Quarterly Financial Report: October 1 to December 31, 2015
Management Statement for the Quarter Ended December 31, 2015
Introduction
This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in accordance with Treasury Board Accounting Standard 1.3. It should be read in conjunction with the Main Estimates and Supplementary Estimates for Fiscal Year 2015–2016.
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 reporting to the President of the Treasury Board, and its mission is set out in the Canada School of Public Service Act.
The School was created to ensure that all employees of the Public Service of Canada have the competencies and common knowledge required to serve Canadians in the most efficient and effective way possible. To achieve this goal, the School continues to offer a common curriculum and a range of learning products and tools focused on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.
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 regularly reviews its suite of learning products to ensure alignment with government priorities and the learning needs of the public service. For instance, the School will integrate learning opportunities to support evidence-based decision making, delivery of results, open and transparent government, engagement and collaboration and Indigenous awareness, amongst other priorities.
The School has a single strategic outcome: “Federal public service employees have the common knowledge, skills and competencies to fulfil their responsibilities in serving Canadians.” One program, Learning Services, supports this strategic outcome.
Basis of Presentation
This quarterly report has been prepared using expenditure-based 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 2015–2016. This report has also been guided by 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 monies can be spent by the government. Approvals are given through appropriation acts in the form of annually approved limits 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 generally accepted accounting principles for the Canadian 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, 2015, and Fiscal Year 2015–2016 Results to Date
1. Total Authorities for Fiscal Year 2015–2016
- 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 increased to $55.3 million for fiscal year 2015–2016 compared to $42.3 million reported at the end of the third quarter for fiscal year 2014–2015. The increase in appropriated funding is primarily the result of the transition to a new funding model to be completed in 2016–2017, whereby expenditures will be funded primarily from voted appropriation, in terms of the provision of common learning products to partner departments in the core public administration.
- The statutory funding authority of $46.3 million for 2015–2016 consists of $12.3 million of forecasted respendable revenue, $28.2 million of respendable revenue brought forward from the previous fiscal year (under the provision of section 18(2) of the Canada School of Public Service Act) and $5.8 million for employee benefit plans.
- The total authorities available in fiscal year 2015–2016 amount to $101.6 million. This is $25 million lower than the amount available in fiscal year 2014–2015 due to a decrease in respendable revenue. This decrease is also the result of the transition to the new funding model, shifting over time to reduce fee-based learning to a primarily appropriated core funding model that offers common learning at no cost to individual learners from partner departments.
2. Planned Expenditures for Fiscal Year 2015–2016
- The School has planned expenditures of $101.6 million in 2015–2016, consisting of $65.5 million for salaries and benefits and $36.1 million for operating and maintenance.
3. Expenditures for the Quarter Ended December 31, 2015
- Overall expenditures remained at approximately the same level ($20.8 million) in the third quarter of the current fiscal year compared to the same quarter last year. Increases in salary ($0.8 million), rentals ($0.3 million) and other subsidies and payments ($0.4 million) were offset by decreases in professional and special services ($0.9 million), repair and maintenance ($0.3 million) and acquisition of machinery and equipment ($0.2 million).
4. Year-to-Date Expenditures as at December 31, 2015
- Compared to the same period last year, overall expenditures increased by approximately $1.9 million through December 31, 2015 ($55.8 million versus $53.9 million) to support the transformation of the School's learning platform and the shift to a new business model. The difference is mainly due to an increase of $3.2 million in salaries, partially offset by a decrease of $1.2 million in other subsidies and payments.
Risks and Uncertainties
2015–2016 is the second year of the School’s three-year transformation to its new business model to support relevant, responsive and accessible government-wide learning. The transition to this new enterprise approach to learning was announced by the Clerk of the Privy Council in May 2014 and launched in late 2014–2015.
The management of risk pertaining to the School’s transformation to its new business model is closely aligned with the School’s risk management policy. The School has identified key risks that need to be managed during its transformation initiative, related to updating the School’s curriculum, managing clients’ expectations and effectively transitioning to its revitalized learning model, which requires effective partnership with key departments such as the Treasury Board of Canada Secretariat, Shared Services Canada, and Public Services and Procurement Canada.
Given the complexity of and the phased approach to the implementation of the new business model, any delay could affect achievement of time-dependent objectives.
The ongoing management of risks that could potentially affect the implementation of the new business model is monitored by the School’s senior management. This is supported by the School’s governance structure, including the senior-level Executive Committee. This oversight will ensure effective and timely project management and achievement of results.
Significant Changes in Relation to Operations, Personnel and Programs
There have been two changes in senior level personnel: the appointments of Elizabeth Tromp as Vice-President of the Corporate Services branch and Chief Financial Officer (effective December 7, 2015) and Amanda Jane Preece as Vice-President of the Strategic Directions and Service Excellence branch (effective January 11, 2016).
Original version signed by:
Wilma Vreeswijk
Deputy Minister/President
Elizabeth Tromp
Chief Financial Officer
Ottawa, Canada
February 29, 2016
STATEMENT OF AUTHORITIES (unaudited)
Statement of authorities for fiscal years 2015-2016 and 2014-2015 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, 2016, the quarter ended December 31, 2015 for fiscal year 2014-2015, the year-to-date used at quarter-end, for the year ending March 31, 2015, the quarter ended December 30, 2014 for fiscal year 2014-2015, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
| (In thousands of dollars) |
Fiscal year 2015–2016 |
Fiscal year 2014–2015 |
Total available for use for the year ending
March 31, 2016 |
Used during the quarter ended
December 31, 2015 |
Year to date used at quarter-end |
Total available for use for the year ending
March 31, 2015 |
Used during the quarter ended
December 31, 2014 |
Year to date used at quarter-end |
|
| Vote 1 – Program expenditures |
55,351 |
16,409 |
45,636 |
42,303 |
15,109 |
39,167 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
5,802 |
1,450 |
4,351 |
5,568 |
1,391 |
4,176 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
40,476 |
2,938 |
5,849 |
78,740 |
4,276 |
10,587 |
|
| Total authorities |
101,629 |
20,797 |
55,836 |
126,611 |
20,776 |
53,930 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2015-2016 and 2014-2015 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, 2016, the quarter ended September 30, 2015, the year-to-date used at quarter-end, the year ending March 31, 2015, the quarter ended December 30, 2014, the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
| (In thousands of dollars) |
Fiscal year 2015–2016 |
Fiscal year 2014–2015 |
Planned expenditures for the year ending
March 31, 2016Note* |
Expended during the quarter ended
December 31, 2015 |
Year to date used at quarter-end |
Planned expenditures for the year ending
March 31, 2015Note* |
Expended during the quarter ended
December 31, 2014 |
Year to date used at quarter-end |
|
| Expenditures |
|---|
Personnel |
65,526 |
16,683 |
44,078 |
70,059 |
15,872 |
40,891 |
Transportation and communications |
2,623 |
532 |
1,196 |
2,405 |
497 |
970 |
Information |
920 |
107 |
386 |
1,055 |
164 |
375 |
Professional and special services |
21,668 |
2,205 |
7,743 |
45,559 |
3,132 |
7,531 |
Rentals |
1,307 |
544 |
1,377 |
2,766 |
257 |
863 |
Repair and maintenance |
3,399 |
82 |
114 |
635 |
422 |
727 |
Utilities, materials and supplies |
742 |
111 |
246 |
1,112 |
100 |
226 |
Acquisition of machinery and equipment |
4,844 |
84 |
193 |
1,328 |
319 |
612 |
Other subsidies and paymentsNote** |
600 |
449 |
503 |
1,692 |
13 |
1,735 |
|
| Total budgetary expenditures |
101,629 |
20,797 |
55,836 |
126,611 |
20,776 |
53,930 |
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