Spending Profile

The CCRA's funding is provided by Parliament through annual appropriations on a modified cash accounting basis. We have therefore reported the expenditures in this section and in the business lines on the same basis as the appropriations.

For 2002-2003, Parliament had originally approved planned spending in the amount of $3,363.8 million through the Main Estimates, as shown in our 2002-2003 to 2004-2005 Corporate Business Plan. An additional $602.1 million, including $168.9 million of carry-forward of unused non-operational funds (such as deferrals of Investment Plan projects or items relating to the Asset Management Plan), was approved during the 2002-2003 fiscal year for previously unfunded or new initiatives. The largest single increase was $181.3 million for new collective agreements, followed by $82.9 million for initiatives announced in the federal budgets.

Resource management during 2002-2003 was particularly challenging, because of the workload generated from the enhanced border security measures. We managed the $10 million operational funding shortfall for customs and $7.2 million for tax services through general efficiency gains and other adjustments to programs. In addition, the CCRA reallocated some $83.6 million to the Investment Plan in 2002-2003, either from amounts carried forward from 2001-2002, or from general reallocations. The Investment Plan, which is directed at both of our strategic outcomes, supports activities such as replacing aging technology and business systems; enhancing human resources and administrative systems; enhancing partnerships with federal, provincial, and territorial government agencies; and promoting innovative service options such as Government On-Line.

Exhibit 2: Overall CCRA Spending and Business Line Spending¹

1 Planned spending, authorities, and actual spending are all net of re-spendable revenues (Revenues Credited to the Vote) and Relief for Heating Expenses.

Total spending, including $12 million for the Relief of Heating Expenses program, totalled some $3,824.9 million leaving $141.1 million unexpended at year-end that is available for use by the CCRA in 2003-2004. Key items contributing to the lapse included $38 million for planned deferral of equipment purchases for the Public Security and Anti-Terrorism initiative and another $70 million in the Investment and Asset Management Plans.

Of the $3.8 billion spent in 2002-2003, we spent $3,686.4 million on our primary strategic outcome of Compliance and $138.5 million on our secondary strategic outcome of Innovation. The percentage spending by business line was similar to that of last year: 54.4% by Tax Services, 20.4% by Corporate Management and Direction, 17.3% to Customs Services, 5.4% to Benefit Programs and Other Services, and 2.5% by Appeals.

Over a three-year period, the CCRA's expenditures increased by over $700 million. The Tax Services business line expenditures increased by $323M (Exhibit 2) primarily as a result of increased spending to address program integrity shortfalls and to increase the capacity to conduct compliance and collections activities. The Customs Services business line has grown over a three-year period by some $165 million mainly due to Public Security and Anti-Terrorism funding, increased border security, NEXUS, and CANPASS. As the Corporate Management and Direction business line provides support to the other four business lines, it has grown accordingly by some $150 million over the same three years. In addition, as the CCRA's expenditures are composed of approximately 80% in salaries, all business lines have been affected by collective agreement settlements.

The CCRA Financial Statements contain additional information, including the CCRA's audited financial statements, prepared in accordance with the accounting principles of the Government of Canada, for agency-specific operations and for the activities we administer on behalf of federal, provincial, and territorial governments. The accrual accounting basis has adjustments including services provided by other government departments which are not part of the modified cash basis of accounting used for reporting on our Parliamentary appropriations. A reconciliation of expenditures reported under these two financial reporting methods is shown in the CCRA Financial Statements.

Date modified:

2003-10-29