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Financial Statements 2018–2019 (Unaudited)

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For the year ended March 31, 2019

Table of Contents


Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2019, and all information contained in these statements rests with the management of the Canada School of Public Service (the School). These financial statements have been prepared by management using the Government's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment 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 Results Report is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) 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 School; and, through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based, on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The School is subject to periodic Core Control Audits performed by the Office of the Comptroller General (OCG) and uses the results of such audits to comply with the Treasury Board Policy on Financial Management.

A Core Control Audit was performed in 2014–2015 by the OCG. The Audit Report and related Management Action Plan are posted on the School's Web site.

The financial statements of the School have not been audited.

Original signed by:
Taki Sarantakis
President

August 13, 2019
Ottawa, Canada


Tom Roberts
A/Vice-President, Corporate Services Branch

August 08, 2019
Ottawa, Canada

Statement of Financial Position (Unaudited)

As at March 31

Statement of Financial Position (Unaudited) as of March 31, 2019. Read down the first column for a list of liabilities, financial assets and non-financial assets. Read across to the right for the amounts in thousands of dollars for 2019 and 2018. The departmental net financial position is presented in the last row of the table.
(in thousands of dollars) 2019 2018
Liabilities
Accounts payable and accrued liabilities (note 4)
9,424 8,370
Vacation pay and compensatory leave
3,503 3,177
Employee future benefits (note 5)
2,599 2,972
Other liabilities
87 1
Total liabilities 15,613 14,520
Financial assets
Due from the Consolidated Revenue Fund
9,054 6,344
Accounts receivable and advances (note 6)
2,826 4,012
Total gross financial assets 11,880 10,356
Financial assets held on behalf of Government
Accounts receivable and advances (note 6)
(1,902) (1,288)
Total financial assets held on behalf of Government (1,902) (1,288)
Total net financial assets 9,978 9,068
Departmental net debt 5,635 5,452
Non-financial assets
Prepaid expenses
461 104
Tangible capital assets (note 7)
8,255 5,436
Total non-financial assets 8,716 5,540
Departmental net financial position 3,081 88

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

Original signed by:
Taki Sarantakis
President

August 13, 2019
Ottawa, Canada


Tom Roberts
A/Vice-President, Corporate Services Branch

August 08, 2019
Ottawa, Canada

Statement of Operations and Departmental Net Financial Position (Unaudited)

For the year ended March 31

Statement of Operations and Departmental Net Financial Position (Unaudited) for the year ended March 31, 2019. Read down the first column for the expenses, revenues, and government funding and transfers. Read across to the right for the amounts in thousands of dollars for planned results 2019 and actual results for 2019 and 2018. The departmental net financial position at the beginning of the year and end of the year are presented in the last rows of the table.
(in thousands of dollars) Planned
Results
2019
2019 2018
Expenses
Learning Services
69,217 72,080 64,633
Internal Services
23,187 23,069 24,013
Total expenses 92,404 95,149 88,646
Revenues
Sales of Goods and Services
9,045 6,424 9,740
Other Revenues
2 5
Total revenues 9,045 6,426 9,745
Net cost of operations before government funding and transfers 83,359 88,723 78,901
Government funding and transfers
Net cash provided by Government
75,398 67,459
Change in due from Consolidated Revenue Fund
2,710 (2,250)
Services provided without charge by other government departments (note 8)
13,624 14,161
Transfer of assets to other government departments
(16)
Net cost (revenue) of operations after government funding and transfers (2,993) (469)
Departmental net financial position – Beginning of year 88 (381)
Departmental net financial position – End of year 3,081 88

Segmented information (note 9)

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

Statement of Change in Departmental Net Debt (Unaudited)

For the year ended March 31

Statement of Change in Departmental Net Debt (Unaudited) for the year ended March 31, 2019. Read down the first column for a list of changes. Read across to the right for the amounts in thousands of dollars for 2019 and 2018. The departmental net debt at the beginning of the year and end of the year are presented in the last rows of the table.
(in thousands of dollars) 2019 2018
Net cost of operations after government funding and transfers (2,993) (469)
Change due to tangible capital assets
Acquisition of tangible capital assets (note 7)
4,344 1,807
Amortization of tangible capital assets (note 7)
(1,525) (1,227)
Total change due to tangible capital assets 2,819 580
Change due to prepaid expenses 357 32
Net increase in departmental net debt 183 143
Departmental net debt – Beginning of year 5,452 5,309
Departmental net debt – End of year 5,635 5,452

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

Statement of Cash Flows (Unaudited)

For the year ended March 31

Statement of Cash Flows (Unaudited) for the year ended March 31, 2019. Read down the first column for the operating activities and capital investing activities. Read across to the right for the amounts in thousands of dollars for 2019 and 2018. Net cash provided by the Government of Canada is presented in the last row of the table.
(in thousands of dollars) 2019 2018
Operating activities
Net cost of operations before government funding and transfers 88,723 78,901
Non-cash items:
Amortization of tangible capital assets (note 7)
(1,525) (1,227)
Services provided without charge by other government departments (note 8)
(13,624) (14,161)
Variations in Statement of Financial Position
Increase (decrease) in accounts receivable and accountable advances
(1,798) 1,138
Increase (decrease) in prepaid expenses
357 32
Decrease (increase) in accounts payable and accrued liabilities
(1,054) 1,442
Decrease (increase) in vacation pay and compensatory leave
(326) (258)
Decrease (increase) in employee future benefits
373 (215)
Decrease (increase) in other liabilities
(86) -
Transfer of assets to other government departments
16 -
Cash used in operating activities 71,056 65,652
Capital investing activities
Acquisitions of tangible capital assets (note 7)
4,344 1,807
Proceeds from disposal of assets
(2) -
Cash used in capital investing activities 4,342 1,807
Net cash provided by Government of Canada 75,398 67,459

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

Notes to the Financial Statements (Unaudited)

For the year ended March 31

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 and Minister of Digital Government.

The School has a single core responsibility: "Common Public Service Learning".

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, consistent curriculum that focuses on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.

2. Summary of significant accounting policies

These financial statements have been prepared using the School's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

  1. Parliamentary authorities

    The School is financed primarily 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 Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the basis of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Positions are the amounts reported in the Future-oriented Statement of Operations included in the 2018–19 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2018–19 Departmental Plan.

  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 or to the CRF

    Amounts due from or to 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 authorities 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 and employer contributions 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 multiemployer 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 total departmental obligation to the Plan. 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.
    • Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employees groups. The remaining obligation for employees who did not withdraw benefits 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 School does not capitalize intangible assets.

    Amortization of tangible capital assets is calculated on a straight-line basis over the estimated useful life of the assets as follows:

    Summary of significant accounting policies. (h) Tangible capital assets. Amortization periods for tangible capital assets based on a straight-line basis over the estimated useful life of the assets. Read down the first column for the asset class and down the second 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
    Leasehold Improvements Over the useful life of the improvement or the lease term, whichever is shorter

    Assets under construction are recorded in the applicable capital asset class and amortized when 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 and accompanying notes at March 31. 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 future 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 Departmental Net Financial Position 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

    Parliamentary authorities. (a) Reconciliation of net cost of operations to current year authorities used. Read down the first column for the net cost of operations before government funding, transfers and adjustments, adjustments for items affecting the net cost of operations but not affecting authorities, and adjustments for items not affecting the net cost of operations but affecting authorities. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018 Current year authorities used is presented in the last row of the table.
    (in thousands of dollars) 2019 2018
    Net cost of operations before government funding and transfers 88,723 78,901
    Adjustments for items affecting net cost of operations but not affecting authorities:
    Revenues
    6,426 9,745
    Services provided without charge by other government departments
    (13,624) (14,161)
    Amortization of tangible capital assets
    (1,525) (1,227)
    Decrease (increase) employee future benefits
    373 (215)
    Decrease (increase) provisions for vacation pay and compensatory leave
    (326) (258)
    Prior year adjustments
    80 225
    Other
    (63) 53
    Total adjustments for items affecting net cost of operations but not affecting authorities (8,659) (5,838)
    Adjustments for items not affecting net cost of operations but affecting authorities:
    Acquisition of tangible capital assets (note 7)
    4,344 1,807
    Increase (decrease) in prepaid expenses
    357 32
    Salary overpayments to recover
    470 1,388
    Total adjustments for items not affecting net cost of operations but affecting authorities 5,171 3,227
    Current year authorities used 85,235 76,290
  2. Authorities provided and used

    Parliamentary authorities. (b) Authorities provided and used. Read down the first column for the authorities provided and lapsed and statutory authorities. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018. Current year authorities used is presented in the last row of the table.
    (in thousands of dollars) 2019 2018
    Authorities provided:
    Vote 1 – Program expenditures
    68,286 68,248
    Less:
    Lapsed authorities
    (828) (1,058)
    Total authorities used 67,458 67,190
    Statutory authorities:
    Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act
    9,740 2,646
    Contributions to employee benefits plan
    8,031 6,454
    Spending of proceeds from the disposal of surplus Crown assets
    6 -
    Total statutory authorities used 17,777 9,100
    Current year authorities used 85,235 76,290

4. Accounts payable and accrued liabilities

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

Accounts payable and accrued liabilities. Read down the first column for the accounts payable and liabilities, ordered by category. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018. Total accounts payable and accrued liabilities is presented in the last row of the table.
(in thousands of dollars) 2019 2018
Accounts payable – Other government departments and agencies 1,377 2,722
Accounts payable – External parties 2,295 1,102
Total accounts payable 3,672 3,824
Accrued liabilities 5,752 4,546
Total accounts payable and accrued liabilities 9,424 8,370

5. Employee future benefits

  1. Pension benefits

    The School's employees participate in 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 the Canada/Quebec Pension Plan benefits, and they are indexed to inflation.

    Both the employees and the School contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into two groups – Group 1 consists of existing plan members as of December 31, 2012 and Group 2 consists of members joining the Plan as of January 1, 2013. Each group has a distinct contribution rate.

    The 2018–19 expense amounts to $5.6 million ($4.4 million in 2017–18). For Group 1 members, the expense represents approximately 1.01 times (1.01 times in 2017–18) the employee contributions and, for Group 2 members, approximately 1.00 times (1.00 times in 2017–18) the employee contributions.

    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

    Severance benefits provided to the School's employees were previously based on an employee's eligibility, years of service and salary at termination of employment. However, since 2011 the accumulation of severance benefits for voluntary departures progressively ceased for substantially all employees. Employees subject to these changes were given the option to be paid the full or partial value of benefits earned to date or collect the full or remaining value of benefits upon departure from the public service. By March 31, 2018, substantially all settlements for immediate cash out were completed. Severance benefits are unfunded and, consequently, the outstanding obligation will be paid from future authorities.

    The changes in the obligations during the year were as follows:

    Employee future benefits. (b) Severance benefits. Read down the first column for the benefits owing at the beginning of the year, expense for the year, benefits paid during the year and the balance owing at the end of the year. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018
    (in thousands of dollars) 2019 2018
    Accrued benefit obligation, beginning of year 2,972 2,757
    Expense for the year 208 1,253
    Benefits paid during the year (581) (1,038)
    Accrued benefit obligation – end of year 2,599 2,972

6. Accounts receivable and advances

The following table presents details of the School's accounts receivable and advances balances:

Accounts receivable and advances. Read down the first column for the receivables and advances, ordered by category. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018 Total accounts receivable and advances is presented in the last row of the table.
(in thousands of dollars) 2019

2018

Receivables – Other government departments and agencies 916 2,718
Receivables – External parties 1,912 1,300
Advances 5 2
Subtotal 2,833 4,020
Allowance for doubtful accounts on receivables from external parties (7) (8)
Gross accounts receivable and advances 2,826 4,012
Accounts receivable held on behalf of Government (1,902) (1,288)
Net accounts receivable and advances 924 2,724

7. Tangible capital assets

Tangible capital assets. Cost. Read down the first column for the capital asset class. Read across to the right for the cost, in thousands of dollars, for the opening balance; acquisitions; adjustments; disposals and write-offs; and closing balance. The totals are presented in the last row of the table.
Cost (in thousands of dollars)
Capital asset class Opening
balance
Acquisitions Adjustments Disposals
and write-offs
Closing
balance
Machinery and equipment 3,257 357 - - 3,614
Other equipment (including furniture) 661 456 - - 1,117
Informatics hardware 499 2,522 - - 3,021
Software (including developed software) 10,543 474 - - 11,017
Leasehold improvements 3,181 757 - - 3,938
Assets under construction 222 (222) - - -
Total 18,363 4,344 - - 22,707
Tangible capital assets. Accumulated amortization. Read down the first column for the capital asset class. Read across to the right for the accumulated amortization, in thousands of dollars, for the opening balance; amortization; adjustments; disposals and write-offs; and closing balance. The totals are presented in the last row of the table.
Accumulated amortization (in thousands of dollars)
Capital asset class Opening
Balance
Amortization Adjustments Disposals and
write-offs
Closing
balance
Machinery and equipment 1,515 573 - - 2,088
Other equipment (including furniture)
121 64 - - 185
Informatics hardware
401 184 - - 585
Software (including developed software)
9,698 408 - - 10,106
Leasehold improvements
1,192 296 - - 1,488
Assets under construction
- - - - -
Total 12,927 1,525 - - 14,452
Tangible capital assets. Net book value. Read down the first column for the capital asset class. Read across to the right for the net book value, in thousands of dollars, for 2019 and 2018. The totals are presented in the last row of the table.
Net book value (in thousands of dollars)
Capital asset class 2019 2018
Machinery and equipment 1,526 1,742
Other equipment (including furniture) 932 540
Informatics hardware 2,436 98
Software (including developed software) 911 845
Leasehold improvements 2,450 1,989
Assets under construction - 222
Total 8,255 5,436

8. 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.

  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 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 and Departmental Net Financial Position as follows:

    Related party transactions. (a) Common services provided without charge by other government departments. Read down the first column for the services listed by category. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018. Total common services provided without charge from other government departments is presented at the bottom in the last row of the table.
    (in thousands of dollars) 2019 2018
    Accommodation 8,733 9,593
    Employer's contribution to the health and dental insurance plans 4,891 4,568
    Total common services provided without charge from other government departments 13,624 14,161

    The Government has centralized some of its administrative activities for efficiency, cost-effectiveness 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 Services and Procurement Canada, information technology services provided by Shared Services Canada are not included in the School's Statement of Operations and Departmental Net Financial Position.

  2. Other transactions with related parties

    Related party transactions. (b) Other transactions with related parties. Read down the first column for the expenses and revenues. Read across to the right for the amounts, in thousands of dollars, for 2019 and 2018.
    (in thousands of dollars) 2019 2018
    Expenses – Other Government departments and agencies 21,885 19,919
    Revenues – Other Government departments and agencies 6,333 9,595

    Expenses and revenues disclosed in (b) exclude common services provided without charge, which are already disclosed in (a).

9. Segmented information

Presentation by segment is based on the School's Program Alignment Architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant policies in note 2. The following table presents the expenses incurred and revenues generated for the main core responsibilities, by major object of expense and by major type of revenue. The segment results for the period are as follows:

Segmented information. This table presents expenses incurred and revenues generated by program based on the Program Alignment Architecture. Read down the first column for the operating expenses and revenues. Read across to the right for the amounts (in thousands of dollars) for learning services, internal services and the totals for 2019 and 2018. The net cost of operations before government funding and transfers is presented in the last row of the table.
(in thousands of dollars) Learning
Services
Internal
Services
2019 2018
Operating expenses
Salaries and employee benefits
54,460 15,639 70,099 60,895
Professional and special services
9,413 3,658 13,071 12,183
Rental of accommodation and equipment
7,066 2,372 9,438 10,290
Transportation and telecommunications
2,054 312 2,366 2,346
Amortization of tangible capital assets
1,331 194 1,525 1,227
Printing and publishing
898 303 1,201 514
Small equipment and parts
424 237 661 537
Utilities, materials and supplies
225 112 337 372
Repair and maintenance
20 252 272 347
Other operating expenses
(3,811) (10) (3,821) (65)
Total expenses 72,080 23,069 95,149 88,646
Revenues
Sales of Goods and Service
6,424 - 6,424 9,740
Other Revenues
2 - 2 5
Total revenues 6,426 - 6,426 9,745
Net cost from continuing operations before government funding and transfers 65,654 23,069 88,723 78,901

10. Comparative information

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

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