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Future-Oriented Statement of Operations 2015–2016 (Unaudited)

The Canada School of Public Service's Future-Oriented Statement of Operations for the fiscal years ending March 31, 2015 and March 31, 2016 is presented in the two tables below. The first table presents the expenses to be incurred for the School's programs by major object of expenses and the forecasted revenues, segmented by program. The second table presents results by program.

Future-Oriented Statement of Operations by Program, Major Object of Expenses and Revenues

Future-Oriented Statement of Operations by Program, Major Object of Expenses and Revenues Future-Oriented Statement of Operations by Program, Major Object of Expenses and Revenues, in thousands of dollars. Read down the first column for operating expenses, revenues and the net cost of continuing operations, then to the right for the estimated results for 2014–-2015 followed by figures for 2015-2016 by program and the total for the year.
(in thousands of dollars) Estimated Results
2014–2015		 Planned Results – 2015–2016
Learning
Services		 Internal
Services		 Total
Operating expenses
Salaries and employee benefits
 71,929 45,395 17,555 62,950
Professional and special services
 13,662 14,341 5,545 19,886
Rental of accommodation and equipment
 8,801 5,356 2,071 7,427
Transportation and telecommunications
 1,760 1,298 502 1,800
Utilities, materials and supplies
 410 332 128 460
Small equipment and parts
 1,110 1,144 442 1,586
Printing and publishing
 680 447 173 620
Amortization of tangible capital assets
 2,366 2,256 873 3,129
Repair and maintenance
 1,319 764 296 1,060
Total operating expenses
 102,037 71,333 27,585 98,918
 
Revenues
Sales of goods and services
 33,000 11,283 - 11,283
 
Net cost of continuing operations 69,037 60,050 27,585 87,635

Future-Oriented Statement of Operations by Program

Future-Oriented Statement of Operations by Program, in thousands of dollars. Read down the first column for expenses, revenues and the net cost of operations, then to the right for the estimated results for 2014-2015 and the planned results for 2015-2016.
(in thousands of dollars) Estimated
Results
2014–2015		 Planned
Results
2015–2016Note*
Expenses
Foundational Learning
 48,602  
Organizational Leadership Development
 9,799  
Public Service Management Innovation
 12,151  
Sub-total (Learning Services)
 70,552 71,333
Internal Services
 31,485 27,585
Total Expenses
 102,037 98,918
 
Revenues
Sales of goods and services
 33,000 11,283
Total revenues 33,000 11,283
 
Net cost of operations 69,037 87,635

Notes to the Future-Oriented Statement of Operations

1. Authority and Objectives

The Canada School of Public Service 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 service 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 one new strategic outcome: Federal public service employees have the common knowledge, skills and competencies to fulfil their responsibilities in serving Canadians.

To achieve this goal, the School will continue to offer a strong and 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. Methodology and Significant Assumptions

The preparation of the Future-Oriented Statement of Operations requires making estimates and assumptions that affect the reported amounts. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, assume a continuation of current governmental priorities and remain consistent with the departmental mandate and strategic objectives. At the time of the preparation of this Future-Oriented Statement of Operations, 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.

The Future-Oriented Statement of Operations 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 revenue forecast of $11.2 million in 2015–2016, 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 generally accepted accounting principles for the Canadian public sector; and
  • in consideration of historical costs, trends and latest available forecast for 2014–2015 and 2015–2016.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results for 2014–2015 and 2015–2016, actual results achieved are likely to vary from the forecast information presented, and these differences could be material.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical financial statements include the impact of economic conditions on 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 School will not be updating the forecasts for any changes to appropriations. Variances will be explained in the Departmental Performance Report.

4. Summary of Significant Accounting Policies

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies, which are consistent with generally accepted accounting principles for the Canadian public sector.

Significant accounting policies are as follows:

  1. Revenues

    Revenues are recorded on an accrual basis. Revenues are recognized and recorded as such in the period in which the services have been rendered or the products delivered.

  2. Expenses

    Expenses are recorded on an accrual basis. Expenses for the School's operations are recorded when goods are received or services are rendered, including services provided without charge for accommodation, employer contributions to health and dental insurance plans, legal services and worker's compensation, which are recorded as expenses at their estimated cost. Vacation pay, compensatory leave and severance benefits are accrued and expenses are recorded as the benefits are earned by employees under their respective terms of employment. Expenses also include amortization of those tangible capital assets that are capitalized at their acquisition cost.

  3. Severance Benefits

    Certain employees are eligible to receive 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.

    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:

    Severance Benefits, in thousands of dollars. The table presents, from left to right, the expenses for 2015 and 2016.
    (in thousands of dollars) 2015 2016
    Expenses for the year 1,301 1,200
  4. 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:

    Severance Benefits, in thousands of dollars. The table presents, from left to right, the expenses for 2015 and 2016.
    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.

5. 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 Statement of Operations is based on accrual accounting. Consequently, items recognized in the Future-Oriented Statement of Operations 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 authorities requested
    Reconciliation of net cost of operation to authorities requested 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 2015 and for 2016.
    (in thousands of dollars) 2015 2016
    Net cost of operations before government funding and transfers 69,03787,635
     
    Adjustments for items affecting net cost of operations but not affecting authorities
    Revenues
    		 33,000 11,283
    Services provided without charge by other government departments
    		 -12,188 -10,288
    Severance benefits
    		 -1,301 -1,200
    Amortization of tangible capital assets
    		 -2,366 -3,129
    Total adjustments for items affecting net cost of operations but not affecting authorities 17,145 -3,334
     
    Adjustments for items not affecting net cost of operations but affecting authorities
    Acquisition of tangible capital assets
    		 3,322 5,548
    Total adjustments for items not affecting net cost of operations but affecting authorities 3,322 5,548
    Current year authorities to be used 89,504 89,849
  2. Authorities requested
    Authorities requested in thousands of dollars. Read down the first column for authorities requested, statutory authorities and current year authorities, then to the right for the figures for 2015 and for 2016.
    (in thousands of dollars)20152016
    Authorities requested
    Vote 1 – Program expenditures
    		 41,33339,657
    Reallocation through estimates
    		 1,45513,170
    Total authorities requested 42,78852,827
     
    Statutory authorities
    Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service ActNote**
    		 39,967 30,312
    Contributions to employee benefits plan
    		 6,749 6,710
    Total statutory authorities to be used 46,716 37,022
     
    Current year authorities to be used 89,504 89,849

6. 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 without charge from other government departments as disclosed below.

  1. Common services provided without charge by other government departments

    The government has centralized some of its administrative activities for efficiency, cost-effectiveness and economic delivery of programs to the public. As a result, certain services are provided to 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.

    Common services provided without charge for other government departments in thousands of dollars. Read down the first column for the common services, then to the right for the figures for 2015 and for 2016.
    (in thousands of dollars) 2015 2016
    Accommodation7,2356,107
    Employer's contribution to the health and dental insurance plans4,9534,181
    Total common services provided without charge from other government departments12,18810,288
  2. Other transactions with related parties
    Other transactions with related parties in thousands of dollars. Read down the first column for the transactions, then to the right for the figures for 2015 and for 2016.
    (in thousands of dollars)20152016
    Revenues – Other government departments and agencies33,00011,283
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