departmental Net Financial Position (Unaudited)
For the year ended March 31
(in thousands of dollars)
Statement of Operations and Departmental Net Financial Position (Unaudited) for the year ended March 31 (in thousands of dollars)
|
Planned results 2020 |
2020 |
2019 |
| Expenses |
Learning services |
74,772 |
73,701 |
72,080 |
Internal services |
24,924 |
23,859 |
23,069 |
Total expenses |
99,696 |
97,560 |
95,149 |
| Revenues |
Sales of goods and services |
15,461 |
6,911 |
6,424 |
Other revenues |
|
1 |
2 |
Total revenues |
15,461 |
6,912 |
6,426 |
| Net cost of operations before government funding and transfers |
84,235 |
90,648 |
88,723 |
| Government funding and transfers |
Net cash provided by Government of Canada |
|
77,212 |
75,398 |
Change in due from Consolidated Revenue Fund |
|
(3,156) |
2,710 |
Services provided without charge by other government departments (note 8) |
|
14,107 |
13,624 |
Transfer of assets to other government departments (note 9) |
|
(173) |
(16) |
| Net cost of operations after government funding and transfers |
|
2,658 |
(2,993) |
| Departmental net financial position — Beginning of year |
|
3,081 |
88 |
| Departmental net financial position — End of year |
|
423 |
3,081 |
Segmented information (note 10)
The accompanying notes form an integral part of the financial statements.
Statement of Change in Departmental Net Debt (Unaudited)
For the year ended March 31
(in thousands of dollars)
Statement of Change in Departmental Net Debt (Unaudited) for the year ended March 31 (in thousands of dollars)
|
2020 |
2019 |
| Net cost of operations after government funding and transfers |
2,658 |
(2,993) |
| Change due to tangible capital assets |
Acquisition of tangible capital assets (note 7) |
1,225 |
4,344 |
Amortization of tangible capital assets (note 7) |
(2,432) |
(1,525) |
Net gain (loss) on disposal of tangible capital assets |
(3) |
|
Transfer to other government departments |
(3) |
|
Total change due to tangible capital assets |
(1,213) |
2,819 |
| Change due to prepaid expenses |
65 |
357 |
| Net increase in departmental net debt |
1,510 |
183 |
| Departmental net debt — Beginning of year |
5,635 |
5,452 |
| Departmental net debt — End of year |
7,145 |
5,635 |
The accompanying notes form an integral part of the financial statements.
Statement of Cash Flows (Unaudited)
For the year ended March 31
(in thousands of dollars)
Statement of Cash Flows (Unaudited) for the year ended March 31 (in thousands of dollars)
|
2020 |
2019 |
| Operating activities |
| Net cost of operations after government funding and transfers |
90,648 |
88,723 |
| Non-cash items |
Amortization of tangible capital assets (note 7) |
(2,432) |
(1,525) |
Services provided without charge by other government departments (note 8) |
(14,107) |
(13,624) |
Net gain (loss) on disposal of tangible capital assets |
(3) |
|
| Variations in Statement of Financial Position |
Increase (decrease) in accounts receivable and accountable advances |
3,059 |
(1,798) |
Increase in prepaid expenses |
65 |
357 |
Increase in accounts payable and accrued liabilities |
(146) |
(1,054) |
Increase in vacation pay and compensatory leave |
(948) |
(326) |
Decrease (increase) in employee future benefits |
(320) |
373 |
Decrease (increase) in other liabilities |
1 |
(86) |
Transfer of financial assets to other government departments (note 9) |
170 |
16 |
| Cash used in operating activities |
75,987 |
71,056 |
| Capital investing activities |
Acquisitions of tangible capital assets (note 7) |
1,225 |
4,344 |
Proceeds from disposal of assets |
|
(2) |
| Cash used in capital investing activities |
1,225 |
4,342 |
| Net cash provided by Government of Canada |
77,212 |
75,398 |
The accompanying notes form an integral part of the financial statements.
Notes to the Financial Statements (Unaudited)
For the year ended March 31
1. Authority and objectives
On April 1, 2004, amendments to the Canadian Centre for Management Development Act were proclaimed and the organization was renamed the Canada School of Public Service (the School). The amended legislation, now entitled the Canada School of Public Service Act, continues and expands the mandate of the former organization as a departmental corporation. The School reports to the President of the Treasury Board and Minister of Digital Government.
The School has a single core responsibility: "Common Public Service Learning."
The School was created to ensure that all employees of the Public Service of Canada have the required competencies and common knowledge to serve Canadians in the most efficient and effective way possible. To achieve this goal, the School continues to offer a strong, 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. Summary of significant accounting policies
These financial statements have been prepared using the School's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.
Significant accounting policies are as follows:
(a) Parliamentary authorities
The School is financed primarily by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the School do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the basis of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Positions are the amounts reported in the Future-oriented Statement of Operations included in the 2019-20 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2019-20 Departmental Plan.
(b) Net cash provided by Government
The School operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the School is deposited to the CRF, and all cash disbursements made by the School are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.
(c) Due from or to the CRF
Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the School is entitled to draw from the CRF without further authorities to discharge its liabilities.
(d) Revenues
Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
(e) Expenses
Expenses are recorded on the accrual basis:
- Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.
- Services provided without charge by other government departments for accommodation and employer contributions to the health and dental insurance plans are recorded as operating expenses at their estimated cost.
(f) Employee future benefits
- Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government of Canada. The School's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The School's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
- Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employees groups.The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
(g) Accounts receivable and advances
Accounts receivable and advances are stated at the lower of cost or net recoverable value. A valuation allowance is recorded for receivables where recovery is considered uncertain.
(h) Measurement uncertainty
The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes at March 31. 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 the allowance for doubtful accounts, the liability for employee future 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.
3. Parliamentary authorities
The School receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position 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 current year authorities used
(in thousands of dollars)
Reconciliation of net cost of operations to current year authorities used (in thousands of dollars)
|
2020 |
2019 |
| Net cost of operations after government funding and transfers |
90,648 |
88,723 |
| Adjustments for items affecting net cost of operations but not affecting authorities: |
Services provided without charge by other government departments |
(14,107) |
(13,624) |
Revenues |
6,912 |
6,426 |
Amortization of tangible capital assets |
(2,432) |
(1,525) |
Net loss on disposal of tangible capital assets |
(3) |
|
Decrease (increase) employee future benefits |
(320) |
373 |
Increase in vacation pay and compensatory leave |
(948) |
(326) |
Prior year adjustments |
55 |
80 |
Other |
35 |
(63) |
Total items affecting net cost of operations but not affecting authorities |
(10,808) |
(8,659) |
| Adjustments for items not affecting net cost of operations but affecting authorities: |
Acquisition of tangible capital assets (note 7) |
1,225 |
4,344 |
Transition payments for implementing salary payments in arrears (note 9) |
9 |
|
Increase in prepaid expenses |
65 |
357 |
Salary overpayments to recover |
241 |
470 |
Total items not affecting net cost of operations but affecting authorities |
1,540 |
5,171 |
| Current year authorities used |
81,380 |
85,235 |
(b) Authorities provided and used
(in thousands of dollars)
Authorities provided and used (in thousands of dollars)
|
2020 |
2019 |
| Authorities provided: |
Vote 1 — Operating expenditures |
65,791 |
68,286 |
Statutory amounts |
22,088 |
24,201 |
| Less: |
Authorities available for future years |
(4,912) |
(6,424) |
Lapsed: Operating |
(1,587) |
(828) |
| Current year authorities used |
81,380 |
85,235 |
4. Accounts payable and accrued liabilities
The following table presents details of the School's accounts payable and accrued liabilities:
(in thousands of dollars)
Accounts payable and accrued liabilities (in thousands of dollars)
|
2020 |
2019 |
| Accounts payable — Other government departments and agencies |
2,489 |
1,377 |
| Accounts payable — External parties |
1,681 |
2,295 |
| Total accounts payable |
4,170 |
3,672 |
| Accrued liabilities |
5,400 |
5,752 |
| Total accounts payable and accrued liabilities |
9,570 |
9,424 |
5. Employee future benefits
(a) Pension benefits
The School's 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 percent 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 Plan benefits, and they are indexed to inflation.
Both the employees and the School contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups — Group 1 consists of existing plan members as of December 31, 2012 and Group 2 consists of members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.
The 2019-20 expense amounts to $6,063 thousand ($5,601 thousand in 2018-19). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2018-19) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2018-19) the employee contributions.
The School's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
(b) Severance benefits
Severance benefits provided to the School's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.
Changes in obligations during the year were as follows:
(in thousands of dollars)
Changes in obligations during the year (in thousands of dollars)
|
2020 |
2019 |
| Accrued benefit obligation, beginning of year |
2,599 |
2,972 |
| Expense for the year |
359 |
208 |
| Benefits paid during the year |
(39) |
(581) |
| Accrued benefit obligation — end of year |
2,919 |
2,599 |
6. Accounts receivable and advances
The following table presents details of the School's accounts receivable and advances balances.
(in thousands of dollars)
Accounts receivable and advances (in thousands of dollars)
|
2020 |
2019 |
| Receivables — Other government departments and agencies |
3,870 |
916 |
| Receivables — External parties |
2,173 |
1,912 |
| Advances |
|
5 |
| Subtotal |
6,043 |
2,833 |
| Allowance for doubtful accounts on receivables from external parties |
(8) |
(7) |
| Gross accounts receivable and advances |
6,035 |
2,826 |
| Accounts receivable held on behalf of Government |
(2,052) |
(1,902) |
| Net accounts receivable and advances |
3,983 |
924 |
7. Tangible capital assets
All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The School does not capitalize intangible assets.
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
| 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 |
| Leasehold improvements |
Over the useful life of the improvement or the lease term, whichever is shorter |
Assets under construction are recorded in the applicable capital asset class and amortized when they become available for use.
(in thousands of dollars)
Tangible capital assets - Cost (in thousands of dollars)
| Capital asset class |
Cost |
| Opening balance |
Acquisitions |
Adjustments |
Disposals and write-offs |
Closing balance |
| Machinery and equipment |
3,614 |
208 |
|
|
3,822 |
| Other equipment (including furniture) |
1,117 |
60 |
|
|
1,177 |
| Informatics hardware |
3,021 |
666 |
(4) |
(4) |
3,679 |
| Software (including developed software) |
11,017 |
52 |
|
|
11,069 |
| Leasehold improvements |
3,938 |
239 |
|
|
4,177 |
| Total |
22,707 |
1,225 |
(4) |
(4) |
23,924 |
Tangible capital assets - Accumulated amortization (in thousands of dollars)
| Capital asset class |
Accumulated amortization |
| Opening balance |
Amortization |
Adjustments |
Disposals and write-offs |
Closing balance |
| Machinery and equipment |
2,088 |
658 |
|
|
2,746 |
| Other equipment (including furniture) |
185 |
99 |
|
|
284 |
| Informatics hardware |
585 |
914 |
(1) |
(1) |
1,497 |
| Software (including developed software) |
10,106 |
436 |
|
|
10,542 |
| Leasehold improvements |
1,488 |
325 |
|
|
1,813 |
| Total |
14,452 |
2,432 |
(1) |
(1) |
16,882 |
Tangible capital assets. Net book value. Read down the first column for the capital asset class. Read across to the right for the net book value, in thousands of dollars, for 2020 and 2019. The totals are presented in the last row of the table.
| Net book value |
| Capital asset class |
2020 |
2019 |
| Machinery and equipment |
1,076 |
1,526 |
| Other equipment (including furniture) |
893 |
932 |
| Informatics hardware |
2,182 |
2,436 |
| Software (including developed software) |
527 |
911 |
| Leasehold improvements |
2,364 |
1,450 |
| Total |
7,042 |
8,255 |
8. 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.
(a) Common services provided without charge by other government departments
During the year, the School received services without charge from certain common service organizations related to accommodation and the employer's contribution to the health and dental insurance plans. These services provided without charge have been recorded in the School's Statement of Operations and Departmental Net Financial Position as follows:
(in thousands of dollars)
Common services provided without charge by other government departments (in thousands of dollars)
|
2020 |
2019 |
| Accommodation |
8,537 |
8,733 |
| Employer's contribution to the health and dental insurance plans |
5,570 |
4,891 |
| Total common services provided without charge from other government departments |
14,107 |
13,624 |
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as payroll and cheque issuance services provided by Public Services and Procurement Canada, information technology services provided by Shared Services Canada are not included in the School's Statement of Operations and Departmental Net Financial Position.
(b) Other transactions with related parties
(in thousands of dollars)
Other transactions with related parties (in thousands of dollars)
|
2020 |
2019 |
| Expenses — Other Government departments and agencies |
19,743 |
21,885 |
| Revenues — Other Government departments and agencies |
6,819 |
6,333 |
Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).
9. Transfers from/to other government departments
The School transferred assets to other departments:
- accounts receivable relating to salary overpayments as a result of the transfer of these employees to other government departments; and
- a tangible capital asset to Veterans Affairs Canada.
(in thousands of dollars)
Transfers from/to other government departments (in thousands of dollars)
|
2020 |
2019 |
| Accounts receivable and advances (note 6) |
170 |
16 |
| Tangible capital asset (net book value) (note 7) |
3 |
|
| Total assets transferred |
173 |
16 |
10. Segmented information
Presentation by segment is based on the School's core responsibility. The presentation by segment is based on the same accounting policies as described in the Summary of significant policies in note 2. The following table presents the expenses incurred and revenues generated for the main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:
(in thousands of dollars)
Segmented information (in thousands of dollars)
|
Learning Services |
Internal Services |
2020 |
2019
(restated note 11) |
| Operating expenses |
Salaries and employee benefits |
56,915 |
19,191 |
76,106 |
70,099 |
Professional and special services |
8,457 |
3,028 |
11,485 |
13,071 |
Accommodation |
6,403 |
2,134 |
8,537 |
8,733 |
Transportation and telecommunications |
2,181 |
250 |
2,431 |
2,366 |
Amortization of tangible capital assets |
2,139 |
293 |
2,432 |
1,525 |
Rentals |
919 |
127 |
1,046 |
705 |
Printing and publishing |
657 |
211 |
868 |
1,201 |
Small equipment and parts |
62 |
116 |
178 |
661 |
Utilities, materials and supplies |
185 |
132 |
317 |
337 |
Repair and maintenance |
8 |
36 |
44 |
272 |
Other operating expenses |
(4,225) |
(1,659) |
(5,884) |
(3,821) |
| Total expenses |
73,701 |
23,859 |
97,560 |
95,149 |
| Revenues |
Sales of Goods and Services |
6,911 |
|
6,911 |
6,424 |
Other Revenues |
|
1 |
1 |
2 |
| Total revenues |
6,911 |
1 |
6,912 |
6,426 |
| Net cost from continuing operations before government funding and transfers |
66,790 |
23,858 |
90,648 |
88,723 |
11. Comparative information
Certain comparative figures have been reclassified to conform to the current year's presentation.
- Date modified:
