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Quarterly Financial Report: April 1 to June 30, 2012

For the period April 01, 2012 to June 30, 2012

Management Statement for the Quarter Ended June 30, 2012

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 2012-13 as well as Canada's Economic Action Plan 2012 (Budget 2012).

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 the Treasury Board Secretariat, and its 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 2012-13. 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 Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, 2012, following the tabling of the Main Estimates on February 28, 2012. As a result, the measures announced in Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012-2013, frozen allotments will be established by the Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.

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 June 30, 2012 and Fiscal Year 2012-2013 Results to Date


  1. Total Authorities for Fiscal Year 2012-13

    • 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 revenue and contributions to the employee benefit plans.
    • The School's appropriations were reduced to $44.7 million for fiscal year 2012-13 compared to $48.2 million for fiscal year 2011-12. This decrease is due to the transfer of $3 million to Shared Services Canada and the ending of the Official Language Pilot Project for Universities ($545,000).
    • The statutory funding authority of $84.2 million for 2012-13 consists of $50 million of forecasted revenue, $27.8 million of respendable revenue brought forward from the previous fiscal year under the provisions of s. 18(2) of the Canada School of Public Service Act and $6.4 million for employee benefit plans.
    • The total authorities available in fiscal year 2012-13 amount to $128.8 million. This is $6 million higher than the amount available in fiscal year 2011-12 due to an increase in respendable revenue brought forward from the previous fiscal year, partially offset by the reduction in appropriations.

  2. Planned Expenditures for Fiscal Year 2012-13

    • The School has planned expenditures of $128.8 million in 2012-13 consisting of $71.5 million for salaries and benefits and $57.3 million for operation and maintenance.

  3. Expenditures for the Quarter Ended June 30, 2012

    • Overall expenditures decreased by $1.2 million in the first quarter of fiscal year 2012-13 compared to the same quarter last year ($19.8 million versus $21 million) primarily due to decreases in personnel, transportation and communications costs. These reductions were partially offset by a small increase ($421,000) in expenditures for professional and special services.

Risks and Uncertainties

Respendable revenue represents more than 50% of the School's funding. Uncertainty remains concerning the level of departmental expenditures for training due to expenditure reduction initiatives. To mitigate this risk, the School has developed and documented, in its Corporate Risk Profile, mitigation plans which are monitored by management to ensure their effectiveness. The School also completed a detailed five-year forecast of expenditures and revenues which have been validated by a third-party accounting firm.

Significant Changes in Relation to Operations, Personnel and Programs

In January 2012, the School announced that it would cease direct delivery of languagetraining beginning March 31, 2012. A reduction in forecasted revenue of approximately $14 million and related expenditures is anticipated in the current fiscal year.

Budget 2012 Implementation

This section provides an overview of the savings measures announced in Budget 2012 that will be implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and, modernize and reduce the back office.

The School will achieve Budget 2012 savings of $6.6 million by fiscal year 2014-15 through efficiency measures and program reductions that align resources to its core mandate, scaling back where the need is reduced; by transforming how it works internally; and by consolidating and streamlining its operations.

In the first year of implementation of the Budget 2012 measures, the School will achieve savings of $2.8 million. Savings will increase to $3.5 million in 2013-14, reaching $6.6 million in ongoing savings by 2014-15.

As previously indicated, due to the timing of the tabling of Budget 2012 in Parliament, the 2012-13 Main Estimates do not reflect the Budget 2012 measures. Therefore any variances in authorities between 2012-13 and 2011-12 are not related to the Budget 2012 measures.

The measures announced in Budget 2012, impacting the School in 2012-13, have been implemented and the related savings will be reflected in subsequent Quarterly Financial Reports.

There are no financial risks or uncertainties related to the achievement of the School's savings. However, the Budget 2012 savings measures being implemented by other departments may impact their training budgets and therefore the School's revenue levels. The School has started to implement plans to mitigate this risk.

Original approved by:
Guy Mc Kenzie
Deputy Minister/President

Chantale Cousineau-Mahoney
Vice-President and Chief Financial Officer
Corporate Management and Registration Services Branch
Ottawa, Ontario
August 28, 2012

Statement of Authorities (unaudited)

Fiscal year 2012-2013 (in thousands of dollars)

Statement of authorities for fiscal year 2012-2013 in thousands of dollars. Read down the first column for the authorities and then to the right for the figures for the year ending March 31, 2013, the quarter ended June 30, 2012, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
  Total available for use for the year ending
March 31, 2013Footnotes 1
Used during the quarter ended
June 30, 2012
Year to date used at quarter-end
Vote 40 – Program expenditures 44,650 12,181 12,181
Budgetary statutory authorities
Contributions to employee benefit plans
6,446 1,612 1,612
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act
77,752 6,033 6,033
Total authorities 128,848 19,826 19,826

Statement of Authorities (unaudited) (continued)

Fiscal year 2011-2012 (in thousands of dollars)

Statement of authorities for fiscal year 2011-2012 in thousands of dollars. Read down the first column for the authorities and then to the right for the figures for the year ending March 31, 2012, the quarter ended June 30, 2011, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
  Total available
for use for the year ending
March 31, 2012
Used during
the quarter ended
June 30, 2011
Year to date used
at quarter-end
Vote 40 – Program expenditures 48,210 12,339 12,339
Budgetary statutory authorities
Contributions to employee benefit plans
6,740 1,123 1,123
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act
67,885 7,558 7,558
Total authorities 122,835 21,020 21,020

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal year 2012-2013 (in thousands of dollars)

Departmental budgetary expenditures by Standard Object for fiscal year 2012-2013 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, 2013, the quarter ended June 30, 2012, and the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
  Planned expenditures
for the year ending
March 31, 2013Footnotes 2
Expended during
the quarter ended
June 30, 2012
Year to date used
at quarter-end
Expenditures:
Personnel
71,456 16,051 16,051
Transportation and communications
5,171 350 350
Information
1,423 315 315
Professional and special services
41,171 2,474 2,474
Rentals
4,011 543 543
Repair and maintenance
1,517 4 4
Utilities, materials and supplies
1,900 68 68
Acquisition of machinery and equipment
1,924 13 13
Transfer payments
275 - -
Other subsidies and payments
- 8 8
Total budgetary expenditures 128,848 19,826 19,826

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

Fiscal year 2011-2012 (in thousands of dollars)

Departmental budgetary expenditures by Standard Object for 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 June 30, 2011, and the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
  Planned expenditures
for the year ending
March 31, 2012
Expended during
the quarter ended
June 30, 2011
Year to date used
at quarter-end
Expenditures:
Personnel
76,536 17,356 17,356
Transportation and communications
4,208 645 645
Information
1,054 121 121
Professional and special services
33,689 2,053 2,053
Rentals
4,445 654 654
Repair and maintenance
198 4 4
Utilities, materials and supplies
1,469 112 112
Acquisition of machinery and equipment
961 15 15
Transfer payments
275 - -
Other subsidies and payments
- 60 60
Total budgetary expenditures 122,835 21,020 21,020

Footnotes

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