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Financial Statements 2010–2011 (Unaudited)

For the year ended March 31, 2011

Table of Contents


Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011 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 based on Canadian generally accepted accounting principles for the public sector.

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 in the preparation of the Public Accounts of Canada, and included in the School'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, 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 department.

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

The financial statements of the School have not been audited.

Original signed by
Guy Mc Kenzie
Deputy Minister/President
Canada School of Public Service
Original signed by
Chantale Cousineau-Mahoney
Vice-President and Chief Financial Officer
Corporate Management and Registration Services Branch

Ottawa, Ontario
June 17, 2011


Statement of Financial Position (Unaudited)
For the year ended March 31, 2011

(in thousands of dollars)

Read down the first column for a listing of financial assets and liabilities. Read across to the right for the amounts in thousands of dollars for 2011 and 2010.
  2011 Restated
(Note 11)
2010
Financial assets:
Due from the Consolidated Revenue Fund 11,387 12,238
Accounts receivable and advances (Note 4) 2,409 2,080
Total financial assets 13,796 14,318
Non-financial assets:
Prepaid expenses 290 763
Tangible capital assets (Note 5) 6,034 7,246
Total non-financial assets 6,324 8,009
Total assets 20,120 22,327
Liabilities:
Accounts payable and accrued liabilities (Note 6) 13,194 13,999
Vacation pay and compensatory leave 3,150 3,253
Employee future benefits (Note 7) 12,911 14,824
Other liabilities 32 16
Total liabilities 29,287 32,092
Equity of Canada (9,167) (9,765)
Total liabilities and Equity of Canada 20,120 22,327

Contractual obligations (Note 8)

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

Original signed by
Guy Mc Kenzie
Deputy Minister/President
Canada School of Public Service
Original signed by
Chantale Cousineau-Mahoney
Vice-President and Chief Financial Officer
Corporate Management and Registration Services Branch

Ottawa, Ontario
June 17, 2011


Statement of Operations (Unaudited)
For the year ended March 31, 2011

(in thousands of dollars)

Read down the first column for expenses and revenues divided by category. Read across to the right for the amounts in thousands of dollars for 2011 and 2010
  2011 2010
Expenses:
Foundational Learning 81,503 86,494
Organizational Leadership Development 20,082 21,244
Public Service Management Innovation 11,634 12,140
Internal Services 30,921 31,866
Total expenses 144,140 151,744
Revenues:
Foundational Learning 58,130 55,599
Organizational Leadership Development 10,079 10,408
Public Service Management Innovation 2,915 3,797
Internal Services 571 196
Total revenues 71,695 70,000
Net cost of operations 72,445 81,744

Segmented information (Note 10)

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

Statement of Equity of Canada (Unaudited)
For the year ended March 31, 2011

(in thousands of dollars)

Read down the first column for equity of Canada divided by category. Read across to the right for the amounts in thousands of dollars for 2011 and 2010
  2011 Restated
(Note 11)
2010
Equity of Canada, beginning of year (9,765) (11,313)
Net cost of operations (72,445) (81,744)
Net cash provided by Government 58,003 70,859
Change in due from the Consolidated Revenue Fund (851) (3,277)
Services provided without charge by other government departments (Note 9) 15,891 15,710
Equity of Canada, end of year (9,167) (9,765)

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

Statement of Cash Flow (Unaudited)
For the year ended March 31, 2011

(in thousands of dollars)

Read down the first column for categories of operating activities, cash used in operating activities and net cash provided by the Government of Canada. Read across to the right for the amounts in thousands of dollars for 2011 and 2010
  2011 2010
Operating Activities
Net cost of operations 72,445 81,744
Non-cash items:
Amortization of tangible capital assets (Note 5) (1,468) (1,066)
Loss on disposal of tangible capital assets (6) -
Services provided without charge by other government departments (Note 9) (15,891) (15,710)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and accountable advances 329 416
Increase (decrease) in prepaid expenses (473) 763
Decrease (increase) in accounts payable and accrued liabilities 805 2,755
Decrease (increase) in vacation pay and compensatory leave 103 (1,113)
Decrease (increase) in employee future benefits 1,913 (1,902)
Decrease (increase) in other liabilities (16) (14)
Cash used in operating activities 57,741 65,873
Capital investing activities:
Acquisitions of tangible capital assets (Note 5) 272 5,018
Transfer of tangible capital assets (10) (32)
Cash used in capital investing activities 262 4,986
Net cash provided by Government of Canada 58,003 70,859

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

Notes to the Financial Statements (Unaudited)

1. Authorities 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, gives the School a broader mandate as a public institution. The School reports to the President of the Treasury Board, through a Board of Governors made up of representatives from the private and public sectors.

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 program activities 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 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 curriculum that focuses on the key skills and knowledge required by a dynamic public service that is constantly changing and adapting to the needs of its stakeholders and Canadians. At the same time, the School also relies on the consistency of its training and learning activities to ensure that public service employees have the common skills and knowledge expected of them.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.

Significant accounting policies are as follows:

  1. Parliamentary authorities
    The School is financed 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 the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the 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 Government.

  3. Due from the CRF
    Amounts due from 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 appropriations to discharge its liabilities.

  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 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, 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 (The Plan), a multi-employer pension plan administered by the Government. The School's contributions to the Plan are charged to expenses in the year incurred and represent the School's total 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 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.

  7. 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.

  8. 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 department does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

    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:

    Read down the first column for the asset class, 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 Vehicles 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 they become available for use.

  9. 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. 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 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.

3. Parliamentary Authorities

The School receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations 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:

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

    (in thousands of dollars)

    Read down the first column for the net cost of operations, divided by category. Read across to the right for the amounts, in thousands of dollars, for 2011 and 2010.
      2011 2010
    Net cost of operations 72,445 81,744
    Adjustments for items affecting net cost of operations but not affecting authorities:
    Add (Less):
    Revenues 71,695 70,000
    Services provided without charge by other government departments (15,891) (15,710)
    Decrease (increase) in employee future benefits 1,913 (1,902)
    Loss on disposal of tangible capital assets (6) -
    Amortization of tangible capital assets (1,468) (1,066)
    Decrease (increase) in vacation pay and compensatory leave 103 (1,113)
    Other 44 598
    Sub-total 56,390 50,807
    Adjustments for items not affecting net cost of operations but affecting authorities:
    Add (Less):
    Acquisition of tangible capital assets (Note 5) 272 4,996
    Variation in prepaid expenses (473) 763
    Variation in advances - (40)
    Sub-total (201) 5,719
    Current year authorities used 128,634 138,270
  2. Authorities provided and used

    (in thousands of dollars)

    Read down the first column for the authorities provided and used, divided by category. Read across to the right for the amounts, in thousands of dollars, for 2011 and 2010.
      2011 2010
    Authorities provided:
    Vote 35 - Program expenditures 57,756 65,232
    Less:
    Lapsed authorities (6,174) (7,215)
    Total authorities used 51,582 58,017
    Statutory authorities:
    Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act 65,087 68,013
    Contributions to employee benefit plans 11,964 12,238
    Spending of proceeds from the disposal of surplus Crown assets 1 2
    Total statutory authorities used 77,052 80,253
    Current year authorities used 128,634 138,270

4. Accounts Receivable and Advances

The following table presents details of the School's accounts receivable and advances (in thousands of dollars):

(in thousands of dollars)

Read down the first column for receivables and advances, divided by category. Read across to the right for the amounts, in thousands of dollars, for 2011 and 2010
  2011 2010
Receivables - other government departments and agencies 1,823 1,588
Receivables - external parties 597 506
Employee and other advances 40 18
Sub-total 2,460 2,112
Allowance for doubtful accounts on receivables from external parties (51) (32)
Total 2,409 2,080

5. Tangible Capital Assets

Cost (in thousands of dollars)

Read across to the right for the amounts, in thousands of dollars, for opening balance, acquisitions, transfers, adjustments, disposals and write-offs, and closing balances
  Opening Balance Acquisitions Transfers,
Adjustments,
Disposals and
Write-Offs
Closing Balance
Machinery and Equipment 1,051 47 - 1,098
Other Equipment (including furniture) 151 - - 151
Informatics Hardware 68 187 (22) 233
Software (including developed software) 3,386 12 6,240 9,638
Motor Vehicles 30 26 (30) 26
Leasehold Improvements 658 - - 658
Assets Under Construction 6,240 - (6,240) -
Total 11,584 272 (52) 11,804

Accumulated Amortization (in thousands of dollars)

. Read down the first column for accumulated amortization, divided by category. Read across to the right for amounts, in thousands of dollars, for the opening balance, acquisitions, transfers, adjustments, disposals and write-offs, and closing balances
  Opening Balance Acquisitions Transfers,
Adjustments,
Disposals and
Write-Offs
Closing Balance
Machinery and Equipment 619 194 - 813
Other Equipment (including furniture) 64 19 - 83
Informatics Hardware 49 8 (22) 35
Software (including developed software) 3,284 1,173 - 4,457
Motor Vehicles 9 9 (14) 4
Leasehold Improvements 313 65 - 378
Total 4,338 1,468 (36) 5,770

Net Book Value (in thousands of dollars)

Read down the first column for the net book value, divided by category. Read across to the right for amounts, in thousands of dollars, for 2010 and 2011. There is an important note below the table.
  2010 2011
Machinery and Equipment 432 285
Other Equipment (including furniture) 87 68
Informatics Hardware 19 198
Software (including developed software) 102 5,181
Motor Vehicles 21 22
Leasehold Improvements 345 280
Assets Under Construction 6,240 -
Total 7,246 6,034

Transfer of assets under construction represents assets that were put into use in the year and have been transferred to Software.

6. Accounts Payable and Accrued Liabilities

The following table presents details of the School's accounts payable and accrued liabilities:

School's accounts payable and accrued liabilities (in thousands of dollars)

Read down the first column for the accounts payable, divided by category. Read across to the right for amounts, in thousands of dollars, for 2010 and 2011.
  2011 2010
Accounts payable - other government departments and agencies 7,103 8,237
Accounts payable - external parties 3,334 3,661
Total accounts payable 10,437 11,898
Accrued liabilities 2,757 2,101
Total 13,194 13,999

7. Employee Future Benefits

  1. Pension benefits
    The School's employees participate in the Public Service Pension Plan (The Plan), which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of two 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 Plan benefits and they are indexed to inflation.

    Both the employees and the School contribute to the cost of the Plan. The 2010-11 expense amounts to $8,399,036 ($8,835,674 in 2009-10), which represents approximately 1.9 times (1.9 times in 2009-10) 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. Severance benefits
    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 authorities. Information about the severance benefits, measured as at March 31, is as follows:

    Severance benefits (in thousands of dollars)

    Read down the first column for benefits, divided by category. Read across to the right for amounts, in thousands of dollars, for 2011 and 2010.
      2011 2010
    Accrued benefit obligation, beginning of year 14,824 12,922
    Expense for the year (789) 3,667
    Benefits paid during the year (1,124) (1,765)
    Accrued benefit obligation, end of year 12,911 14,824

8. 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 are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:

Contractual Obligations (in thousands of dollars)

Read down the first column for the estimated contractual obligations, starting in 2012. Read across to the right for goods and services, operating leases, and total amounts (in thousands of dollars).
  Goods and Services Operating Leases Total
2012 - 878 878
2013 - 890 890
2014 - 903 903
2015 - 915 915
2016 and thereafter - 243 243
Total - 3,829 3,829

9. 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 which were obtained without charge from other Government departments as disclosed below.

  1. 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, legal services 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 as follows:

    Services Without Charge (in thousands of dollars)

    Read down the first column for services, divided by category. Read across to the right for amounts, in thousands of dollars, for 2011 and 2010.
      2011 2010
    Accommodation 9,860 9,703
    Employer's contribution to the health and dental insurance plans 6,031 6,003
    Legal services - 4
    Total 15,891 15,710

    The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes 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 the payroll and cheque issuance services provided by Public Works and Government Services Canada are not included in the School's Statement of Operations.

  2. Other transactions with related parties

    Other transactions with related parties (in thousands of dollars)

    Related transactions with related parties. Read down the first column for transaction, divided by category. Read across to the right for amounts, in thousands of dollars, for 2011 and 2010.
      2011 2010
    Expenses - Other Government departments and agencies 26,947 26,137
    Revenues - Other Government departments and agencies 69,769 67,982

10. Segmented Information

Presentation by segment is based on the School's program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

Expenses and Revenues (in thousands of dollars)

Read down the first column for the list of program activities, total operating expenses, total expenses, total revenues, and net cost of operations. Read across to the right for amounts (in thousands of dollars) for foundational learning, organizational leadership development, public sector management innovation, internal services, and the totals for 2011 and 2010.
  Foundational Learning Organizational Leadership Development Public Sector Management Innovation Internal Services 2011 2010
Transfer payments - - 254 - 254 288
Operating expenses:
Salaries and employee benefits 48,230 11,955 6,668 20,083 86,936 91,651
Professional and special services 20,932 4,446 2,517 5,749 33,644 35,954
Rental of accommodation and equipment 7,650 2,043 1,196 3,331 14,220 13,606
Transportation and telecommunications 2,089 975 434 623 4,121 4,507
Utilities, materials and supplies 780 238 82 347 1,447 1,677
Small equipment and parts 264 15 6 390 675 1,509
Printing and publishing 630 66 342 - 1,038 1,306
Amortization of tangible capital assets 821 204 119 324 1,468 1,066
Repair and maintenance 93 22 13 67 195 164
Other operating expenses 14 118 3 1 136 16
Loss on disposal of tangible capital assets - - - 6 6 -
Total operating expenses 81,503 20,082 11,380 30,921 143,886 151,456
Total expenses 81,503 20,082 11,634 30,921 144,140 151,744
Revenues:
Sales of Goods and Services 58,130 10,079 2,915 530 71,654 69,936
Other Revenues - - - 41 41 64
Total revenues 58,130 10,079 2,915 571 71,695 70,000
Net cost of operations 23,373 10,003 8,719 30,350 72,445 81,744

11. Adoption of New Accounting Policies

During the year, the School adopted the revised Treasury Board Accounting Standard (TBAS) 1.2: Departmental and Agency Financial Statements, which is effective for the School for the 2010-11 fiscal year. The major change in the accounting policies of the School, required by the adoption of the revised TBAS 1.2, is the recording of amounts due from the Consolidated Revenue Fund as an asset on the Statement of Financial Position.

The adoption of the new Treasury Board accounting standard has been accounted for retroactively with the following impact on the comparatives for 2009-10:

Statement of Financial Position

(in thousands of dollars)

Read down the first column for the item that interests you, then across to the right for the figures for 2010 (as previously stated), effect of the adjustment, and 2010 (revised amount).
  2010
As previously stated
Effect of the
Adjustment
2010
Revised Amount
Assets 10,089 12,238 22,327
Equity of Canada (22,003) 12,238 (9,765)

12. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.

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