Archived - Departmental Performance Report 2012–13 - Supplementary Tables

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Details on Transfer Payment Programs[1]

Name of transfer payment program: Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 1957

End date: Ongoing

Description: Formula-based Equalization payments are made to eligible provincial governments to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11
Actual
Spending
2011–12
Actual
Spending
2012–13
Planned
Spending
2012–13
Total
Authorities
2012–13
Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 14,372.0 14,658.6 15,422.5 15,422.5 15,422.5
Total program 14,372.0 14,658.6 15,422.5 15,422.5 15,422.5

Comments on variances: The increase in actual spending from 2011–12 to 2012–13 represents the legislated annual growth in program spending.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Extensive consultations were held on the renewal of this program prior to the inclusion of the enabling legislation in the Economic Action Plan 2013 Act, No. 1, which received royal assent in June 2013. The regulations governing this program are being reviewed in order to implement the technical changes (e.g., the requirement for consultations with provincial and territorial officials) announced at the December 2012 Finance Ministers' meeting.

Name of transfer payment program: Territorial Formula Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act).

Start date: 1985

End date: Ongoing

Description: Territorial Formula Financing payments are made to all territorial governments and provide the resources they need to deliver services that are comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to territories.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 2,663.6 2,876.1 3,110.7 3,110.7 3,110.7
Total program 2,663.6 2,876.1 3,110.7 3,110.7 3,110.7

Comments on variances: The increase in actual spending from 2011–12 to 2012–13 is attributable to the increase in the gap between the measured proxies of territorial expenditure need and their measured revenue capacities.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Extensive consultations were held on the renewal of this program prior to the inclusion of the enabling legislation in the Economic Action Plan 2013 Act, No. 1, which received royal assent in June 2013. The regulations governing this program are under review, in order to implement the technical changes (e.g., the requirement for consultations with provincial and territorial officials) announced at the December 2012 Finance Ministers' meeting.

Name of transfer payment program: Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004

End date: Ongoing

Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the Canada Health Act's national criteria (comprehensiveness, universality, portability, accessibility, and public administration), conditions, and prohibitions against user fees and extra-billing.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 25,605.4 26,941.8 28,569.0 28,568.6 28,568.6 0.4
Total program 25,605.4 26,941.8 28,569.0 28,568.6 28,568.6 0.4

Comments on variances: The increase in actual spending from 2011–12 to 2012–13 is attributable to the legislated 6 per cent annual escalation of the Canada Health Transfer. In addition, the amounts from 2011–12 and 2012–13 include amounts for deductions under the Canada Health Act.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: The program was renewed as part of the Jobs, Growth and Long-term Prosperity Act, which received royal assent in June 2012.

Name of transfer payment program: Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004

End date: Ongoing

Description: The Canada Social Transfer (CST) provides equal per capita cash support to provincial and territorial governments to assist them in financing social programs, post-secondary education, and programs for children. The CST gives provinces and territories the flexibility to allocate payments to those areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 11,178.8 11,514.0 11,859.5 11,859.5 11,859.5
Total program 11,178.8 11,514.0 11,859.5 11,859.5 11,859.5

Comments on variances: The increase in actual spending from 2011–12 to 2012–13 is attributable to the legislated annual 3 per cent escalation of the CST program.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: The program was renewed as part of the Jobs, Growth and Long-term Prosperity Act, which received royal assent in June 2012.

Name of transfer payment program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities)

Start date: 1867

End date: Ongoing

Description: Statutory subsidies provide a source of funding to provinces in accordance with their terms of entry into Confederation.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 32.1 32.1 32.1 32.1 32.1
Total program 32.1 32.1 32.1 32.1 32.1

Comments on variances: Not applicable

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)

Start date: 1964

End date: Ongoing

Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfers. In the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Quebec continues to receive the value of these tax points through its own income tax system and reimburses the Government of Canada for the discontinued programs for which it had received a tax point transfer. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments and recoveries that met all legislative requirements

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments (678.2) (709.6) (746.2) (736.5) (736.5) (9.7)
Total program (678.2) (709.6) (746.2) (736.5) (736.5) (9.7)

Comments on variances: The variance between planned spending and actual spending is attributable to prior-year adjustments and to a revised estimate of the 2012–13 recovery made in March 2013. The recovery for 2012–13 was greater than the recovery for 2011–12 because the value of the estimated tax points was greater in 2012–13.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act)

Start date: 1977

End date: Ongoing

Description: The Alternative Payments for Standing Programs is a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer (CHT) and Canada Social Transfer (CST) tax point transfers. In the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Since Quebec, like other provinces, receives its full cash entitlement under the CHT and CST, the value of these tax points is reimbursed to the Government of Canada each year. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments and recoveries that met all legislative requirements

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments (3,072.6) (3,219.7) (3,388.7) (3,357.0) (3,357.0) (31.7)
Total program (3,072.6) (3,219.7) (3,388.7) (3,357.0) (3,357.0) (31.7)

Comments on variances: The variance between planned spending and actual spending is attributable to prior- year adjustments arising from revisions to prior open years as well as to a revised estimate of 2012–13 recoveries made in February 2013. The recovery for 2012–13 was greater than the recovery for 2011–12 because the value of the estimate tax points was greater in 2012–13.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: A comprehensive review of this transfer payment program, including consultations, was conducted before the changes to its enabling legislation were included in the Jobs, Growth and Long-term Prosperity Act,which was given royal assent in June 2012.

Name of transfer payment program: Wait Times Reduction Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004–05

End date: 2013–14

Description: As part of the 10-Year Plan to Strengthen Health Care, the Government of Canada committed support to the provinces and territories to help reduce wait times in the health care system—primarily in support of human resources and tools to manage wait times. A total of $4.25 billion was provided through a third-party trust fund in 2004 and was notionally allocated over five years, from 2004–05 to 2008–09. This amount was paid in full. From 2009–10 to 2013–14, annual funding of $250 million will be provided to the provinces and territories through cash transfer payments.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 250.0 250.0 250.0 250.0 250.0
Total program 250.0 250.0 250.0 250.0 250.0

Comments on variances: Not applicable

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. The Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Payment to Ontario Related to the Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2009–10

End date: 2010–11

Description: Direct payments are made to the Government of Ontario to ensure that its per capita cash entitlements in relation to the Canada Health Transfer are the same as those for other provinces receiving Equalization.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Ontario.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 160.4 (18.0) 93.7 93.7 (93.7)
Total program 160.4 (18.0) 93.7 93.7 (93.7)

Comments on variances: The amount of the transfer payment was determined in October 2012, which was after the 2012–13 Report on Plans and Priorities was prepared. The increase in actual expenditures from 2011–12 to 2012–13 was attributable to the incorporation of revised corporate taxable income data for 2010 into two official estimates between October 2011 and October 2012.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Incentive for Provinces to Eliminate Taxes on Capital (Part IV—Federal-Provincial Fiscal Arrangements Act)

Start date: 2007–08

End date: 2010–11

Description: Financial incentive to encourage provinces to eliminate provincial capital taxes or restructure an existing capital tax on financial institutions into a minimum tax

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: All provinces' general capital taxes were eliminated as of July 2012, which has strengthened Canada's business tax advantage and increased the competitiveness of businesses.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 160.9 0.9 5.5 5.5 (5.5)
Total program 160.9 0.9 5.5 5.5 (5.5)

Comments on variances: No amount was included in planned spending for 2012–13 because eligible provinces did not provide the required information used to determine final payments. The increase in actual spending from 2011–12 to 2012–13 reflects the temporary nature of the incentive, which applies only to revenues forgone between March 18, 2007, and January 1, 2011. The payment in 2012–13 is a final payment to one province in respect of revenues forgone in 2009–10.

Audits completed or planned: Not applicable

Evaluations completed or planned: Not applicable

Engagement of applicants and recipients: Federal transfer payments related to the elimination of provincial capital taxes are determined by Part IV of the Federal-Provincial Fiscal Arrangements Act. The framework for compensation was legislated on December 14, 2007.

Name of transfer payment program: Additional Fiscal Equalization Offset Payment to Nova Scotia (Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act)

Start date: 2011–12

End date: 2019–20

Description: This payment is related to the 2005 Offshore Arrangement between the Government of Canada and the Province of Nova Scotia. The Arrangement guaranteed Nova Scotia that its Equalization payments would not be reduced due to offshore oil and gas revenues that entered the formula. The payment is derived by applying the Equalization formula with and without offshore oil and gas revenues and comparing the resulting Equalization payments.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Nova Scotia

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 33.7 146.1 146.1 146.1
Total program 33.7 146.1 146.1 146.1

Comments on variances: The increase in expenditures from 2011–12 to 2012–13 is attributable to an increase in Nova Scotia's offshore oil and gas revenues.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Additional Fiscal Equalization to Nova Scotia (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 2011–12

End date: 2019–20

Description: This payment is related to the 2005 Offshore Arrangement between the Government of Canada and the Province of Nova Scotia. Following the introduction of a new formula for Equalization in 2007, Nova Scotia was guaranteed that on a cumulative basis over the lifetime of the Accord, beginning in 2008–09, the new formula would not reduce its Equalization payments and 2005 Offshore Arrangements payments when compared with the payments the province would have received under the formula that was in place when it signed its 2005 Offshore Arrangement.

Strategic outcome: A strong economy and sound public finances for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to Nova Scotia

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 82.7 325.8 297.3 297.3 28.5
Total program 82.7 325.8 297.3 297.3 28.5

Comments on variances: The variance between planned spending and actual spending occurred because the official calculation in December 2012 to determine the amount of the transfer payment was made after the 2012–13 Report on Plans and Priorities was prepared. The increase in actual spending from 2011–12 to 2012–13 was attributable to lower growth of combined Equalization and 2005 Offshore Equalization Offset payments in the new formula, compared with the formula that had been in place prior to 2007.

Audits completed or planned: The Office of the Auditor General of Canada's annual financial audit was completed in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed an Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Extensive consultations were held on the renewal of this program prior to the inclusion of the enabling legislation in the Economic Action Plan 2013 Act, No. 1, which received royal assent in June 2013. The regulations governing this program are being reviewed in order to implement the technical changes (e.g., the requirement for consultations with provincial and territorial officials) announced at the December 2012 Finance Ministers' meeting.

Name of transfer payment program: Additional Fiscal Equalization Payment – Total Transfer Protection (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 2012–13

End date: 2012–13

Description: The Total Transfer Protection payments were first announced in December 2009 for 2010–11 and were extended to 2011–12, 2012–13 and then to 2013–14, as announced by the Minister of Finance at Meech Lake in December 2012. For 2012–13, the amounts were calculated to prevent declines in major transfers between 2011–12 and 2012–13. Specifically, a comparison was made of the sum of Equalization, the Canada Health Transfer, the Canada Social Transfer, and Total Transfer Protection payments made in 2011–12.

Strategic outcome: A strong economy and sound public finances for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 509.5 952.1 679.7 679.7 (679.7)
Total program 509.5 952.1 679.7 679.7 (679.7)

Comments on variances: No amount was included in planned spending for 2012–13 because the 2012–13 Report on Plans and Priorities was prepared before the payment was legislated in Budget 2012 and given royal assent in June 2012. The decrease in actual spending from 2011–12 to 2012–13 was attributable to the annual escalation of the major transfer payments, which in turn resulted in a reduced need for the Total Transfer Protection payment.

Audits completed or planned: The Office of the Auditor General of Canada completed its annual financial audit in August 2013. In addition, the Department of Finance Canada's Internal Audit and Evaluation Group completed the Audit of the Control Framework for the Transfer Payments Process in December 2012. The audit report is available on the Department's website.

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Not applicable

Name of transfer payment program: Payments to Provinces Regarding Sales Tax Harmonization (Part III.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2010

End date: 2014

Description: The Government of Canada entered into Comprehensive Integrated Tax Coordination Agreements (CITCAs) with Ontario, British Columbia, Quebec, and Prince Edward Island following the decisions of these provinces to harmonize their provincial sales taxes with the federal Goods and Services Tax. As part of the CITCAs, the federal government agreed to make assistance payments to these provinces.

Following a referendum, British Columbia exited the Harmonized Sales Tax on April 1, 2013. British Columbia is repaying the $1.599 billion in assistance that it received at $319.8 million per year over a five-year period (2011–12 to 2015–16).

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Harmonization of provincial sales taxes with the Goods and Services Tax

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 3,769.0 1,560.2 733.0 438.2 438.2 294.8
Total program 3,769.0 1,560.2 733.0 438.2 438.2 294.8

Comments on variances: The difference between planned and actual spending for 2012–13 is attributable to the $25 million paid to Prince Edward Island under its CITCA and to the $319.8 million returned by British Columbia in 2012–13, following its decision to exit the Harmonized Sales Tax. The decrease in payments between 2011–12 and 2012–13 is in accordance with the schedule of assistance payments agreed to with Quebec and Prince Edward Island under their CITCAs. The $438.2 million in actual spending for 2012–13 represents the $733 million and the $25 million in payments to Quebec and Prince Edward Island respectively, minus the return of the payment made by British Columbia in that year.

Audits completed or planned: Not applicable

Audits completed or planned: Not applicable

Engagement of applicants and recipients: CITCAs were signed with provinces that harmonized their provincial sales taxes with the federal Goods and Services Tax. The agreements provide for the rights and obligations of the parties.

Name of transfer payment program: Debt Payments on Behalf of Poor Countries to International Organizations pursuant to section 18(1) of the Economic Recovery Act (stimulus)

Start date: 2010

End date: 2054

Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Payments to international organizations were consistent with the Government of Canada's commitments under the Multilateral Debt Relief Initiative.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 73.4 51.2 51.2 51.2 51.2
Total program 73.4 51.2 51.2 51.2 51.2

Comments on variances: Not applicable

Audits completed or planned: The Office of the Auditor General of Canada completed an audit of federal spending on official development assistance delivered through multilateral organizations in March 2013. The audit report, which is available in the 2013 Spring Report of the Auditor General of Canada, Chapter 4—“Official Development Assistance through Multilateral Organizations,” did not comment on payments under the Multilateral Debt Relief Initiative.

Evaluations completed or planned: Not applicable

Engagement of applicants and recipients: Recipients were engaged through the biennial Official Development Assistance Accountability Act consultations.

Name of transfer payment program: Toronto Waterfront Revitalization Initiative (Vote 5)

Start date: April 2001

End date: March 31, 2014

Description: The Toronto Waterfront Revitalization Initiative (TWRI) is both an infrastructure and an urban renewal investment. The goals of the initiative include positioning Canada, Ontario, and Toronto in the new economy, thereby ensuring Canada's continued success in the global economy. This includes increasing economic growth and development opportunities; recognizing the intrinsic links between economic, social, and environmental health; enhancing the quality of life in Toronto; and encouraging sustainable urban development.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: The remaining federally funded projects were completed in 2012–13, providing increased public accessibility and a revitalized urban infrastructure. The administration of the program will wind up no later than March 31, 2014. Given the impending end of the program, a number of projects were closed out during 2012–13.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions 53.6 20.5 10.0 10.0 (10.0)
Total other types of transfer payments
Total program 53.6 20.5 10.0 10.0 (10.0)

Comments on variances: The variance between planned spending and actual spending as well as the year-over-year variance is attributed to program funds being re-profiled in 2012–13, to meet new project requirements.

Audits completed or planned: A recipient audit of the District Energy System project was completed with the assistance of an external auditor in May 2012.

Evaluations completed or planned: The Internal Audit and Evaluation Group will conduct a program evaluation of the TWRI in 2013–14. The proposed evaluation is in compliance with the Treasury Board Policy on Evaluation, which requires departmental direct spending to be evaluated at least once every five years, and with the Financial Administration Act, which requires contribution program spending to be evaluated once every five years.

Engagement of applicants and recipients: In addition to frequent discussions and monthly teleconferences to monitor federally funded projects, working group meetings are held quarterly and are attended by the Toronto Waterfront Revitalization Corporation and the three levels of government.

Name of transfer payment program: Harbourfront Centre Funding Program (Vote 5)

Start date: March 2006

End date: March 31, 2016

Description: The primary objective of the Harbourfront Centre Funding Program (HCFP) is to provide operational funding support to Harbourfront Centre until March 31, 2016. The support assists Harbourfront Centre in covering its fixed operational costs. The funding program also facilitates Harbourfront Centre's ability to leverage funding from other levels of government and to pursue other revenue-generating strategies that allow the organization to provide the general public with continued access to cultural, recreational, and educational programs and activities held in Toronto's waterfront area.

Strategic outcome: A strong economy and sound public finances for Canadians

Results Achieved: Harbourfront Centre received $5 million in funding for administrative and operational costs, helping the organization to leverage funding from other sources and to pursue revenue-generating strategies. Accordingly, the organization continued its operations, providing community and cultural programming for the general public on Toronto's waterfront.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions 4.2 7.0 5.0 5.0 5.0
Total other types of transfer payments
Total program 4.2 7.0 5.0 5.0 5.0

Comments on variances: The decrease in actual spending from 2011–12 to 2012–13 is consistent with the planned annual spending for the program established in Budget 2011.

Audits completed or planned: Not applicable

Evaluations completed or planned: The Internal Audit and Evaluation Group will conduct a program evaluation of the HCFP in 2013–14. The proposed evaluation is in compliance with the Treasury Board Policy on Evaluation, which requires departmental direct spending to be evaluated at least once every five years, and with the Financial Administration Act, which requires contribution program spending to be evaluated once every five years.

Engagement of applicants and recipients: In addition to frequent discussions with Harbourfront Centre, to monitor federal funding, the federal TWRI Secretariat engaged an external consultant to provide expert advice on the development of Harbourfront Centre's sustainability strategy. The 2011 budget decision to renew the HCFP included a requirement for Harbourfront Centre to submit a sustainability strategy for the next three years, providing a business plan for the organization to increase its revenues, sponsorships, and private sector donations.

Name of transfer payment program: Payments to the International Development Association

Start date: 1960

End date: Ongoing

Description: This program provides encashment of demand notes to allow the International Development Association to disburse concessional financing for development projects and programs in the world's poorest countries.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Payments were consistent with the Government of Canada's commitments.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 384.3 441.6 441.6 441.6 441.6
Total program 384.3 441.6 441.6 441.6 441.6

Comments on variances: Not applicable

Audits completed or planned: The Office of the Auditor General of Canada completed an audit of federal spending on official development assistance delivered through multilateral organizations in March 2013. The audit report can be found in the 2013 Spring Report of the Auditor General of Canada, Chapter 4—“Official Development Assistance through Multilateral Organizations.”

Evaluations completed or planned: The Department of Finance Canada's Internal Audit and Evaluation Group completed an evaluation of Canada's payments to the International Development Association in January 2012. The evaluation report is available on the Department's website.

Engagement of applicants and recipients: Recipients were engaged through spring and annual meetings of the World Bank Group, and through the biennial Official Development Assistance Accountability Act consultations.

Name of transfer payment program: International Bank for Reconstruction and Development for the Agriculture Advance Market Commitment (Bretton Woods and Related Agreements Act, Section 8)

Start date: 2010–11

End date: 2014–15

Description: AgResults (formerly the Agriculture Advance Commitment) bridges the gap between public and private investment in the agricultural sector in support of global food security through the use of pull mechanisms, such as advance market commitments, which make payments once results are achieved.

Strategic outcome: A strong economy and sound public finances for Canadians

Results achieved: Payments were timely, accurate, and consistent with the Government of Canada's commitments for financial support to AgResults.

Program: Transfer and Taxation Payment Programs ($ millions)
2010–11 Actual
Spending
2011–12 Actual
Spending
2012–13 Planned
Spending
2012–13 Total
Authorities
2012–13 Actual
Spending
Variance
Total grants
Total contributions
Total other types of transfer payments 9.0 10.0 10.0 (10.0)
Total program 9.0 10.0 10.0 (10.0)

Comments on variances: The variance between planned spending and actual spending occurred because the funding details for the program were not finalized in time for inclusion in the 2012–13 Report on Plans and Priorities. The increase in actual spending from 2011–12 to 2012–13 was attributable to the Cabinet-approved disbursement profile, which features different payments for different years.

Audits completed or planned

The Department's Internal Audit and Evaluation Group has planned an audit of Financial Commitments to the World Bank, including payments made in the context of AgResults, to be completed in 2013-14.

Evaluations completed or planned: Not applicable

Engagement of applicants and recipients: Not applicable

Greening Government Operations

Notes:

  • “RPP” refers to the Report on Plans and Priorities and represents planned or expected results.
  • “DPR” refers to the Departmental Performance Report and represents actual results.
  • “Departments” refers to departments and agencies.
  • “FY” refers to fiscal year.

Surplus Electronic and Electrical Equipment Target

8.6 By March 31, 2014, each department will reuse or recycle all surplus electronic and electrical equipment (EEE) in an environmentally sound and secure manner.
Performance Measure RPP DPR
Target Status On Track
Existence of an implementation plan for the disposal of all departmentally generated EEE.   No Not applicable
Total number of departmental locations with an EEE implementation plan fully implemented, expressed as a percentage of all locations, by the end of the given fiscal year FY 201213 Not applicable Not applicable 
Strategies and/or Comments
  1. Scope: Location of facilities is 140 O'Connor, Ottawa, Ontario. This is the only location for the Department of Finance Canada. 
  2. Processes: The disposal of electronic and electrical equipment was a shared service provided by the Treasury Board of Canada Secretariat until April 1, 2013, when the responsibility was reintegrated into the Department of Finance Canada. A new departmental Asset Management Framework, including an EEE plan, has been drafted. The Department will fully implement the EEE plan in 100 per cent of its locations by 2013–14.
  3. Reporting: Reporting requirements and mechanisms will be established to evaluate the effectiveness of the implementation plan. 
  4. Continuous improvement: Plans and procedures will be established to ensure that the target is met.

Printing Unit Reduction Target

8.7 By March 31, 2013, each department will achieve an 8:1 average ratio of office employees to printing units. Departments will apply the target where building occupancy levels, security considerations, and space configuration allow.
Performance Measure RPP DPR
Target Status On Track 
Ratio of departmental office employees to printing units in fiscal year 201011, where building occupancy levels, security considerations and space configuration allow. (Optional)  2:1 2.2:1 
Ratio of departmental office employees to printing units at the end of the given fiscal year, where building occupancy levels, security considerations and space configuration allow. FY 201213 8:1 12:1
Strategies and/or Comments
  1. Definition: The Department of Finance Canada defined a printing unit as stand-alone and networked printers as well as multi-functional devices.
  2. Scope: For security reasons, fax and scanning functionality is limited to such multi-functional devices as desktop scanners and faxes and to print units supporting the secure network environment.
  3. Number of print units: The number of units was determined by physical inventory.
  4. Number of employees: All employees of the Department working in L'Esplanade Laurier will be included, to be determined in consultation with Human Resources specialists.
  5. Processes: Printers and copiers are being transitioned to a centrally managed and funded model in order to reduce the indiscriminate purchase of printers, and to more effectively manage these resources, with full implementation targeted for the Department's move to 90 Elgin Street.
  6. Comments: During 2011–12, the Department implemented a second network for security purposes. This network required a separate print infrastructure. In implementing this print infrastructure, the Department reallocated existing printers and multi-functional devices, and also replaced existing copiers with multi-functional devices when possible, to minimize the impact on printer reduction targets.

Paper Consumption Target

8.8 By March 31, 2014, each department will reduce internal paper consumption per office employee by 20%. Each department will establish a baseline between 200506 and 201112, and an applicable scope.
Performance Measure RPP DPR
Target Status Opportunity for Improvement
Number of sheets of internal office paper purchased or consumed per office employee in the selected baseline year, according to the departmental scope.
(Baseline 2010-11)
Not applicable*  
Cumulative reduction (or increase) in paper consumption, expressed as a percentage, relative to the selected baseline year.  FY 201213   New baseline established 10,246
Strategies and/or Comments
  1. Scope: All multi-purpose paper (8.5 x 11, 8.5 x 14, 11 x 17) for office-related operations within the Department of Finance Canada.
  2. Number of Employees: All employees of the Department will be included, to be determined in consultation with Human Resources specialists.
  3. Method of determining paper baseline: *The warehousing and distribution of photocopy paper was a shared service provided by the Treasury Board of Canada until 2011–12. As paper stocks were not segregated in 2010-11 or 2011–12, paper usage could only be estimated. Beginning in 2012–13, paper inventories were segregated and an accurate baseline established.
  4. Processes: The acquisition of paper is done solely using the Public Works and Government Services Canada's (PWGSC's) Green Standing Offer for paper.
  5. Communications and Continuous Improvement: Employees are made aware of paper reduction practices through ongoing communication, including employee information sessions and the intranet.
  6. Links: The print optimization and paper reduction targets are closely linked. Therefore, environmental management and information technology (IT) specialists worked toward implementing duplex printing as the default on print devices to reduce paper usage.
  7. Comments: The average number of sheets of paper consumed per office employee in 2012–13 was 10,246. This number will serve as the new baseline.
  8. Reporting: The Department will continue to report annually on paper reduction targets.

Green Meetings Target

8.9 By March 31, 2012, each department will adopt a guide for greening meetings.
Performance Measure RPP DPR
Target Status Achieved 
Presence of a green meetings guide. Yes  Yes
Strategies and/or Comments
  1. Scope: Meetings held within or by the Department of Finance Canada. 
  2. Processes: The guide is used by meeting organizers and participants to reduce the environmental impacts of meetings held within, or by, the Department.
  3. Communications and Engagement: The guide is posted on the Department's intranet and was promoted at the Department's Enviro Fair. 

Green Procurement Targets

8.10 As of April 1, 2011, each department will establish at least three SMART green procurement targets to reduce environmental impacts.

1. By March 31, 2014, 50% of new contracts for services will have environmental considerations built into them.
Performance Measure RPP DPR
Target Status On Track to Exceed
Percentage of services contracts with environmental criteria relative to the total number of services contracts awarded. Not applicable
Progress against performance in the 2012–13 fiscal year. 30% 50%
Strategies and/or Comments
  1. Scope: Departmental contracts over $10,000 were included in the definition. Any environmental criteria identified are consistent with those recommended in the Guideline for Greening Services Procurement.
In 2012–13, only those contracts awarded by the Department of Finance Canada through consolidated procurement instruments developed by PWGSC were reported as including environmental criteria. This represents approximately 50% of the Department's contracts. Contracts awarded by PWGSC were not included.
  1. Performance: Most of the Department's service contracts focus on consultation, advice, and report preparation. The Department has focused on the greening of contracting processes to reduce the environmental impact of its contracting activity, as follows:
    • All bid solicitations are transmitted electronically.
    • Bidders are instructed to submit bids electronically.
    • Contract documents are printed using the duplex printing option on paper with 30 per cent post-consumer recycled content, and then circulated electronically for signatures using scanning technology, to reduce paper consumption.
    • Suppliers are encouraged to submit invoices electronically. A direct-deposit pilot project is underway, eliminating the requirement to print and distribute cheques.
    • In addition, departmental managers are encouraged to minimize contractor travel by using video and telephone conferencing, and to correspond electronically whenever possible and appropriate.
  1. Processes: The Department uses PWGSC's consolidated procurement instruments as required, including commodities such as temporary help services, IT professional services, and printing and publishing.
  2. Reporting: The Department will establish process requirements to track and report on progress toward the target.
  3. Communications and continuous improvement: The Department will continue to develop plans and strategies for departmental engagement and communications to ensure that the target is met.
2. By March 31, 2012, 90% of IT Hardware purchases will be environmentally preferred models.
Performance Measure RPP DPR
Target Status On Track
Percentage of IT Hardware purchases that meet the target relative to the total IT Hardware purchases. Not applicable
Progress against performance in the 2012–13 fiscal year. 90% 84%
Strategies and/or Comments
  1. Scope: “IT Hardware” is defined as desktop and notebook computers.
  2. Processes: The Department of Finance Canada used PWGSC's mandatory consolidated procurement instruments to purchase most desktop and notebook computers and IT Hardware. A small number of acquisitions were made outside the standing offer framework owing to specific performance requirements. These acquisitions were not reported as “environmentally preferred” because they were not on standing offer. It should be noted that the items purchased had similar environmental characteristics as those available on standing offers.
3. By March 31, 2013, 90% of furniture purchases will be environmentally preferred models.
Performance Measure RPP DPR
Target Status On Track
Percentage of furniture purchases meeting the target relative to the total percentage of all furniture purchases. Not applicable 
Progress against performance in the 2012–13 fiscal year 90% 91%
Strategies and/or Comments
  1. Scope: “Office furniture” is defined as chairs, cabinets, shelving, and panel and desk systems.
  2. Processes: The Department of Finance Canada used PWGSC's mandatory consolidated procurement instruments to purchase office furniture whenever possible.
  3. Reporting: The Department tracks and reports on progress toward the target.

8.11 As of April 1, 2011, each department will establish SMART targets for training, employee performance evaluations, and management processes and controls, as they pertain to procurement decision making.

Training for select employees

By March 31, 2014, 95% of functional specialists of procurement or materiel management will have green procurement training through the Canada School of Public Service (CSPS) course C215 or an in-house equivalent.
Performance Measure RPP DPR
Target Status Achieved
Percentage of functional specialists of procurement or materiel management with formal green procurement training relative to the total number of functional specialists of procurement or materiel management deemed as requiring training. Not applicable
Progress against performance in the 2012–13 fiscal year. 60% 100%
Strategies and/or Comments
  1. Scope: All departmental functional specialists in procurement or materiel management have completed green procurement training offered by the Canada School of Public Service (CSPS).
  2. Processes: The Department of Finance Canada uses CSPS course C215 or an in-house alternative and an appropriate delivery method.
  3. Comments: The Department of Finance Canada will continue to ensure that new functional specialists in procurement or materiel management complete C215 within one year of joining the Department.

Employee performance evaluations for managers and functional heads of procurement and materiel management.

By March 31, 2013, 100% of employee performance evaluations for managers and functional heads of procurement and materiel management will have a performance clause relative to green procurement.
Performance Measure RPP DPR
Target Status Achieved
Percentage of materiel managers, procurement personnel and functional specialists with a green procurement clause in their performance evaluation relative to the total number of materiel managers, procurement personnel and functional specialist staff deemed as relevant. Not applicable
Progress against performance in the 2012–13 fiscal year. 100% 100%
Strategies and/or Comments
  1. Scope: The Director, Contracting and Procurement and the Team Leader, Contracting and Procurement.
  2. Results: The Director and the Team Leader had performance clauses related to green procurement in their performance evaluations.

Management processes and controls.

By March 31, 2014, 50% of all identified procurement processes and controls will ensure environmental performance considerations are integrated into the procurement process.
Performance Measure RPP DPR
Target Status On Track to Exceed
Percentage of identified procurement processes and controls with environmental performance considerations integrated relative to the total number of identified procurement processes and controls. Not applicable
Progress against performance in the 2012–13 fiscal year. 30% 50%
Strategies and/or Comments
  1. Scope: The Department of Finance Canada has defined all departmental contracts as being in scope for environmental performance considerations.
  2. Processes: Contracting in the Department is centralized. All contracting and procurement, with the exception of acquisition card transactions, are reviewed and carried out by functional specialists in procurement. Functional specialists have completed training on green procurement offered by the Canada School of Public Service. Acquisition cardholders also receive green procurement training. The Department has developed green procurement checklists for goods and services to aid procurement specialists in promoting the inclusion of environmental performance considerations in contracts. In developing contracting strategies, the Department considers and recommends the use of PWGSC consolidated procurement instruments (which include environmental performance criteria) for much of its procurement. The Department has also greened its internal procurement operations to minimize environmental impacts.
  3. Reporting: The Department will continue to monitor and report on contract activity and qualitative efforts to incorporate environmental criteria into the contracting process and controls.
  4. Communications and continuous improvement: Contracting and procurement staff will continue to promote the inclusion of environmental considerations into contracting processes.

Reporting on the Purchase of Offset Credits

Mandatory reporting on the purchase of greenhouse gas emissions offset credits, according to the Policy Framework for Offsetting Greenhouse Gas Emissions from Major International Events.
Performance Measure RPP DPR
Quantity of emissions offset in the given fiscal year. (Optional for all RPPs) Not applicable  
Strategies and/or Comments
  1. The Department of Finance Canada did not purchase offset credits in 2012–13. 

Green Procurement Reporting for Departments and Agencies Not Bound by the Federal Sustainable Development Act

Departments and agencies bound by the Policy on Green Procurement but not the Federal Sustainable Development Act must complete mandatory reporting, in compliance with Section 7 of the Policy on Green Procurement.

Strategies and/or Comments

  1. The Department of Finance Canada is bound by the Federal Sustainable Development Strategy and will meet the requirements of the Policy on Green Procurement through the Departmental Sustainable Development Strategy.

Voluntary Reporting on Any Other Greening Government Operations Initiative

The Department will reuse its surplus office supplies internally by offering a Surplus Supplies Store for use by the Administrative Officer community. Any additional surplus office supplies will be donated to non-profit organizations in the National Capital Region.
Performance Measure RPP DPR
Target Status    
Quantity of skids of supplies reused and sent to non-profit organizations. (Baseline 2010–11) 7
Progress against performance in the 2012–13 fiscal year. Not applicable  
Strategies and/or Comments
  1. Sources of Supplies: The Department of Finance Canada worked with the Administrative Officer community to encourage reuse and recycling of surplus office supplies.
  2. Processes: Corporate Services staff and volunteers from the Green Citizenship Network triage the surplus supplies and ensure that they are reused within the Department or donated to non-profit organizations.
  3. Donations: The Department directed surplus office supplies to registered non-profit organizations as appropriate.  
  4. Reporting: The Department tracks and reports on the number of skids of supplies donated.
  5. Communications and continuous improvement: The Department will continue to communicate the environmental and financial benefits of reusing supplies. 
By March 31, 2014, 75% of acquisition cardholders will have green procurement training through the CSPS course C215 or an in-house equivalent.
Performance Measure RPP DPR
Target Status On Track
Percentage of acquisition cardholders trained in green procurement relative to the total number of acquisition cardholders.    
Progress against performance in the 2012–13 fiscal year. 85% 85%
Strategies and/or Comments
  1. Scope: The target applies to all departmental acquisition cardholders.
  2. Processes: The Department has developed an in-house presentation on green procurement for the administrative community, including acquisition cardholders. The objective of the presentation is to provide cardholders with a basic understanding and appreciation of green procurement, and to raise awareness of the benefits of “buying green” in both a business and personal context. The presentation includes key elements of the C215 course offered by the Canada School of Public Service.
  3. Number of acquisition cardholders: The Department has approximately 100 acquisition cardholders.
  4. Reporting: Although turnover of cardholders is low, mandatory training will be provided periodically to all new cardholders.
  5. Communications and continuous improvement: The Department continued to communicate with employees to raise environmental awareness.
By March 31, 2014, 7.5% of Department of Finance Canada employees will be members of the Green Citizenship Network.
Performance Measure RPP DPR
Target Status On Track
Percentage of personnel who are members of the Department's Green Citizenship Network. (Baseline November 2010) 6.17% 
Progress against performance in the 2012–13 fiscal year. 7% 2.5%
Strategies and/or Comments
  1. Processes: The Department of Finance Canada's Green Citizenship Network (GCN) is a network of environmentally conscious employees from the Department. GCN members promote environmental stewardship in the workplace and are responsible for implementing the principles of sustainable development within the Department.
  2. Reporting: The Department continued to track participation in the GCN.
  3. Comments: Participation in the GCN dropped in 2012–13. The Department promotes GCN participation at events, such as “Enviro Fair,” and at orientation sessions for new employees.

Horizontal Initiatives

Name of horizontal initiative: Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime

Name of lead department(s): Department of Finance Canada

Lead department PAA Program: Economic and Fiscal Policy Framework

Start date: June 2000

End date: Ongoing

Total federal funding allocation (from start date to end date): $690.6 million†

Description of the horizontal initiative (including funding agreement): Canada's AML/ATF Regime was formally established in 2000 as the National Initiative to Combat Money Laundering (NICML), as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act, created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the Proceeds of Crime (Money Laundering) Act was amended to include measures to fight terrorist financing activities and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).

The NICML was expanded and its name formally changed to “Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime.” In December 2006, royal assent was given to amendments to the PCMLTFA to further align Canada's legislation with international AML/ATF standards established by the Financial Action Task Force (FATF), and respond to areas of domestic risk. The amendments included enhanced client identification requirements, the creation of a registration regime for money services businesses, and the establishment of an administrative and monetary penalties regime to deal with lesser infractions of the PCMLTFA.

Shared outcome(s): To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist (ML\TF) financing offences.

Governance structure(s): Canada's AML/ATF Regime is a horizontal initiative composed of both funded and non-funded partners. The funded partners are the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada (PPSC), FINTRAC, the Canada Border Services Agency (CBSA), the Canada Revenue Agency (CRA), the Canadian Security Intelligence Service (CSIS), and the Royal Canadian Mounted Police (RCMP). The non-funded partners are Public Safety Canada, the Office of the Superintendent of Financial Institutions Canada (OSFI), and Foreign Affairs and International Trade Canada. An interdepartmental Assistant Deputy Minister-level group and working group, consisting of all partners and led by the Department of Finance Canada, has been established to direct and coordinate the government's efforts to combat ML/TF activities. In addition, the Department also chairs a Public/Private Sector Advisory Committee. This broad-based advisory committee is composed of both public and private sector representatives who provide general guidance for Canada's AML/ATF Regime.

Performance highlights: In 2012–13:

The Department of Finance Canada supported the government's commitments to the AML/ATF Regime, including the final publication in January 2013 of amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations pertaining to ascertaining identity.

The PPSC dealt with a number of new AML/ATF Regime-related charges, including 4,856 related to the possession of proceeds of crime and 35 related to money laundering under the Criminal Code, and 14 charges under the PCMLTFA.

FINTRAC produced 919 case disclosures of financial intelligence.

The RCMP implemented a new Federal Policing model that focuses criminal intelligence resources on National Tactical Enforcement Priority investigations, as well as on other federal policing priority investigations.

The CRA completed 171 audits based upon information contained in FINTRAC disclosures, with total federal income taxes reassessed in the amount of $24,342,703 and total Goods and Services Tax/Harmonized Sales Tax reassessed in the amount of $849,401.

The CBSA performed 1,109 seizures under the PCMLTFA, totaling $28 million.

Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime
        2012–13
($ millions)
       
Federal partners PAA Programs Contributing activities/programs Total allocation (from start date to end date)
($ millions)
Planned spending Actual spending Expected results Contributing activity/ program results
(using specific indicators)
Department of Finance Canada Financial Sector Policy Policy Development and Oversight of Anti-Money Laundering and Anti-Terrorist Financing Regime $3.9 $0.3 $0.3 The Department of Finance Canada will continue its effective oversight of Canada's AML/ATF Regime. The Department will also focus on the following areas: The Department of Finance Canada continued its effective oversight of Canada's AML/ATF Regime. The Department:
            Monitoring the financial sector for ML/TF risks and other emerging illicit financing risks; Monitored the financial sector for ML/TF and illicit financing risks. The Department also initiated work to develop a ML/TF risk assessment framework for Canada;
            Participating in strategic domestic and international policy development activities that support the government's commitments to the AML/ATF Regime, including continuing work on proposed amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations on ascertaining identity; Participated in strategic domestic and international policy development activities that support the government's commitments to the AML/ATF Regime, including the final publication in January 2013 of amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations, pertaining to ascertaining identity;
            Working to address the recommendations from the 10-year Treasury Board-mandated evaluation of the AML/ATF Regime; Continued to address the recommendations from the 10-year Treasury Board-mandated evaluation of the AML/ATF Regime.

Announced in Budget 2013 that the government will consult Canadians on the issue of corporate transparency;
            Heading the Canadian delegation to, and participating as an active member in, the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), as a Cooperative and Supporting Nation to the Caribbean Financial Action Task Force (CFATF), and as an observer on the Financial Action Task Force of South America Against Money Laundering (GAFISUD); Contributed to the development of FATF policy, including supporting work to develop the methodology to assess countries' compliance with the 2012 revised international FATF standards;

Participated in the development of a global threat assessment and in a number of ML/TF typology studies at the FATF, including those examining the ML/TF vulnerabilities of legal professionals, terrorist financing in West Africa, and ML/TF through the trade in diamonds;

Played a key role in the FATF process that publicly identifies and monitors high-risk jurisdictions;

Headed the Canadian delegations to the APG, CFATF, FATF, and GAFISUD; participated in G7 financial policy experts' meetings; and supported the work of the G20 Anti-Corruption Working Group, in coordination and consultation with AML/ATF Regime partners. Participated in the mutual evaluation processes to evaluate and rate countries' compliance with the FATF standards;
            Implementing the Budget 2010 measure related to counter-measures to tackle illicit financing; Completed the policy work necessary for implementation of Budget 2010 measures related to countermeasures to tackle illicit financing;
            Assessing the findings of the 5-year parliamentary review of the PCMLTFA; and Commenced work to assess the findings of the 5-year parliamentary review of the PCMLTFA, tabled on March 20, 2013. Consulted with the private sector on measures contained in the Department of Finance Canada's December 2011 consultation paper in support of the parliamentary review; and
            Continuing participation in national security-related horizontal initiatives led by Public Safety Canada. Continued to participate in national security-related horizontal initiatives led by Public Safety Canada.
Department of Justice Canada Legal Services to Government International Assistance Group (IAG) $7.3 $0.1 $0.1 The IAG (which is part of the Justice Litigation Branch) and the Criminal Law Policy Section (CLPS) of the Department of Justice Canada play a significant role in the AML/ATF Financing Regime. For 2012–13, it is anticipated that the IAG and CLPS will use the resources they receive to carry out work related to the FATF, including attending FATF-related international meetings and providing advice to AML/ATF Regime partners in relation to the FATF. These tasks may include support for, and attendance at, the meetings of the subgroups of the FATF—for example, the Working Group on Evaluation and Implementation, and FATF-Style Regional Bodies, including CFATF and GAFISUD. Resources will also be allocated to ensure the CLPS's continued involvement in policy development relating to ML/TF. Finally, the Human Rights Law Section will continue to participate, as required, with respect to constitutional issues raised about proposed amendments to the PCMLTFA or in the course of prosecutions. During 2012–13, the Department of Justice Canada, including the CLPS and particularly the Criminal sector of the Litigation Branch, continued to do operational work in support of Canada's AML/ATF Regime. Counsel continued to provide legal advice to the Department of Finance Canada and other AML/ATF Regime partners, and attended a number of FATF meetings. The AML/ATF funds earmarked for the Department of Justice Canada were entirely used for AML/ATF Regime-related purposes.
Public Prosecution Service of Canada Drug, Criminal Code and terrorism prosecution program Canada's AML/ATF Regime $14.8[2] $2.11 $6.0 In 2012–13, the PPSC will continue to provide legal advice and support to the RCMP and other law enforcement agencies during the course of investigations related to the proceeds of crime, ML/TF provisions of the Criminal Code as well as the PCMLTFA, and to undertake prosecutions that arise out of those investigations. In addition, the PPSC will continue to provide AML/ATF Regime-related training to law enforcement personnel and prosecutors, and to support policy development and coordination. Finally, the PPSC will support the work of the FATF, as required. The PPSC dealt with a number of new AML/ATF Regime-related charges during 2012–13, including 4,856 related to the possession of proceeds of crime and 35 related to money laundering under the Criminal Code, and 14 charges under the PCMLTFA. There were no charges related to the terrorism financing provisions of the Criminal Code during this period.

Provision of legal advice was recorded by in-house counsel for 65 per cent of the possession of proceeds of crime files, 94 per cent of the money laundering files, and 100 per cent of the PCMLTFA files that these new charges represent.

Finally, PPSC counsel provided both formal and ad hoc training to law enforcement personnel over the course of investigations. Resources were also dedicated to policy development and coordination to ensure consistency in prosecutorial services across all regions. The PPSC also supported the work of the FATF pertaining to the development of the methodology for the 4th Round of Assessments of partner regimes.
Financial Transactions and Reports Analysis Centre of Canada Financial Intelligence Program Financial Intelligence Program   $24.0 $23.1 FINTRAC's Financial Intelligence Program produces trusted and valued financial intelligence products, including tactical case disclosures on suspected ML/TF activities and other threats to the security of Canada, as well as strategic intelligence such as ML/TF trends reports, country- and group-based financial intelligence assessments, and vulnerability assessments of emerging financial technologies or services. The program's products are relied on, and sought after, by Canadian law enforcement at the federal, provincial and municipal levels; by counterpart agencies and domestic and international intelligence bodies; and by policy and decision makers working to identify emerging issues and vulnerabilities in the AML/ATF Regime.

In 2012–13, FINTRAC will continue to provide its partners, policy makers and other interested parties with timely and relevant financial intelligence products that contribute to the public safety of Canadians and will strive to disrupt the ability of criminals and terrorist groups that seek to abuse Canada's financial system while reducing the profit incentive of organized crime.
FINTRAC produced 919 case disclosures of financial intelligence in 2012–13. Of these, 719 were associated with money laundering, 157 dealt with cases of terrorist activity financing and other threats to the security of Canada, and 43 related to ML/TF. Case disclosures were received by nearly 1,500 recipients supporting criminal investigations at the municipal, provincial and federal levels across the country.

Of the 919 case disclosures, 69 per cent were initiated by voluntary information records (VIRs). VIRs are used by FINTRAC's investigative and intelligence partners to signal priority investigations where financial intelligence could make an important contribution. A total of 1,082 VIRs were received by FINTRAC in 2012–13.

FINTRAC also produced various types of strategic intelligence to support the priorities of the national security policy-making community, domestic regime partners, and the broader security and intelligence community. This included sharing analytics expertise, engaging with partners to further joint interests, and providing support as needed on ad hoc priority requests from the Government of Canada and allied partners.
  Compliance Program Compliance Program   $24.0 $23.1 As part of Canada's AML/ATF financing regime, FINTRAC seeks to counter ML/TF by improving the compliance behaviours of reporting entities with obligations under Part 1 of the PCMLTFA and related regulations, which include obligations for reporting, record keeping, identity verification and other requirements.

For 2012–13, FINTRAC will continue to use a risk-based approach to ensure that non-compliance with legislative obligations among reporting entities is detected and addressed through reporting and compliance assessments, and to ensure that reporting entities receive timely and accurate responses to their inquiries for information.
In 2012–13, FINTRAC conducted risk assessments in all reporting sectors to guide compliance activities. Although FINTRAC uses a suite of assessment and enforcement activities, examinations are the primary instrument used to determine whether reporting entities are complying with their legal obligations.

In 2012–13, FINTRAC conducted 1,157 examinations, exceeding the original planned objective for the year. FINTRAC also issued 4,008 compliance assessment reports to reporting entities across several sectors to help assess compliance regime obligations, to better inform the risk assessment of sectors, and to broaden its knowledge of the reporting entity populations.

FINTRAC's compliance program also responded to numerous enquiries concerning sector obligations and reporting requirements, along with many requests for policy interpretations. During 2012–13, FINTRAC responded to 5,206 telephone and email enquiries and 245 policy interpretation requests. In addition, FINTRAC delivered numerous information sessions and made presentations at several events, including a national workshop in Toronto that brought together 124 participants representing seven reporting sectors covered under the PCMLTFA.
Royal Canadian Mounted Police[3] Federal Policing Money Laundering Units $87.2 $7.0 $6.0 In 2012–13, the RCMP will realign its Anti-Money Laundering Teams to high-risk locations identified by national threat assessments. These realigned resources will be based in Ottawa, Calgary, Montreal, Vancouver and Toronto and will use financial criminal intelligence to initiate, based on priority, major projects and investigations. In 2012–13, the RCMP implemented a new Federal Policing model that focuses criminal intelligence resources on National Tactical Enforcement Priority investigations, as well as other federal policing priority investigations. These investigations are of national interest and are threats presented by either individuals or groups involved in ML/TF and other criminality. Financial criminal intelligence is a key factor in this new policing model. The contribution of criminal intelligence on these types of investigations provides the criminal intelligence support services in the field units.
    Anti-Terrorist Financing Units Regime $37.6 $5.0 $3.2 Through the gathering and analysis of financial intelligence, the Anti-Terrorist Financing Team (ATFT) will focus on converting financial criminal intelligence into proactive investigations for the Anti-Terrorist Financial Investigative Units, thus enhancing the ability to detect and deter terrorist financing activities. The ATFT will continue to work closely with domestic partners to further criminal investigations of terrorist financing and will participate and contribute to international forums such as the FATF and international law-enforcement working groups on terrorist financing. The ATFT supports counter-terrorism strategies related to terrorist financing, financial intelligence gathering, investigations, and enforcement.

In 2012–13, the RCMP opened 343 investigations requiring ATFT assistance, submitted 71 voluntary information reports to FINTRAC, and received 105 disclosures from FINTRAC.

The ATFT continues to provide training to the RCMP and partner agencies. In 2012–13, two Anti-Terrorist Financing courses were delivered, at which time 52 candidates received training.

The ATFT continues to support the FATF and the APG. Building on existing partnerships with the Department of Finance Canada (the lead department) and its partners, the RCMP has participated at five practitioners groups and conferences.

The Department continues to consult with the ATFT on FATF-related matters, such as international cooperation, information sharing and related projects.
Canada Revenue Agency Special Enforcement Program (SEP) Canada's AML/ATF Regime $28.2 $2.2 $2.2 The CRA is focusing on the following three key areas: participating in committees and initiatives that aim to manage and strengthen Canada's AML/ATF Regime; continuing to enhance operational relationships with FINTRAC and other AML/ATF Regime partners; and conducting analysis related to money laundering and tax avoidance and evasion, which includes conducting compliance action focused on individuals and entities that are participating in ML/TF activities.

In 2012–13, the Special Enforcement Program (SEP) will continue to process all disclosures from FINTRAC on a priority basis. The SEP will thoroughly review all disclosures received from FINTRAC and select for compliance actions those with identifiable tax and collection potential. The projected number of audits will remain at 90 cases, with a projected federal tax recovery of $9,000,000. Given the complexity of the files received from FINTRAC, the lengthy amount of time required to complete these cases, and the fact that the number of referrals continues to increase, the number of audits that the SEP can complete in 2012–13 may be impacted. These factors will also potentially impact the federal tax recovery for these cases.

Information will be gathered from the FINTRAC disclosures and resulting compliance actions for intelligence purposes in an effort to identify trends that could positively impact the quality and success of future compliance actions.
In 2012–13, the CRA participated in all AML/ATF Regime committee meetings as well as in multiple conferences with external law enforcement and financial institution stakeholders, such as the Canadian Anti-Money Laundering Institute, the Association of Certified Fraud Examiners, and the Canadian Bankers Association. The Criminal Investigations Directorate (CID) continued to enhance its operational relationships with FINTRAC through meetings with FINTRAC that focused on operational functions and improving the quality of information shared between the two organizations.

During the year, the CID  placed a greater emphasis on conducting analysis of FINTRAC disclosures in an effort to identify trends related to tax avoidance and evasion, with an emphasis on international non-compliance.

The CRA received 134 FINTRAC disclosures between April 1, 2012, and March 31, 2013. The majority of these disclosures were worked on by the SEP, which conducts audits and other enforcement activities related to subjects suspected of earning income from illegal activities.

The SEP completed 171 audits based on information contained in FINTRAC disclosures, with total federal income taxes reassessed in the amount of $24,342,703 and total Goods and Services Tax / Harmonized Sales Tax reassessed in the amount of $849,401.

In addition, provincial income taxes were assessed, and interest and penalties may be assessed.

During 2012–13, five cases were referred for consideration for criminal prosecution for tax evasion.

As a result of a program review within the CRA, compliance actions that were formerly under the responsibility of the SEP will be completed by the Small and Medium Enterprises Directorate (SMED), beginning April 2013. FINTRAC disclosures will continue to be initially reviewed by the CID for potential tax evasion or fraudulent activity. Files that do not meet the CID's criteria will be forwarded to the SMED for civil compliance actions.
  Charities – Public Safety and Anti-Terrorism Combatting Terrorist Resourcing Through Charities $20.5 $4.4 $4.0 Under the Income Tax Act, the CRA has responsibility for administering the registration system for charities. This recognizes that the existence of a strong regulatory deterrence against terrorist abuse of charities contributes to suppressing the financing of terrorism in Canada and to protecting and preserving the social cohesion and well-being of Canadians. The CRA's regulatory oversight of charities has been strengthened by the enactment of complementary measures under the Charities Registration (Security Information) Act and the PCMLTFAand by changes to the Income Tax Act that authorize broader information sharing between AML/ATF Regime partners. Under these authorities, intelligence provided to the CRA assists in its mandate to protect the integrity of the registration system for charities, and information disclosed by the CRA can be used for investigative purposes. In 2012–13, the CRA will continue to consolidate its capacity to identify and respond to cases involving possible links to terrorism by deploying new decision support systems, refining risk management tools, developing a privacy management framework, and bringing regulatory actions to the attention of Canadians. With respect to its anti-terrorist financing responsibilities, the CRA's Charities Directorate:

Continued to undertake its core activities of reviewing applications for charitable registration, monitoring registered charities, carrying out regulatory activities, and exchanging information under legal authorities with Canada's AML/ATF Regime partners;

Specifically, the Directorate:

Reviewed 2,822 applications for charitable registration;

Performed examination-related functions that resulted in the denial of five, the abandonment of six, and the withdrawal of six, applications for charitable registration;

Took compliance action against four registered charities; and

Received 4 disclosures from, and made 38 disclosures to, Canada's AML/ATF Regime partners.

Continued to support the AML/ATF Regime's efforts with respect to the contribution of international best practices and the provision of technical assistance by attending and providing subject-matter expertise at international conferences and capacity-building workshops, such as the UN-led project on Preventing the Abuse of Non-Profit Organizations for the Purposes of Terrorist Financing; and by participating in the revision of the FATF Standards and their supporting documents related to Recommendation 8 – Non-Profit Organizations.
Canada Border Services Agency Risk Assessment Anti-Money Laundering and Anti-Terrorist Financing Regime $89.8 $1.5 $1.4 In 2012–13, the CBSA will:

Continue to be involved in tactical and strategic analysis and assessments of intelligence related to ML/TF activities.
In 2012–13, the CBSA performed 1,109 seizures under the PCMLTFA, totaling $28 million. Of this total, $9.0 million was forfeited to the Crown and penalties were assessed in the amount of $498,250.

Eighty-two seizures resulted in forfeiture as suspected proceeds of crime or funds for the use of terrorist activities.
            Participate in the exchange of currency seizure information to assist in the investigation or prosecution of ML/TF activity offences with the U.S. Immigration and Customs Enforcement and the U.S. Customs and Border Protection.  
            Participate in joint forces operations with the RCMP and other government departments. Several specific operations exemplify the high level of cooperation between AML/ATF Regime partners and related international agencies.  
  Admissibility Determination     $4.6 $4.1 Border services officers (BSOs) maintain the responsibility to enforce the physical cross-border reporting obligation, including the examination of baggage and conveyances, and to question and search individuals for unreported or falsely reported currency and monetary instruments.  
            BSOs continue to seize currency and monetary instruments if they are not reported and are greater than the reporting threshold. Seized non-reported currency and monetary instruments are forfeited with no terms of release when BSOs suspect that the seized currency or monetary instruments are proceeds of crime or funds for use in terrorist financing activities. In all other instances, the seized amount will be returned upon payment of a penalty. BSOs are trained to recognize various monetary instruments and potential instances of non-compliance.  
            Dedicated Cross-Border Currency Reporting Teams will continue to be an integral part of the CSBA's outbound enforcement effort.  
            The Currency Detector Dogs Service will continue to play an important role in the detection of unreported currency that may be related to ML/TF.  
  Internal Services     $1.6 $1.6 Internal Services will:

Provide the regions with functional direction regarding the administration and enforcement of Part 2 of the PCMLTFA.
 
            Provide critical strategic planning, priority setting and coordination for the Cross-Border Currency Reporting Program.  
            Continue to work closely with other key government departments on matters related to ML/TF.  
            Continue to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise.  
Total     $698.1†   $76.8 $75.1  
† Certain organizations that are partners in Canada's AML/ATF Regime are exempt from reporting; therefore the amounts presented in the table may not add up to the total amount allocated.

Comments on variances (if applicable): As noted in Chapter 5 of the June 2011 Status Report of the Auditor General of Canada, the RCMP has had to reallocate funding internally from all programs in order to meet the increased demands for National Policing Services. Furthermore, various federal and protective policing priorities have created additional requirements to reallocate funding and resources.

Results achieved by non-federal partners (if applicable): Not applicable

Contact information:

Rachel Grasham
Chief, Financial Crimes Section
Phone: 613-943-2883

Internal Audits and Evaluations

Internal Audits (current reporting period)
Name of internal audit Internal audit type Status Completion date
Audit of the Access to Information Process Internal Control Completed May 2012
Audit of Contracting Internal Control Completed August 2012
Audit of the Business Continuity Plan Internal Control Completed August 2012
Audit of the Control Framework for the Crown Borrowing Process Internal Control Completed December 2012
Audit of the Control Framework for the Transfer Payments Process Internal Control Completed December 2012
Audit of Payments in Lieu of Severance Pay Internal Control Completed March 2013
Evaluations (current reporting period)
Name of evaluation Program Status Completion date
Evaluation of the International Trade and Finance Branch Economic and Fiscal Policy Framework Completed December 2012
Evaluation of the Consultations and Communications Branch Internal Services Completed March 2013
Evaluation of the Tax Policy Branch Economic and Fiscal Policy Framework Completed March 2013
Evaluation of the Crown Borrowing Program Treasury and Financial Affairs Completed May 2013

Response to Parliamentary Committees and External Audits

Response to parliamentary committees

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

Response to Chapter 3—Interest-Bearing Debt, of the 2012 Spring Report of the Auditor General of Canada. A detailed response follows each recommendation.

Response to Chapter 7—Long-Term Fiscal Sustainability, of the 2012 Fall Report of the Auditor General of Canada. A detailed response follows each recommendation.

External audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

Not applicable

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
      2012–13 ($ millions)
     
Program 2010–11 Actual
($ millions)
2011–12 Actual
($ millions)
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Internal Services            
Provision of internal services to other organizations 0.0 0.2 0.4 0.4 0.4 0.1
Total Respendable Revenue 0.0 0.2 0.4 0.4 0.4 0.1
Non-Respendable Revenue
      2012–13 ($ millions)
     
Program 2010–11 Actual ($ millions) 2011–12 Actual ($ millions) Planned
Revenue
Actual
Economic and Fiscal Policy Framework        
Loans, Investments, and Advances        
Federal-provincial fiscal arrangements 0.1 0.1 0.1 0.1
Other Miscellaneous Revenues        
Sundries 0.0 0.3 0.0 0.0
 
Subtotal 0.1 0.4 0.1 0.1
Transfer and Taxation Payment Programs        
Loans, Investments, and Advances        
International Monetary Fund—Poverty Reduction and Growth Facility 1.0 1.0 0.8 0.5
International Finance Corporation—Global Trade Liquidity Program 1.9 3.5 0.0 0.1
Financial Consumer Agency of Canada 0.1 0.1 0.0 0.0
Other Miscellaneous Revenues        
Sale of real property to Canada Lands Company Limited 2.4 4.8 4.8 0.0
Guarantee fees 121.9 10.4 10.6 16.6
 
Subtotal 127.3 19.8 16.2 17.2
Treasury and Financial Affairs        
Cash and Accounts Receivable  
Chartered banks 14.3 23.4 21.2 23.8
Short-term deposits1 40.4 66.7 64.0 90.4
Receiver General Balance at the Bank of Canada1 30.5 25.6 90.7 108.4
Foreign Exchange Accounts        
International reserves held in the Exchange Fund Account—transfer of profit2 1,718.1 1,672.2 1,184.5 1,400.6
International Monetary Fund—subscriptions— transfer of profit 5.9 7.1 7.2 2.1
International Monetary Fund—General Resources Account—transfer of profits 2.4 3.9 3.9 1.3
Loans, Investments, and Advances        
Interest Revenue—Canada Mortgage and Housing Corporation Loan 1,951.7 1,962.8 1,910.6 1,889.4
Interest Revenue—Farm Credit Canada Loan 158.0 196.5 219.7 221.8
Interest Revenue—Business Development Bank of Canada Loan 97.9 111.2 111.0 119.5
Other Miscellaneous Revenues        
Domestic coinage 131.0 106.7 115.4 120.2
Transfer from the following accounts, which were unclaimed or outstanding for ten years or more—outstanding interest account—unclaimed cheques 62.0 40.9 38.3 39.8
Unclaimed balances received from Bank of Canada in respect of chartered banks 0.3 0.4 0.5 0.3
Transfer from matured debt outstanding3 0.3 0.8 2.4 13.9
Other Accounts        
Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund 0.1 0.1 0.1 0.0
 
Subtotal 4,212.9 4,218.3 3,769.5 4,031.5
Internal Services        
Other Miscellaneous Revenues        
Refunds of previous years' expenditures 0.2 0.2 0.0 0.1
Adjustments to prior years' payables 0.4 0.0 0.0 0.2
Sales of goods and services—rights and privileges 0.1 0.1 0.1 0.1
 
Subtotal 0.7 0.3 0.1 0.4
 
Total Non-Respendable Revenue 4,341.0 4,238.8 3,785.9 4,049.2
1 The increase relates to higher balances due to increased auctions issued.
2 The decrease relates to lower interest income and gains resulting from sales.
3 The increase relates to matured Canada Saving Bonds.

[1] The payment identified as “Canadian Securities Regulation Regime Transition Office (Canadian Securities Regulation Regime Transition Office Act)” is recorded as an operating expenditure in the Public Accounts rather than as a transfer payment.

[2] This amount differs from the funding reported in the Department of Finance Canada's 2012-13 Report on Plans and Priorities because it does not include Public Works and Government Services Canada accommodations.

[3] This amount differs from funding reported in the 2012–13 RPP because it does not include Public Works and Government Services Canada accommodations.