Reports

2010-2011 Financial Statements (Unaudited)
For the year ended March 31, 2011

Table of Contents

• Statement of Management Responsibility
  
  
• Statement of Financial Position
  
  
• Statement of Operations
  
  
• Statement of Equity of Canada
  
  
• Statement of Cash Flow
  
  
• Notes to the Financial Statements
  
  
  1. Authorities and Objectives
  2. Summary of Significant Accounting Policies
  3. Parliamentary Authorities
  4. Accounts Receivable and Advances
  5. Tangible Capital Assets
  6. Accounts Payable and Accrued Liabilities
  7. Employee Future Benefits
  8. Contractual Obligations
  9. Related Party Transactions
  10. Segmented Information
  11. Adoption of New Accounting Policies
  12. Comparative Information

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 fulfill 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:

Original signed by:

Ottawa, Canada
June 17, 2011

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

(in thousands of dollars)

	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:

Original signed by:

Ottawa, Canada
June 17, 2011

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

(in thousands of dollars)

	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)

	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)

	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 fulfill 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:

   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)

   	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)

   	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):

	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)

	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)

	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)

	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)

	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)

   	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)

	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)

   	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)

   	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)

	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)

	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.