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Financial Statements 2009–2010 (Unaudited)

For the year ended March 31, 2010

Table of Contents


Statement of Management Responsibility

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 Canada School of Public Service ("the School"). These unaudited 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 information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgement and gives due consideration to materiality. To fulfil 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 to the Public Accounts of Canada and included in the School's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act and the Canada School of Public Service Act, are executed in accordance with prescribed regulations, within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the department.

The purpose of the Canada School's Departmental Audit Committee is to ensure the Deputy Minister (DM) has independent, objective advice, guidance, and assurance on the adequacy of the Canada School's control and accountability processes. In providing this support to the DM, the Audit Committee exercises active oversight of core areas of control and accountability in an integrated and systematic way. The presence of Board members on the Committee enhances the efficacy of the oversight roles, as key issues considered by the Audit Committee are also reported to the Board. The integrated support and advice provided by these oversight bodies strengthens the Canada School's approach to achieving excellence in financial management.

The financial statements of the department have not been audited.


Original signed by:

Guy Mc Kenzie
Deputy Minister/President

Original signed by:

Chantale Cousineau-Mahoney
Chief Financial Officer


Ottawa, Ontario
August 12, 2010

Statement of Operations (Unaudited)
For the year ended March 31, 2010

(in thousands of dollars)

Statement of operations (unaudited) for the year ended March 31, 2010. Read down the first column for transfer payments, operating expenses (by category), total operating expenses, total expenses, revenues, total revenues, and net cost of operations. Read across to the right for the 2010 amounts (in thousands of dollars) for the Learning Services Program, Leadership Program, Innovation Program, total amounts for 2010, and total amounts for 2009. Total operating expenses are further down the first column, followed by total expenses and total revenues. The last row at the bottom of the table lists net cost of operations. There is an important note below the table.
2010 2009
  Learning
Services
Program
Leadership
Program
Innovation
Program
Total Total
Transfer payments - - 288 288 375
 
Operating expenses
Salaries and employee benefits 65,468 12,657 13,526 91,651 86,997
Professional and special services 26,443 5,055 4,456 35,954 41,953
Rental of accommodation and equipment 9,865 1,214 2,527 13,606 13,863
Transportation and telecommunications

2,954

893 660 4,507 5,907
Utilities, materials and supplies 1,111 311 255 1,677 2,402
Small equipment and parts 1,350 53 106 1,509 3,062
Printing and publishing 953 91 262 1,306 1,174
Amortization of tangible capital assets 789 85 192 1,066 1,086
Repair and maintenance 126 12 26 164 744
Other operating expenses 10 3 3 16 118
Loss on write-off of tangible capital assets 0 0 0 0 147
Total Operating expenses 109,069 20,374 22,013 151,456 157,453
 
Total Expenses 109,069 20,374 22,301 151,744 157,828
 
Revenues
Sales of Goods and Services 55,697 10,419 3,820 69,936 66,785
Other Revenues 48 5 11 64 32
Total Revenues 55,745 10,424 3,831 70,000 66,817
 
Net Cost of Operations 53,324 9,950 18,470 81,744 91,011

The accompanying notes form an integral part of these financial statements.

Statement of Financial Position (Unaudited)
At March 31, 2010

(in thousands of dollars)

Statement of financial position (unaudited) at March 31, 2010. Read down the first column for assets, liabilities, divided by category. Read across to the right for amounts for 2010 and 2009 in thousands of dollars. The first half of the table contains information on assets, with the totals for 2010 and 2009 displayed halfway down the table. The second half of the table contains information on liabilities, with total liabilities displayed for 2010 and 2009 five rows from the bottom. Equity of Canada for 2010 and 2009 is displayed three rows from the bottom, and the last row displays totals for 2010 and 2009. There is an important note below the table.
2010 2009
Assets
 
Financial assets
Accountable advances 18 48
 
Non-financial assets
Prepaid expenses 763 0
Tangible capital assets (Note 4) 7,246 3,326
Total non-financial assets 8,009 3,326
Accounts receivable 2,062 1,616
Total financial assets 2,080 1,664
 
Total 10,089 4,990
 
Liabilities
 
Accounts payable and accrued liabilities 13,999 16,755
Vacation pay and compensatory leave 3,253 2,140
Employee severance benefits (Note 5) 14,824 12,922
Other liabilities 16 1
Total liabilities 32,092 31,818
 
Equity of Canada (22,003) (26,828)
 
Total 10,089 4,990

Contractual obligations (Note 6)
The accompanying notes form an integral part of these financial statements.

Statement of Equity of Canada (Unaudited)
For the year ended March 31, 2010

(in thousands of dollars)

Statement of Equity of Canada (Unaudited) for the year ended March 31, 2010. The second row displays amounts (in thousands of dollars) for the equity of Canada, beginning of year, for 2010 and 2009. Rows three through six display different equity categories and the associated amounts for 2010 and 2009. The last row displays amounts (in thousands of dollars) for the equity of Canada, end of year, for 2010 and 2009. There is an important note below the table.
2010 2009
Equity of Canada, beginning of year (26,828) (20,954)
Net cost of operations (81,744) (91,011)
Current year appropriations used (Note 3a) 138,270 139,729
Change in net position in the Consolidated
Revenue Fund (Note 3c)
(67,411) (69,392)
Services provided without charge from other
government departments (Note 7)
15,710 14,800
Equity of Canada, end of year (22,003 ) (26,828)

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flow (Unaudited)
For the year ended March 31, 2010

(in thousands of dollars)

Statement of Cash Flow (Unaudited) for the year ended March 31, 2010. The first half of the table displays the amounts (in thousands of dollars) for operating activities in 2010 and 2009. The cash used by operating activities, in 2010 and 2009, is displayed in row fourteen. The second half of the table displays the amounts (in thousands of dollars) for capital investment activities in 2010 and 2009. The cash used by capital investment activities (in thousands of dollars) in 2010 and 2009 is displayed in the third last row from the bottom. The last row of the table displays the net cash provided by the Government of Canada (in thousands of dollars) in 2010 and 2009. There is an important note below the table.
2010 2009
Operating Activities
Net cost of operations 81,744 91,011
Non-cash items:
Amortization of tangible capital assets (1,066) (1,086)
Loss on write-off of tangible capital assets - (147)
Services provided without charge (15,710) (14,800)
 
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and accountable advances 416 (3,917)
Increase (decrease) in prepaid expenses and inventories 763 (3)
(Increase) in liabilities (274) (2,222)
 
Cash used by operating activities 65,873 68,836
 
Capital Investment Activities (Note 4)
Net cost of acquisition of tangible capital assets 5,018 1,551
(Decrease) due to adjustment to tangible capital assets - (50)
Transfer of tangible capital assets with no monetary impact (32) -
Cash used by capital investment activities 4,986 1,501
 
Net cash provided by Government of Canada 70,859 70,337

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)
For the year ended March 31, 2010

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, through a Board of Governors made up of representatives of the private and public sectors.

The School is the common learning service provider for the Public Service of Canada. It brings a unified approach to serving the common learning and development needs of public servants and helps ensure that all public service employees across Canada have the knowledge and skills they need to meet the employer's knowledge standard and deliver results for Canadians.

Through its programming, the School delivers on its legislative mandate to encourage pride and excellence in public service and to foster a common sense of purpose, values and traditions. It helps to ensure that public servants have the knowledge, competencies and skills they need to serve Canada and Canadians and supports the growth and development of public servants committed to the service of Canada. The School assists deputy heads in meeting their organization's learning needs and pursues excellence in public sector management and public administration.

2. Summary of Significant Accounting Policies

These 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:

  1. Parliamentary appropriations – The School is primarily financed by the Government of Canada through Parliamentary appropriations. Financial reporting for appropriations provided to the School 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 in the statement of financial position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the two bases of reporting.
  2. 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 federal government.
  3. Change in net position in the Consolidated Revenue Fund – It represents the difference between the net cash provided by Government and appropriations used in a year, excluding the amount of non respendable revenue recorded by the department. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.
  4. Revenues – Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
  5. Expenses – Expenses are recorded on the accrual basis:
    • Vacation leave – Vacation leave is expensed as the benefits accrue to the employees under their respective terms of employment. The liability for vacation leave is calculated at the salary levels in effect at the end of the year for all unused vacation balances.
    • Services provided without charge – Services provided without charge by other government departments for accommodation, legal services, and the employer's contribution to the health and dental insurance plans are recorded as operating expenses, at their estimated cost, in the statement of operations. A corresponding amount is reported directly in the Statement of Equity of Canada.
  6. Employee future benefits
    • Pension benefits – Eligible employees participate in the Public Service Pension Plan, a multiemployer 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 School's obligation to the Plan. Current legislation does not require the School to make contributions for any actuarial deficiencies of the Plan.
    • 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 related 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. Employee severance benefits on cessation of employment represent obligations of the department that are normally funded through future year appropriations.
  7. Accounts receivable – Accounts receivable are stated at amounts expected to be ultimately realized. A provision is made for receivables where recovery is considered uncertain.
  8. Tangible capital assets – All tangible capital assets (including leasehold improvements) having an initial cost of $5,000 or more are recorded at their acquisition cost less accumulated amortization. Similar items under $ 5,000 are expensed in the statement of operations.

    Amortization of tangible capital assets is taken the first month following the date of the acquisition 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:

    Asset class

    Tangible capital assets. The first column displays the categories of asset classes. Read across to the right for the useful life of each category (in years).
    Asset class Useful life
    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 represent the purchase of Integrated Learning Management Software still under development as of March, 31st, 2010.

  9. Measurement uncertainty – The preparation of these financial statements in accordance with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of expenses and revenues during the reporting period. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant estimates used are the useful life of tangible capital assets and the liability for employee severance benefits.

Actual results could differ from those estimates. 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 Appropriations

The School receives most of its funding through Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. Accordingly, the 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:

  1. Reconciliation of net cost of operations to current year appropriations used

    (in thousands of dollars)

    Reconciliation of net cost of operations to current year appropriations used, in thousands of dollars. The second row of the table displays net cost of operations (in thousands of dollars) for 2010 and 2009. The following rows list categories of adjustments for items affecting net cost of operations but not affecting appropriations. The totals for all of these categories, for 2010 and 2009, are displayed in row twelve. The bottom half of the table lists categories of adjustments for items not affecting net cost of operations but affecting appropriations. The totals (in thousands of dollars) for those adjustments are in row nineteen. The current year appropriations used (in thousands of dollars) for 2010 and 2009 are displayed in the last row of the table.
    2010 2009
    Net cost of operations 81,744 91,011
    Adjustments for items affecting net cost of operations but not affecting appropriations
    Add (Less):
    Revenues 70,000 66,817
    Services provided without charge (15,710) (14,800)
    Employee severance benefits (1,902) (2,916)
    Loss on write-off of tangible capital assets - (147)
    Amortization of tangible capital assets (1,066) (1,086)
    Vacation leave

    (1,113)

    (1,339)
    Other 598 (93)
      50,807 46,436
     
    Adjustments for items not affecting net cost of operations but affecting appropriations
    Add (Less):
    Acquisition of tangible capital assets 4,996 1,551
    Prepaid expenses 763 -
    Other (40) 731
      5,719 2,282
     
    Current year appropriations used 138,270 139,729
  2. Reconciliation of Parliamentary appropriations provided to current year appropriations used

    (in thousands of dollars)

    Reconciliation of Parliamentary appropriations provided to current year appropriations used, in thousands of dollars. The third row of the table displays the program expenditures (Vote 35) for 2010 and 2009. The total appropriations used for 2010 and 2009 are listed in row seven. The second half of the table lists the statutory authorities for 2010 and 2009. Row twelve displays the total statutory authorities used in 2010 and 2009, and the current year appropriations used for 2010 and 2009 are displayed in the last row of the table.
    2010 2009
    Parliamentary Appropriations Voted:
    Program expenditures (Vote 35) 65,232 66,861
     
    Less:
    Lapsed appropriation – Program expenditures (vote 35) (7,215) (8,523)
    Total appropriations used 58,017 58,338
    Statutory authorities:
    Spending of revenues pursuant to subsection 18 (2) of the Canada School of Public Services Act 68,013 71,085
    Contributions to employee benefit plans 12,238 10,304
    Spending of proceeds from the disposal of surplus Crown assets 2 2
    Total Statutory Authorities used 80,253 81,391
    Current year appropriations used 138,270 139,729
  3. Reconciliation of net cash provided by Government to current year appropriations used

    (in thousands of dollars)

    Reconciliation of net cash provided by Government to current year appropriations used, in thousands of dollars. The second row of the table displays the net cash provided by Government in 2010 and 2009. Rows four through eight display the change in net position in the Consolidated Revenue Fund, with the totals for 2010 and 2009 displayed in row nine. The current year appropriations used for 2010 and 2009 are displayed in the last row of the table.
    2010 2009
    Net cash provided by Governmen 70,859 70,337
     
    Change in net position in the Consolidated Revenue Fund
    Revenues 70,000 66,817
    Variation in accounts receivable and accountable advances (416) 3,917
    Variation in accounts payable and other liabilities (2,741) (2,033)
    Other adjustments 568 691
      67,411 69,392
     
    Current year appropriations used 138,270 139,729

4. Tangible Capital Assets

(in thousands of dollars)

Tangible capital assets, in thousands of dollars. Read down the first column for the categories of tangible capital assets. Read across to the right for the Cost categories in 2010 (columns two to six), and then the categories of accumulated amortization (columns seven to twelve). The net book value for 2010 is displayed in column thirteen, and the net book value for 2009 is displayed in column fourteen, the last column. The totals for all categories are displayed in the last row of the table.
2010 2009
Cost Accumulated Amortization Net
book
value
Net
book
value
Opening Balance Asset Reclas-
sification
Acqui-
sitions
Disposals and write-offs Closing Balance Opening Balance Asset Reclas-
sification
Amortization Acqui-
sitions
Disposals and write-offs Closing Balance
Machinery and Equipment 11 1,018 22   1,051 10 420 189     619 432 1
Other Equipment (including furniture) 376 (238) 13   151 218 (173) 19     64 87 158
Informatics Hardware 838 (780) 10   68 289 (247) 7     49 19 549
Software (including developed software) 3,386       3,386 2,504   780     3,284 102 882
Motor Vehicle (1) 30   66 (66) 30 27   7 9 (34) 9 21 3
Leasehold Improvements 658       658 249   64     313 345 409
Assets Under Construction 1,324   4,916   6,240 0   0     0 6,240 1,324
Total 6,623 0 5,027 (66) 11,584 3,297 0 1,066 9 (34) 4,338 7,246 3,326

Amortization expense for the year ended March 31, 2010 is $1,066 (2009 - $1,086).

5. Employee Future Benefits

  1. Pension benefits

    The School and all eligible employees contribute to 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 Canada/Québec Pension Plans benefits and they are indexed to inflation.

    The 2009-10 expense amounts to $2,284,793 ($1,906,234 in 2008-09), which represents approximately 1.9 times (2.0 in 2008-09) the contributions by employees.

    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.

  2. Employee severance benefits

    The School provides severance benefits to its employees based on eligibility, years of service and final salary. The severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31 is as follows:

    (in thousands of dollars)

    Employee severance benefits, measured as at March 31, in thousands of dollars. Read down the first column for the category of benefit that interests you. Read across to the right for the dollar amount for 2010 and 2009 in that category. The total end of year accrued benefit obligations for 2010 and 2009 are displayed in the last row of the table.
    2010 2009
    Accrued benefit obligation, beginning of year 12,922 10,006
    Expense for the year 3,667 3,725
    Benefits paid during the year (1,765) (809)
    Accrued benefit obligation, end of year 14,824 12,922

6. Contractual Obligations

The nature of the School's activities can result in some large multi-year contracts and obligations whereby it will be obligated to make future payments when the services will be rendered or goods received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

(in thousands of dollars)

Contractual obligations, in thousands of dollars. The first column displays two categories of contractual obligations (goods and services and operating leases). Read across to the right for the dollar amounts for 2011, 2012, 2013, and 2014. The sixth column displays the amounts for 2015 and thereafter. The seventh and last column displays the totals for the two categories. The totals for all years are displayed in the last row at the bottom of the table.
2011 2012 2013 2014 2015
and
thereafter
Total
Goods and services 3,475 787 97 14 9 4,382
Operating leases 1,300 1,300 1,300 1,300 1,300 6,500
Total 4,775 2,087 1,397 1,314 1,309 10,882

7. Related Party Transactions

The School is related as a result of common ownership to all Government of Canada departments, agencies and Crown corporations. The School enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the School received services which were obtained without charge from other Government departments and agencies as presented in part (a).

  1. Services provided without charge

    The costs of these services have been recognized as an expense in the School's Statement of Operations as follows:

    (in thousands of dollars)

    Related party transactions, services provided without charge, in thousands of dollars. The first column displays categories of services provided without charge. Read across to the right for the amounts for 2010 and 2009. The totals for 2010 and 2009 are displayed in the last row at the bottom of the table.
    2010 2009
    Accommodation received from Public Works and Government Services Canada (PWGSC) 9,703 9,108
    Contributions covering employer's share of employees'insurance premiums and expenditures paidby Treasury Board Secretariat (TBS) 6,003 5,692
    Legal Services (Justice Canada) 4 0
    Total 15,710 14,800
    The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The cost 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 School's Statement of Operations.

  2. Payables and receivables outstanding at year-end with related parties

    (in thousands of dollars)

    Payables and receivables outstanding at year-end with related parties, in thousands of dollars. The first column displays the accounts receivable and accounts payable. Read across to the right for the amounts for 2010 and 2009.
    2010 2009
    Accounts receivable from other government departments and agencies 1,588 1,193
    Accounts payable to other government departments and agencies 8,237 5,899

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