Canada Revenue Agency - Unaudited Supplementary Financial Information

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Financial Performance Information – Parliamentary Appropriations

Introduction

This section of the Canada Revenue Agency (CRA) Annual Report to Parliament 2011-2012 provides the details of the CRA's resource management performance for the purpose of reporting to Parliament on the use of appropriations in 2011-2012. This complements the information provided in the spending profile sections under each chapter 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 Statement of Operations and Agency Net Financial Position - Agency Activities includes certain items such as services provided without charge from other agencies and departments. A reconciliation can be found in note 3.

CRA financial information

Activities of the Canada Revenue Agency

The Financial Statements - Agency Activities reports $3,913.6 million as total Parliamentary appropriations used (note 3 shows the reconciliation to the net cost of operations). The difference from the $4,351.3 million reported in this section is explained by the following three items reported in the Financial Statements - Administered Activities: the statutory disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006, $213.9 million; the Children's Special Allowance payments, $223.5 million; and other miscellaneous items, $0.3 million.

Overview

For 2011-2012, Parliament approved $4,293.0 million through the Main Estimates, as shown in the CRA's 2011-2012 Report on Plans and Priorities.

The 2011-2012 Main Estimates were adjusted to include:

• $178.0 million for the carryforward from 2010-2011;
• $101.4 million for maternity and severance payments;
• $73.9 million for increased disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006;
• $19.1 million for the implementation of various tax measures announced in the 2011 Federal Budget;
• $14.8 million for increased Respendable Revenue mainly to provide services to the Canada Border Services Agency;
• $6.2 million to begin the upgrade of the personal income tax processing system;
• $1.5 million for Court Awards and Crown Assets Disposal;
• $1.0 million for increased Government advertising campaigns; and
• $0.3 million due to other miscellaneous items.

These increases were offset by the following reductions:

• $72.3 million for the transfer to Shared Services Canada of e-mail, data centre and network responsibilities;
• $3.5 million for decreased statutory Children's Special Allowance payments;
• $3.2 million for decreased employee benefits plan costs; and
• $0.1 million transferred to the Treasury Board Secretariat to support the National Managers' Community.

This resulted in total approved authorities of $4,610.1 million for 2011-2012, representing an in-year increase of 7.4% over the Main Estimates.

Of the $4,610.1 million total authority, CRA's actual spending totalled $4,351.3 million resulting in $258.8 million remaining unexpended at year-end. After deducting unused resources related to Government advertising campaigns and a frozen allotment for the Foreign Investment Entities and Non-Resident Trusts legislative initiative which has not yet received Royal Assent, the remaining $248.3 million is available for use by the CRA in 2012-2013 under its statutory two-year spending authority. This amount represents 5.4% of the total authority.

The CRA's two-year spending authority enables the CRA to be more strategic in its use of public funds by taking a multi-year view of plans and budgets. The financial flexibility in 2011-2012 was somewhat higher than usual due to restraint measures introduced by the CRA during the latter half of the fiscal year in response to the Operating Budget freeze implemented by the Government in Budget 2010. This increased carryforward was part of the CRA's strategy to address unfunded operating pressures in 2012-2013, including previously approved salary increases for employees.

Revenues administered by the Canada Revenue Agency

Total revenues administered by the CRA amount to some $332.0 billion in 2011-2012, an increase of 6.6% from the $311.3 billion administered in 2010-2011.

Financial Performance Tables

Introduction

The following tables provide financial information about the performance of the Canada Revenue Agency (CRA) during the 2011-2012 fiscal year. The tables compare Main Estimates and Planned Spending, as shown in the 2011-2012 Report on Plans and Priorities, with total authorities at year-end and actual expenditures for the fiscal year.

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

The following tables can be found on the CRA web site

Financial Tables Index

Performance Summary

Performance Summary

Voted and Statutory Items

Authorities approved after Main Estimates

The following table details the additional authorities approved for the Canada Revenue Agency after the tabling in Parliament of Main Estimates and reconciles with the Total Authorities.

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Date modified:

2012-11-29