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Future-Oriented Financial Statements 2013–2014 (Unaudited)

For the years ending March 31, 2013 and March 31, 2014

Statement of Management Responsibility

Responsibility for the compilation, content and presentation of the accompanying future-oriented financial information for years ending March 31, 2013 and 2014 rests with departmental management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and will be used in the School's Departmental Performance Report to compare with actual results.

Management is responsible for the information contained in future-oriented financial statements and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates and judgment, and gives due consideration to materiality. At the time of preparation of the future-oriented financial statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material.



Original signed by:
Linda Lizotte-MacPherson
Deputy Minister/President
Original signed by:
Jim Saunderson
Acting Vice-President and
Chief Financial Officer
Corporate Management and Registration Services Branch

Ottawa, Ontario
March 15, 2013

Future-Oriented Statement of Financial Position

Future-Oriented Statement of Financial Position as at March 31 in thousands of dollars. Read down the first column for Liabilities, Financial assets, Departmental net debt, Non- financial assets and Departmental net financial position, then to the right for the figures for 2014 and 2013.
As at March 31
(in thousands of dollars)
2014 2013
Liabilities
Accounts payable and accrued liabilities Endnotes7 4,961 5,599
Vacation pay and compensatory leave 1,864 1,899
Employee future benefits Endnotes9 1,245 3,037
Total liabilities 8,070 10,535
 
Financial assets
Due from the Consolidated Revenue Fund 3,452 3,922
Accounts receivable and advances Endnotes6 1,026 1,140
Total financial assets 4,478 5,062
 
Departmental net debt 3,592 5,473
 
Non-financial assets
Tangible capital assets Endnotes8 3,166 3,849
Total non-financial assets 3,166 3,849
 
Departmental net financial position (426) (1,624)

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



Original signed by:
Linda Lizotte-MacPherson
Deputy Minister/President
Original signed by:
Jim Saunderson
Acting Vice-President and
Chief Financial Officer
Corporate Management and Registration Services Branch

Ottawa, Ontario
March 15, 2013

Future-Oriented Statement of Operations and Departmental Net Financial Position

Future-Oriented Statement of Operations and Departmental Net Financial Position for the year ending March 31 in thousands of dollars. Read down the first column for Expenses, Revenues and the Net cost from continuing operations, Net cost of operations after government funding and transfers, Departmental net financial position – Beginning of year and Departmental net financial position – End of year, then to the right for the figures for 2014 and for 2013.
For the year ended March 31
(in thousands of dollars)
2014 2013
Expenses
Foundational learning 68,291 69,787
Organizational leadership development 11,437 11,589
Public sector management innovation 7,581 7,761
Internal services 24,960 23,793
Total expenses 112,269 112,930
 
Revenues
Sales of goods and services 50,000 50,000
 
Net cost from continuing operations 62,269 62,930
 
Government funding and transfers
Net cash provided by Government 49,132 58,533
Change in amount due from Consolidated Revenue Fund (471) (5,920)
Services provided without charge by other government departments Endnotes11 14,806 14,895
Net cost of operations after government funding and transfers (1,198) (4,578)
 
Departmental net financial position – Beginning of year (1,624) (6,202)
 
Departmental net financial position – End of year (426) (1,624)

See note Endnotes12 for segmented information.

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

Future-Oriented Statement of Change in Departmental Net Debt

Future-Oriented Statement of Change in Departmental Net Debt for the year ending March 31 in thousands of dollars. Read down the first column for Net cost of operations after government funding and transfers, Change due to tangible assets, Change due to prepaid expenses, Departmental net debt – Beginning of year and Departmental net debt – End of year, then to the right for the figures for 2014 and 2013.
For the year ended March 31
(in thousands of dollars)
2014 2013
Net cost of operations after government funding and transfers (1,198) (4,578)
 
Change due to tangible capital assets
Acquisition of tangible capital assets 1,111 1,095
Amortization of tangible capital assets (1,794) (1,776)
Total change due to tangible capital assets (683) (681)
 
Change due to prepaid expenses - (47)
 
Net decrease in departmental net debt (1,881) (5,306)
 
Departmental net debt – Beginning of year 5,473 10,779
 
Departmental net debt – End of year 3,592 5,473

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

Future-Oriented Statement of Cash Flow

Future-Oriented Statement of Cash Flow for the year ending March 31 in thousands of dollars. Read down the first column for Operating activities, Capital investing activities and Net cash provided by Government of Canada, then to the right for the figures for 2014 and for 2013.
For the year ended March 31
(in thousands of dollars)
2014 2013
 
Operating activities
Net cost of operations before government funding and transfers 62,269 62,930
 
Non-cash items
Amortization of tangible capital assets Endnotes8 (1,794) (1,776)
Services provided without charge by other government departments Endnotes11 (14,806) (14,895)
 
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and accountable advances (114) 129
Decrease in prepaid expenses - (47)
Decrease in accounts payable and accrued liabilities 638 6,656
Decrease in vacation pay and compensatory leave 35 1,106
Decrease in employee future benefits 1,792 3,324
Decrease (increase) in other liabilities - 11
Cash used in operating activities 48,020 57,438
 
Capital investing activities
Acquisition of tangible capital assets Endnotes8 1,111 1,095
Cash used in capital investing activities 1,111 1,095
 
Net cash provided by Government of Canada 49,132 58,533

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

Notes to the Future-Oriented Financial Statements

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 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. Underlying Assumptions

The Future-Oriented Financial Statements 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 forecast as at November 30, 2012, of estimated results for 2012-13;
  • on the basis of the revenue forecast of $50 million in 2013-14, 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 Canadian generally accepted accounting principles for the public sector;
  • on the basis that estimated year-end information for 2012-13 is used as the opening position for the 2013-14 planned results;
  • 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 2012-13 and 2013-14, actual results achieved are likely to vary from the forecast information presented, and this could be material.

Factors that could lead to material differences between the Future-Oriented Financial Statements and the historical financial statements include the impact of economic conditions on the amount of 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 Canada School of Public Service will not be updating the forecasts for any changes to appropriations.

4. Summary of Significant Accounting Policies [Return to note 4.]

The future-oriented financial information has 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 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 Financial Statements are based on accrual accounting. Consequently, items presented in the Future-Oriented Statement of Operations are not necessarily the same as those provided through appropriations from Parliament. Note 5 provides a reconciliation between the two reporting methodologies. Endnotes5

  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. Due from the Consolidated Revenue Fund (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 previous year's liabilities.

  4. Forecasted Revenues

    The School recognizes revenues based on the services anticipated to be provided for the year.

    The revenues are accounted for in the period in which the underlying transaction or event occurs that gives rise to the revenues.

  5. Forecasted Expenses

    Expenses to be recorded when the underlying transaction or expense occurred, subject to the following:

    Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.

    Services provided without charge by other government departments for accommodation and the employer's contribution to the health and dental insurance plans are recorded as operating expenses, at their estimated cost.

  6. Employee Future Benefits

    Pension Benefits
    Eligible employees participate in the Public Service Pension Plan, a multi-employer 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 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

    Accounts receivables 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 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.

  9. Measurement Uncertainty

    The preparation of the Future-Oriented Financial Statements requires management to make estimates and assumptions that affect the reported amounts of all the revenues, expenses, assets and liabilities. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency with the departmental mandate and strategic objectives. At the time of preparation of these Future-Oriented Financial Statements, 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.

5. Parliamentary Authorities [Return to note 5.]

The School receives a portion 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. 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 2014 and for 2013.
    (in thousands of dollars) 2014 2013
    Authorities requested
    Vote 40 – Program expenditures 42,231 42,344
     
    Statutory authorities
    Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act 50,000 50,000
    Contributions to employee benefits plan 6,233 6,192
    Funding from Carry Forward - 2,049
    Total statutory authorities to be used 56,233 58,241
     
    Current year authorities to be used 98,464 100,585

    Forecast authorities requested for the year ending March 31, 2014, are the planned spending amounts presented in the 2013-14 Report on Plans and Priorities. Estimated authorities requested for the year ending March 31, 2013, include amounts presented in the 2012-13 Main Estimates and Supplementary Estimates (A) and (B), planned for presentation in Supplementary Estimates (C) and estimates of amounts to be allocated at year-end from Treasury Board central votes.

  2. 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 2014 and for 2013.
    (in thousands of dollars) 2014 2013
    Net cost of operations before government funding and transfers 62,269 62,930
     
    Adjustments for items affecting net cost of operations but not affecting authorities
    Revenues 50,000 50,000
    Services provided without charge by other government departments (14,806) (14,895)
    Provision for severance benefits 1,792 3,324
    Amortization of tangible capital assets (1,794) (1,776)
    Provision for vacation pay and compensatory leave (108) (93)
    Other - 47
    Total adjustments for items affecting net cost of operations but not affecting authorities 35,084 36,607
     
    Adjustments for items not affecting net cost of operations but affecting authorities
    Acquisition of tangible capital assets Endnotes8 1,111 1,095
    Decrease in prepaid expenses - (47)
    Total adjustments for items not affecting net cost of operations but affecting authorities 1,111 1,048
     
    Current year authorities to be used 98,464 100,585

6. Accounts Receivable and Advances [Return to note 6.]

Accounts Receivable and Advances for the year ending March 31 in thousands of dollars. Read down the first column for the receivables and advances, then to the right for the figures for 2014 and for 2013.
(in thousands of dollars) 2014 2013
Receivables – Other government departments and agencies 755 839
Receivables – External parties 318 353
Total receivables 1,073 1,192
Allowance for doubtful accounts on receivables from external parties (47) (52)
Total accounts receivable and advances 1,026 1,140

7. Accounts Payable and Accrued Liabilities [Return to note 7.]

Accounts Payable and Accrued Liabilities for the year ending March 31 in thousands of dollars. Read down the first column for the Accounts payable and Accrued liabilities, then to the right for 2014 and for 2013.
(in thousands of dollars) 2014 2013
Accounts payable – Other government departments and agencies 2,844 3,333
Accounts payable – External parties 817 908
Total accounts payable 3,661 4,241
Accrued liabilities 1,300 1,358
Total accounts payable and accrued liabilities 4,961 5,599

8. Tangible Capital Assets [Return to note 8.]

Cost of Tangible Capital Assets for the year ending March 31 in thousands of dollars. Read down the first column of capital assets, then to the right for the figures for the Closing Balance for 2012, the Estimated Closing Balance for 2013 and the Forecasted Closing Balance for 2014.
Cost
(in thousands of dollars)
Closing
balance
2012
Estimated
closing
balance
2013
Forecasted
closing
balance
2014
Machinery and equipment 1,169 1,216 1,257
Other equipment (including furniture) 152 157 158
Informatics hardware 240 1,248 2,299
Software (including developed software) 9,638 9,642 9,646
Motor vehicles 26 57 71
Leasehold improvements 658 658 658
Total cost 11,883 12,978 14,089
Accumulated Amortization of Tangible Capital Assets for the year ending March 31 in thousands of dollars. Read down the first column of capital assets, then to the right for the figures for the Closing Balance for 2012, the Estimated Closing Balance for 2013 and the Forecasted Closing Balance for 2014.
Accumulated amortization
(in thousands of dollars)
Closing
balance
2012
Estimated
closing
balance
2013
Forecasted
closing
balance
2014
Machinery and equipment 989 1,172 1,185
Other equipment (including furniture) 95 107 120
Informatics hardware 77 295 698
Software (including developed software) 5,738 7,021 8,302
Motor vehicles 11 26 45
Leasehold improvements 443 508 573
Total accumulated amortization 7,353 9,129 10,923
Net Book Value of Tangible Capital Assets for the year ending March 31 in thousands of dollars. Read down the first column of capital assets, then to the right for the figures for the Net Book Value for 2012, the Estimated Net Book Value for 2013 and the Forecasted Net Book Value for 2014.
Net book value
(in thousands of dollars)
Closing
net book
value
2012
Estimated
closing
net book
value
Forecasted
closing
net book
value
2014
Machinery and equipment 180 44 72
Other equipment (including furniture) 57 50 38
Informatics hardware 163 953 1,601
Software (including developed software) 3,900 2,621 1,344
Motor vehicles 15 31 26
Leasehold improvements 215 150 85
Total net book value 4,530 3,849 3,166

9. Employee Future Benefits [Return to note 9.]

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.

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 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:

Employee Future Benefits for the year ending March 31 in thousands of dollars. Read down the first column for the accrued benefit obligation (beginning of year), expenses, benefits paid and accrued benefit obligation (end of year), then to the right for 2014 and for 2013.
(in thousands of dollars) 2014 2013
Accrued benefit obligation, beginning of year 3,037 6,361
Expense for the year 1,058 1,176
Benefits paid during the year (2,850) (4,500)
Accrued benefit obligation, end of year 1,245 3,037

10. Contractual Obligations

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

Contractual Obligations for the year ending March 31 in thousands of dollars. Read down the first column for the fiscal year then to the right for the figures for Operating Leases and Total.
(in thousands of dollars) Operating
leases
Total
2015 915 915
2016 243 243
Total contractual obligations 1,158 1,158

11. Related Party Transactions [Return to note 11.]

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 are obtained without charge from other government departments as disclosed below.

  1. Common services provided without charge by other government departments

    In 2014 and 2013, the School will receive 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 to be provided without charge have been recorded in the School's Future-Oriented Statement of Operations and Departmental Net Financial Position as follows:

    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 2014 and for 2013.
    (in thousands of dollars) 2014 2013
    Accommodation 10,000 10,000
    Employer's contribution to the health and dental insurance plans 4,806 4,895
    Total common services provided without charge from other government departments 14,806 14,895

    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 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.

  2. 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 2014 and for 2013.
    (in thousands of dollars) 2014 2013
    Expenses – Other government departments and agencies 21,331 21,457
    Revenues – Other government departments and agencies 50,000 50,000

    Expenses and revenues disclosed in (b) exclude common services provided without charge as disclosed in (a).

12. Segmented Information [Return to note 12.]

Presentation by segment is based on the School's programs. The presentation by segment is based on the same accounting policies as described in the Summary of Significant Accounting Policie. Endnotes4 The following table presents the expenses to be incurred and the forecasted revenues for the main programs, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

Segmented Information for the year ending March 31 in thousands of dollars. Read down the first column for Operating Expenses, Revenues and the Net Cost from continuing operations, then to the right for the figures for 2014 by program activity and the total for the year, and then figures for 2013.
(in thousands of dollars) 2014 2013
Foundational
learning
Organizational
leadership
development
Public
sector
management
innovation
Internal
services
Total
Operating expenses
Salaries and employee benefits 36,740 6,466 4,030 19,598 66,834 61,676
Professional and special services 18,309 2,566 1,808 1,691 24,374 28,602
Rental of accommodation and equipment 7,513 1,342 880 2,627 12,362 12,772
Transportation and telecommunications 1,987 535 282 77 2,881 3,381
Utilities, materials and supplies 734 112 63 217 1,126 1,322
Small equipment and parts 687 108 50 255 1,100 1,291
Printing and publishing 562 3 283 14 862 1,012
Amortization of tangible capital assets 1,193 213 124 264 1,794 1,776
Repair and maintenance 566 92 61 217 936 1,098
Total operating expenses 68,291 11,437 7,581 24,960 112,269 112,930
 
Revenues
Sales of goods and services 38,502 7,456 4,042 - 50,000 50,000
 
Net cost of continuing operations 29,789 3,981 3,539 24,960 62,269 62,930

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