Canada Revenue Agency – Unaudited Supplementary Financial Information

Financial Performance Information – Parliamentary Appropriations

Introduction

This section of the Annual Report to Parliament 2009-2010 provides the details of the Agency’s resource management performance for the purpose of reporting to Parliament on the use of appropriations in 2009-2010. This complements the information provided in the spending profile sections under each Program Activity and satisfies the reporting requirements set for departmental performance reports.

Financial reporting methodologies

The CRA’s funding is provided by Parliament through annual appropriations (modified cash accounting basis) and, in this section, the CRA reports its expenditures and performance to Parliament, together with details on the management of Parliamentary appropriations on the same basis. In addition to the above reporting requirements, the CRA is also required to prepare its annual financial statements in accordance with the accounting principles applied in preparing the financial statements of the Government of Canada (full accrual accounting basis). Accordingly, the audited Statement of Operations - Agency Activities on includes certain items such as services received without charge from other government departments and federal agencies. A reconciliation can be found in Note 3 b on .

CRA financial information

Activities of the Agency

The Financial Statements - Agency Activities reports $3,985.2 million as total Parliamentary appropriations used (Note 3 b shows the reconciliation to the net cost of operations). The difference from the $4,406.5 million reported in this section is explained by three items reported in the Financial Statements - Administered Activities: the statutory disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006, $205.5 million; the Children's Special Allowance, $215.3 million; and the Relief for Heating Expenses, $0.5 million (part of Vote 1, Program Expenditures).

Overview

For 2009-2010, Parliament approved $4,388 million through the Main Estimates, as shown in CRA’s 2009-2010 Report on Plans and Priorities.

The 2009-2010 Main Estimates were adjusted to include:

• $147.1 million for the carryforward from 2008-2009;
• $70.9 million for maternity and severance payments;
• $9.1 million for increased Respendable Revenue mainly to provide services to Service Canada;
• $56.6 million for Collective Agreements;
• $12.3 million for measures arising from the 2009 Federal Budget in support of Canada’s Economic Action Plan;
• $18.6 million transferred from Public Works and Government Services Canada for accommodation services;
• $11.0 million for the Government advertising programs;
• $1.6 million for Court Awards and Crown Assets Disposal;
• $0.9 million to increase Federal Public Service Student Employment;
• $6.3 million for the Financial Interoperability and Stewardship Initiative in support of the Corporate Administrative System
• $40.0 million for the Provincial Sales Tax Administration Reform; and
• $56.0 million for the employee benefits plan costs.

These increases were offset by the following reductions:

• $223.5 million for the statutory disbursements to Provinces under the S oftwood Lumber Products Export Charge Act, 2006;
• $2.0 million for private collection agencies;
• $5.7 million for statutory Children’s Special Allowance payments;
• $0.6 million for the Public Opinion Research;
• $0.2 million transferred to the Treasury Board Secretariat to support the National Managers’ Community; and
• $0.2 million transferred to Foreign Affairs and International Trade to support the CRA staff located at missions abroad.

This resulted in total approved authorities of $4,586.2 million for 2009-2010, representing an in-year increase of 4.5% over the Main Estimates.

Of the $4,586.2 million total authority, CRA’s actual spending totalled $4,406.5 million resulting in $179.6 million remaining unexpended at year-end. After deducting unused resources related to the proposed Offshore Trusts initiative, Accommodation and Real Property Services as well as costs for the Employee Benefits Plan associated with the conversion of Other Operating to Personnel costs, the remaining $150.3 million is available for use by the Agency in 2010-2011. This amount represents 3.3% of the total authority.

The $150.3 million carry forward to 2010-2011 will be directed primarily to selected priority investments related to:

• Major project and infrastructure spending (e.g., Compliance Systems Redesign, Tax Free Savings Account, Major Tenant Services and Information Technology Infrastructure);
• Special purpose funding (e.g., Provincial Sales Tax Administration Reform, Charities Partnership and Outreach Program, Ministère du revenu du Québec for the Administration of the GST);
• Various other operational and workload pressures.

Revenues administered by the Agency

Total revenues administered by the CRA amount to some $279 billion in 2009-2010, a decrease of 3% from the $287.5 billion administered in 2008-2009.

Financial Performance Tables

Introduction

The following tables provide financial information about the performance of the Agency during the 2009-2010 fiscal year. The tables compare Main Estimates and Planned Spending, as shown in the 2009-2010 Report on Plans and Priorities, with total authorities at year-end and actual expenditures for the fiscal year.

The information is presented at the Agency level, the Program Activity level, as well as by authority and type of revenue and expense.

Performance Summary

The following table details the authorities approved for the Agency after the Main Estimates and reconciles with the Total Authorities shown on .

Date modified:

2010-11-02