Audited Financial Statements - Agency Activities

Management Discussion and Analysis in Support of Audited Financial Statements [Unaudited]

Analysis of Net Cost of Operations (Based on Financial Statements)

The CCRA's 2004-2005 net cost of operations decreased by $654M or 17% from 2003-2004. Agency expenses totalled $3,545 million in 2005 and $4,142 million in 2004 (see Note 6 of the Financial Statements - Agency Activities for the breakdown of Personnel and Other Expenses). When adjusting for the receipt of Non-Tax Revenue of $270 million in 2005 and $214 million in 2004, the Net Cost of Operations becomes:

The Agency's expenses, as detailed in the Statement of Operations, are made up of approximately 75% in personnel expenses (salaries, other allowances and benefits) and 25% in other expenses, as illustrated in Figure 39. Much of the other expenses are linked to personnel expenses (e.g., travel for auditors, computers, accommodation, furniture replacement, etc.) and therefore personnel expenses are the primary drivers for the Agency. A number of factors had a significant impact on personnel expenses in 2004-2005. These include the transfer of approximately 11,000 employees to the Canada Border Services Agency (CBSA), as well as the impact of a new collective agreement with the Public Service Alliance of Canada and a provision for an agreement with the Professional Institute of the Public Service of Canada.

Other expenses decreased by 13% or $135 million. Much of this decrease can be attributed to the transfer of $131 million to CBSA.

Figure 39 Total Expenses

Date modified:

2005-10-26