2015-16 Departmental Performance Report

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Section 2 Organizational Overview

Actual Expenditures

Budgetary Financial Resources (dollars)^{Footnote 1}

	2015-16 Main Estimates	2015-16 Planned Spending	2015-16 Total AuthoritiesFootnote 2	2015-16 Actual SpendingFootnote 3	2015-16 Difference (planned minus actual)
Canada Revenue Agency	3,801,645,731	3,801,645,731	4,427,826,131	4,144,940,135	(343,294,404)
Taxpayers' Ombudsman	3,198,657	3,198,657	3,088,064	2,047,159	1,151,498
Total	3,804,844,388	3,804,844,388	4,430,914,195	4,146,987,294	(342,142,906)

Human Resources (FTEs)^{Footnote 4}

	2015-16 Planned	2015-16 Actual	2015-16 Difference (planned minus actual)
Canada Revenue Agency	38,385	37,956	429
Taxpayers' Ombudsman	31	21	10
Total	38,416	37,977	439

Budgetary Performance Summary

Budgetary Performance Summary for Program and Internal Services (dollars)

Program	2013-14 Actual Spending	2014-15 Actual Spending	2015-16 Main Estimates	2015-16 Total Authorities	2015-16 Planned SpendingFootnote 5	2015-16 Actual Spending	2016-17 Planned Spending	2017-18 Planned Spending
Taxpayer and Business AssistanceFootnote 6	350,801,699	292,809,925	280,181,661	428,549,814	280,181,661	418,438,658	412,286,804	280,544,765
Assessment of Returns and Payment ProcessingFootnote 7	649,108,155	640,377,518	614,590,330	643,991,825	614,590,330	606,377,627	503,182,149	496,115,166
Benefit ProgramsFootnote 8	374,414,324	351,409,527	375,217,640	469,297,374	375,217,640	449,400,252	434,832,503	441,578,904
Reporting Compliance	1,084,562,230	1,108,667,741	1,045,193,249	1,118,409,053	1,045,193,249	1,076,656,765	1,067,140,214	1,062,160,684
Collections and Returns Compliance	496,787,602	519,837,234	469,453,195	534,428,935	469,453,195	495,342,255	632,051,666	618,542,264
Appeals	190,219,456	204,406,362	179,658,662	187,677,521	179,658,662	181,214,477	185,568,739	185,234,324
Taxpayers' Ombudsman	2,524,101	2,614,097	3,198,657	3,088,064	3,198,657	2,047,159	3,235,854	3,227,940
Internal Services	914,441,789	940,711,586	837,350,994	1,045,471,609	837,350,994	917,510,101	847,420,254	843,948,992
Total all programs	4,062,859,356	4,060,833,990	3,804,844,388	4,430,914,195	3,804,844,388	4,146,987,294	4,085,718,183	3,931,353,039
Less: Respendable Non-Tax Revenue under Section 60 of the Canada Revenue Agency Act	(164,015,731)	(166,085,289)	(169,466,255)	(169,032,577)	(169,466,255)	(169,032,577)	(166,604,106)	(161,082,878)
Plus: Cost of services received without charge	430,409,136	457,024,404	N/A	N/A	436,284,460	463,246,580	452,470,955	452,350,893
Net Cost	4,329,252,761	4,351,773,105	N/A	N/A	4,071,662,593	4,441,201,297	4,371,585,032	4,222,621,054

CRA spending trend (dollars)

CRA Spending Trend (dollars)^{Footnote 9}

	2013-14 ActualFootnote 10	2014-15 ActualFootnote 10	2015-16 ActualFootnote 10	2016-17 Planned	2017-18 Planned	2018-19 Planned
Statutory	902,057,364	817,112,935	1,034,149,642	1,016,533,269	887,439,425	889,761,756
Voted	3,160,801,992	3,243,721,055	3,112,837,652	3,069,184,914	3,043,913,614	3,032,104,066
Total	4,062,859,356	4,060,833,990	4,146,987,294	4,085,718,183	3,931,353,039	3,921,865,822

Over the period 2013-2014 to 2018-2019, the CRA's appropriations show a decline. Funding received to implement and administer various measures announced in the federal budgets, for the upgrade of the individual income tax processing system, for various wage settlements, as well as for increases in the CRA's Statutory Authorities for children's special allowance payments was more than offset by decreases due to the following:

• the implementation of initiatives to improve efficiency;
• Statutory Authorities for disbursements to the provinces under the Softwood Lumber Products Export Charge Act, 2006 and the rates of the contributions to employee benefit plans;
• funding for the implementation of the Harmonized Sales Tax, the Affordable Living Tax Credit for Nova Scotia, and the administration of the Softwood Lumber Agreement;
• other miscellaneous items such as Government advertising programs, adjustment to funding previously transferred to Shared Services Canada, and the transfer of CRA training programs to the Canada School of Public Service.

The following table details the additional authorities approved for the CRA after the Main Estimates were tabled in Parliament and reconciles with the total authorities shown on page 22.

Authorities approved after Main Estimates (dollars)

2015-16 Main Estimates	3,804,844,388
Planned Spending (as reported in the 2015-16 Report on Plans and Priorities)	3,804,844,388
Carry-forward from 2014-2015	261,445,115
Severance payments, parental benefits, and vacation credits	81,889,528
Funding for implementing and administering various tax measures announced in the 2015 federal budget	63,938,565
Transfer from Public Services and Procurement Canada as a result of a reduction in accommodation requirements	19,616,890
Transfer to Innovation, Science and Economic Development Canada for the Get it in Writing Campaign for Canadian Home Builders' Association	(250,040)
Year-end adjustments to statutory authorities:
increase in disbursements to provinces under the Softwood Lumber Products Export Charge Act, 2006	121,481,095
increase in payments under the Children's Special Allowance Act for eligible children in the care of agencies and foster parents	72,173,282
contribution to employee benefit plans	4,622,124
court awards	1,487,951
Crown assets disposals	91,666
decrease in the spending of revenues received through the conduct of its operations	(433,678)
other minor adjustments	7,309
Total authorities at year-end	4,430,914,195

Expenditures by vote

For information on the CRA's organizational voted and statutory expenditures, see the Public Accounts of Canada 2016^v.

Alignment of spending with the Whole–of–Government Framework

Alignment of 2015-16 Actual Spending With the Whole-of-Government Framework^vi

Program	Spending Area	Government of Canada Outcome	2015-16 Actual Spending (dollars)
Taxpayer and Business Assistance	Government affairs	A transparent, accountable, and responsive federal government	418,438,658
Assessment of Returns and Payment Processing	Government affairs	Well-managed and efficient government operations	606,377,627
Benefit Programs	Economic affairs	Income security and employment for Canadians	449,400,252
Reporting Compliance	Government affairs	Well-managed and efficient government operations	1,076,656,765
Collections and Returns Compliance	Government affairs	Well-managed and efficient government operations	495,342,255
Appeals	Government affairs	A transparent, accountable, and responsive federal government	181,214,477
Taxpayers' Ombudsman	Government affairs	A transparent, accountable, and responsive federal government	2,047,159

Total Spending by Spending Area (dollars)

Spending Area	Total Planned Spending	Total Actual Spending
Economic affairs	375,217,640	449,400,252
Social affairs	0	0
International affairs	0	0
Government affairs	2,592,275,754	2,780,076,941

Financial Statements and Financial Statements Highlights

Financial Statements

For more information on the Financial Statements and Statement of Management Responsibility Including Internal Control Over Financial Reporting, see pages 100 to 167.

Financial Statements Highlights

Condensed Statement of Operations (unaudited)

For the Year Ended March 31, 2016 (dollars)

Financial Information	2015-16 Planned Results	2015-16 Actual	2014-15 Actual	Difference (2015-16 actual minus 2015-16 planned)	Difference (2015-16 actual minus 2014-15 actual)
Total expenses	4,472,524,000	4,539,293,649	4,607,492,897	66,769,649	(68,199,248)
Total non-tax revenues	488,957,000	489,925,033	480,619,960	968,033	9,305,073
Net cost of operations before government funding and transfers	3,983,567,000	4,049,368,616	4,126,872,937	65,801,616	(77,504,321)

The CRA's 2015-2016 net cost of operations before government funding and transfers amounted to $4,049.4 million, a decrease of $77.5 million from the $4,126.9 million net cost of operations before government funding and transfers in 2014-2015.

Personnel expenses (salaries, other allowances and benefits) represent 74% of total expenses and are the CRA's primary costs. The remaining 26% of expenses are comprised of other costs such as accommodation and information technology related expenses.

Personnel costs have remained fairly stable in 2015-2016, decreasing by 1%. The decrease in employee severance benefit expenses was the main contributor to the overall decrease in personnel costs.

Non-personnel expenses have decreased by $25.9 million or 2% in 2015-2016. This variance mainly results from a reduction in occupied office space following the implementation of the Government-wide strategy to support the Clerk of the Privy Council's commitment to workplace renewal.

Non-tax revenues slightly increased in 2015-2016 mostly as a result of increased workloads for the administration of the Canada Pension Plan and the Employment Insurance Act.

Condensed Statement of Financial Position (unaudited)

As at March 31, 2016 (dollars)

Financial Information	2015-16	2014-15	Difference (2015-16 minus 2014-15)
Total net liabilities	1,463,915,583	1,429,577,039	34,338,544
Total net financial assets	276,524,222	292,255,010	(15,730,788)
CRA net debt	1,187,391,561	1,137,322,029	50,069,532
Total non-financial assets	414,775,828	405,953,313	8,822,515
CRA net financial position	772,615,733	731,368,716	41,247,017

Liabilities have increased by $34.4M mainly as a result of increased salary accruals in 2015-2016. This was offset in part by a decrease in the accounts payable considering the amount payable to Treasury Board Secretariat (TBS) in 2014-2015 for the CRA's employee benefit plan.

Non-financial assets are comprised of 97% tangible capital assets. The CRA managed a capital budget of $128.7 million for the year 2015-2016 ($123.4 million for 2014-2015), of which a total of $49.9 million ($47.1 million for 2014-2015) remains available for use in future years in accordance with the CRA's multi-year resource management strategy.

Tablenotes

Tablenotes:

Footnote 1

Budgetary financial information displayed in this document represents authorities approved by Parliament, and excludes amounts cost recovered by the CRA for the provision of services to Employment and Social Development Canada for the administration of the Canada Pension Plan and the Employment Insurance Act.

Return to footnote 1 referrer

Footnote 2

The CRA's total authorities increased by $626.1 million, or 16.5% over the planned spending identified in the Report on Plans and Priorities. This is mainly due to increases for the carry-forward of funds from 2014-2015, severance payments, parental benefits, vacation credits, funding for implementing and administering various tax measures announced in the 2015 federal budget, children's special allowance payments, and the statutory authority for the disbursement of softwood lumber export charges to the provinces. For more information, see table "Authorities approved after Main Estimates" on page 26.

Return to footnote 2 referrer

Footnote 3

Modified cash basis, based on Parliamentary appropriations used. See pages 111 and 112 of the Departmental Performance Report for an explanation of how actual spending relates to results in the CRA Financial Statements – Agency Activities.

Return to footnote 3 referrer

Footnote 4

Includes FTEs associated with fulfilling the CRA's administrative responsibilities in support of Canada Pension Plan and Employment Insurance legislation.

Return to footnote 4 referrer

Footnote 5

Planned spending excludes severance payments, parental benefits, vacation credits and the carry-forward of unused funds from 2014-2015 where, pursuant to section 60(1) of the Canada Revenue Agency Act, the CRA has up to two fiscal years to utilize parliamentary appropriations once approved. This funding is received during the fiscal year and is included only in actual spending.

Return to footnote 5 referrer

Footnote 6

Includes the disbursements to the provinces under the Softwood Lumber Products Export Charge Act, 2006 (planned spending: $0 in 2015-2016; $80 million in 2014-2015; and $283 million in 2013-2014); (actual spending: $121.5 million in 2015-2016; -$15.1 million in 2014-2015; and $42.3 million in 2013-2014).

Return to footnote 6 referrer

Footnote 7

Includes payments to Revenu Québec for administering the goods and services tax in the province (actual spending: $142.3 million in 2015-2016; $142.1 million in 2014-2015; and $142.8 million in 2013-2014).

Return to footnote 7 referrer

Footnote 8

Includes statutory children's special allowance payments (planned spending: $237 million in 2015-2016; $246 million in 2014-2015; and $238 million in 2013-2014); (actual spending: $309.2 million in 2015-2016; $214.8 million in 2014-2015; and $235.4 million in 2013-2014).

Return to footnote 8 referrer

Footnote 9

The planned spending trend figure shows all parliamentary appropriations (Main Estimates and Supplementary Estimates) and revenue sources provided to the CRA for: policy and operational initiatives arising from various federal budgets and economic statements, transfers from the Department of Public Services and Procurement Canada for accommodations and real property services, disbursements under the Softwood Lumber Agreement, responsibilities related to the harmonization of sales tax, the children’s special allowance payments, as well as the implementation of initiatives to improve efficiency.

Return to footnote 9 referrer

Footnote 10

Total spending for fiscal years 2013-2014 to 2015-2016 also includes technical adjustments such as the CRA's carry-forward adjustments from the previous year and funding for maternity and severance benefits. The 2014-2015 fiscal year also includes expenditures associated with the one-time transition payment for implementing the pay in arrears model.

Return to footnote 10 referrer

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Date modified:

2016-11-14