In the previous section, we highlighted the CCRA's overall performance in year two of our first five years as an agency for our two strategic outcomes: Compliance—that Canadians comply with tax, trade, and border legislation; and Innovation—that the CCRA is a leading-edge service organization.

This section provides a more in-depth discussion of the results we have achieved in each of the five lines business to support our two strategic outcomes. These five business lines were established to provide a client focus to all activities:

The CCRA's funding is provided by Parliament through annual appropriations. Each year, our mandate and level of service for core operations remain relatively unchanged; however, we receive additional in-year funding to deal with specific priorities. For example, the planned spending amount of $2.8 billion shown in Exhibit 11 represents the original funding approved by Parliament for 2001-2002. As a result of the events of September 11, the public expected heightened security, and we received additional funding ($62.8 million) to hire more customs officers and buy the technology they need to ensure the safety of Canadians. We also received funding for the legislative measures announced in the February 2000 Federal Budget and October 2000 Economic Statement and Budget Update ($60.6 million); GST/HST Credit Responsiveness ($14.5 million); and Resource and Management Review ($225.3 million). These and other in-year approvals (details on page 2-47 of the CCRA Financial Statements) increased our total authority for spending to $3.6 billion in 2001-2002, of which we spent $3.4 billion for our regular business line operations.

Of the $3.4 billion spent in 2001-2002 (9.6% higher than last year's spending of $3.1 billion), 54% was directed to the Tax Services business line, followed by Corporate Management and Direction at 21% (with almost 9% spent on information technology), Customs Services at 16%, Benefit Programs at 6% (4.5% for statutory programs and 1.5% for functional programs), and Appeals at 2%. Actual spending statistics ( Exhibit 11 ) reveal that virtually all of the CCRA's budget was spent. Overall, 83.5% was spent on personnel costs and 12.1% on information technology.

Details of our performance against overall authorized spending for the CCRA as approved by Parliament are provided in Table 2 on page 51 of the CCRA Financial Statements.

The CCRA Financial Statements contain additional information, particularly the CCRA's audited financial statements prepared in accordance with accounting principles of the Government of Canada, both for agency-specific operations and for the activities we administer on behalf of federal, provincial, and territorial governments. The statistics in Exhibit 11 , supported by the Unaudited Supplementary Financial Information in the CCRA Financial Statements, are similar but not identical to the audited statements. To measure our performance against budgeted spending, we use authorized spending as approved by Parliament through the appropriations as our relevant benchmark. In accounting for our use of appropriations, we follow a modified cash basis that is different from that used for the audited financial statements. The modified cash basis recognizes expenditures incurred during the year. However, it does not include, for example, certain accrual accounting adjustments to reflect all the liabilities or services provided by other government departments that are included in the audited financial statements. A reconciliation of expenditures reported under these two financial reporting methodologies is shown on Table 9 on page 62 of the CCRA Financial Statements.

The following sections, entitled “Main Points”, provide summaries of our performance in each business line with respect to our two main performance themes: managing the compliance continuum and innovating for the future. The CCRA's approach to rating its performance against expected outcomes by business line uses both qualitative and quantitative indicators. Where we can, we use survey results, statistical sampling, and relevant business volumetrics. In some cases, we rely on estimates to get a rough, but useful, sense of a trend. Over time, these estimates provide an indication of how well the CCRA is performing in promoting compliance, within certain parameters. In other instances, robust performance indicators are not yet in place or the supporting data are inherently too imprecise to draw firm conclusions, but represent the best available information at this time. Accordingly, we have developed a performance improvement plan to address these deficiencies.

Tax Services:

More details on our performance by business line are available on-line at www.ccra.gc.ca/annualreport .