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Quarterly Financial Report: October 1 to December 31, 2011

Management Statement for the Quarter Ended December 31, 2011

Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in accordance with Treasury Board Accounting Standard 1.3. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates for Fiscal Year 2011-12.

The Canada School of Public Service (the School) was created on April 1, 2004, when the legislative provisions of Part IV of the Public Service Modernization Act came into force. The School is a departmental corporation under Treasury Board Secretariat whose mission is set out in the Canada School of Public Service Act.

The School is the common learning service provider for the Public Service of Canada. It has a legislative mandate to provide a range of learning activities to build individual and organizational capacity and management excellence within the public service. The School is in a unique position to offer relevant, affordable and quality learning services in both official languages to all public service employees at all levels and across the country, as well as to functional communities and public organizations.

The School's program priorities are geared to delivering results in accordance with the Treasury Board's Policy on Learning, Training and Development which came into effect on January 1, 2006. The Policy highlights the value of learning and the importance of creating a learning culture within the public service.

The School has a single strategic outcome: "Public servants have the common knowledge and the leadership and management competencies they require to fulfil their responsibilities in serving Canadians." Four 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.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the School's spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for Fiscal Year 2011-12. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

As part of the departmental performance reporting process, the School prepares its annual financial statements on a full accrual basis in accordance with Treasury Board accounting standards, which are based on Canadian generally accepted accounting principles for the public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.

This quarterly report has not been subject to an external audit or review.

Highlights of the Quarter Ended December 31, 2011 and Fiscal Year 2011-2012 Results to Date

  1. Total Authorities for Fiscal Year 2011-12
    • The School has two sources of funding:
      • Appropriated funding as voted by Parliament for those activities to be paid from the Consolidated Revenue Fund; and
      • Statutory funding authority for the respending of revenues and contributions to the employee benefit plans.
    • The School's appropriations were reduced to $48.7 million for fiscal year 2011-12 from $56.7 million for fiscal year 2010-11. This decrease is due to the reductions of $6.7 million for Strategic Review, $720,000 for Compensation Adjustments, and $600,000 for the sunsetting of funding for the Integrated Learning Management System and the Official Language Pilot Project for Universities.
    • The statutory funding authority of $74.6 million for 2011-12 consists of $50 million from respendable revenues, $17.9 million for the carry forward of respendable revenues from the previous fiscal year under the provisions of s. 18(2) of the Canada School of Public Service Act and $6.7 million for employee benefit plans.
    • The total authorities available in fiscal year 2011-12 amount to $123.3 million. This is $1.3 million lower than the amount available in fiscal year 2010-11 due to the reduction of $8 million in appropriations, which is partially offset by an increase from $11.5 million to $17.9 million in respendable revenues brought forward from the previous year.
  2. Planned Expenditures for Fiscal Year 2011-12
    • The School has planned expenditures of $123.3 million in 2011-12 consisting of $76.6 million for salaries and $46.7 million for operations and maintenance.
    • Planned spending is anticipated to decrease by $1.3 million in fiscal year 2011-12 compared to last fiscal year, as a result of reduced salary costs and operating expenditures for professional and special services.
  3. Expenditures for the Quarter Ended December 31, 2011
    • Overall expenditures decreased by $154,000 in the third quarter of fiscal year 2011-12 compared to the same quarter last year ($29.3 million versus $29.4 million) primarily due to decreases in professional and special services, transportation and communications and rentals. These reductions were partially offset by the increase of expenditures for salaries and repair and maintenance.
    • The expenditures reported for the third quarter are $1.4 million lower than the second quarter, mainly as a result of the decrease in the value of severance payments.
    • The salary costs represent approximately 62 percent of total planned operating expenditures. These costs are currently tracking as planned once the impact of fully reimbursable severance payments are taken into consideration.
  4. Year-to-date Expenditures as at December 31, 2011
    • At the end of the third quarter, the School has spent $80.9 million of total planned expenditures of $123.3 million. A greater proportion of total expenditures will be incurred in the final quarter when the demand on the School's courses is greater and approximately 50 percent of the total revenues for the fiscal year will be earned.
    • Year-to-date expenditures reported at the end of the third quarter were $2.9 million less than the same period in 2010-11. About $4.7 million of this decrease is due to the reduction of professional and special services ($3.8 million) and rentals ($0.9 million), which is offset by an increase of $1.7 million for salary expenditures, attributable to the cash-out of severance payments. The severance payouts are eligible for reimbursement by Treasury Board this fiscal year.

Risks and Uncertainties

Respendable revenues represent more than 50 percent of the School's funding. Uncertainty remains concerning the level of departmental expenditures for training due to the freeze in departmental operating budgets as announced in Budget 2010 for fiscal years 2011-12 and 2012-13. The School continues to closely monitor registrations and revenue trends to assess the impact.

Significant Changes in Relation to Operations, Personnel and Programs

In January 2012, the School announced that it will cease direct delivery of languagetraining beginning March 31, 2012. No significant impact is foreseen for the balance of the current fiscal year; however, a reduction in revenues of approximately $14 million and related expenditures is anticipated next fiscal year.

Original signed by:

Guy Mc Kenzie
Deputy Minister/President



Original signed by:

Chantale Cousineau-Mahoney
Vice-President and Chief Financial Officer
Corporate Management and Registration Services Branch


Ottawa, Ontario
February 21, 2012

Statement of Authorities (unaudited)

Fiscal year 2011-2012 (in thousands of dollars)

Statement of authorities for the fiscal year 2011-2012 in thousands of dollars. Read down the first column and then to the right for the figures for the year ending March 31, 2012, the quarter ended December 31, 2011, and the year-to-date used at quarter-end.
  Total available for use for the year ending March 31, 2012 Used during the quarter ended December 31, 2011 Year to date used at quarter-end
Vote 40 – Program expenditures 48,689 13,449 43,471
[note 1]
Budgetary statutory authorities
Contributions to employee benefit plans
6,740 1,684 5,054
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act
67,885 14,130 32,452
[note 2]
Total authorities 123,314 29,263 80,977

[1] Year-to-date expenditures in 2011-2012 under "Vote 40 - Program expenditures" and "spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act" are to be compared to the amount disclosed under "Vote 40 - Program expenditures" in 2010-11. The School's expenditures are initially recorded against the appropriated funds with the portion required to earn revenues subsequently reallocated to the statutory authority. In previous fiscal years, this transfer was performed once at year-end. In 2011-2012, the reallocation of expenditures incurred to earn revenues is being processed on a quarterly basis. (return to source paragrap))

[2] Year-to-date expenditures in 2011-2012 under "Vote 40 - Program expenditures" and "spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act" are to be compared to the amount disclosed under "Vote 40 - Program expenditures" in 2010-11. The School's expenditures are initially recorded against the appropriated funds with the portion required to earn revenues subsequently reallocated to the statutory authority. In previous fiscal years, this transfer was performed once at year-end. In 2011-2012, the reallocation of expenditures incurred to earn revenues is being processed on a quarterly basis. (return to source paragraph)

Statement of Authorities (unaudited) (continued)

Fiscal year 2010-2011 (in thousands of dollars)

tatement of authorities for the fiscal year 2010-2011 in thousands of dollars. Read down the first column and then to the right for the figures for the year ending March 31, 2011, the quarter ended December 31, 2010, and the year-to-date used at quarter-end.
  Total available for use for the year ending March 31, 2011 Used during the quarter ended December 31, 2010 Year to date used at quarter-end
Vote 40 – Program expenditures 56,675 27,257 78,986
[note 3]
Budgetary statutory authorities
Contributions to employee benefit plans
6,477 2,160 4,859
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act
61,467 - -
Total authorities 124,619 29,417 83,845

[3] Year-to-date expenditures in 2011-2012 under "Vote 40 - Program expenditures" and "spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act" are to be compared to the amount disclosed under "Vote 40 - Program expenditures" in 2010-11. The School's expenditures are initially recorded against the appropriated funds with the portion required to earn revenues subsequently reallocated to the statutory authority. In previous fiscal years, this transfer was performed once at year-end. In 2011-2012, the reallocation of expenditures incurred to earn revenues is being processed on a quarterly basis. (return to source paragraph)

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2011-2012 (in thousands of dollars)

Departmental budgetary expenditures by Standard Object for the fiscal year 2011-2012 in thousands of dollars. Read down the first column for the list of expenditures and then read to the right for the figures for the year ending March 31, 2012, the quarter ended December 31, 2011, and the year-to-date used at quarter-end.
  Planned expenditures for the year ending March 31, 2012 Expended during the quarter ended December 31, 2011 Year to date used at quarter-end
Expenditures:
Personnel
76,558 19,204 58,129
Transportation and communications
4,288 865 2,124
Information
1,077 255 500
Professional and special services
33,719 7,089 16,232
Rentals
4,145 632 2,026
Repair and maintenance
789 465 517
Utilities, materials and supplies
1,487 538 821
Acquisition of machinery and equipment
976 133 441
Transfer payments
275 - 33
Other subsidies and payments
- 82 154
Total budgetary expenditures 123,314 29,263 80,977

Departmental Budgetary Expenditures by Standard Object (unaudited) (continued)

Fiscal year 2010-2011 (in thousands of dollars)

Departmental budgetary expenditures by Standard Object for the fiscal year 2010-2011 in thousands of dollars. Read down the first column for the list of expenditures and then read to the right for the figures for the year ending March 31, 2011, the quarter ended December 31, 2010, and the year-to-date used at quarter-end.
  Planned expenditures for the year ending March 31, 2011 Expended during the quarter ended December 31, 2010 Year to date used at quarter-end
Expenditures:
Personnel
77,375 18,448 56,471
Transportation and communications
4,297 1,078 2,750
Information
1,078 246 561
Professional and special services
34,355 8,244 19,997
Rentals
4,527 1,077 2,967
Repair and maintenance
225 16 46
Utilities, materials and supplies
1,499 299 824
Acquisition of machinery and equipment
988 37 121
Transfer payments
275 20 20
Other subsidies and payments
- (48) 88
Total budgetary expenditures 124,619 29,417 83,845

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