Unaudited Supplementary Financial Information

Financial Performance Information – Parliamentary Appropriations

Introduction

This section of the CRA Annual Report to Parliament 2007-2008 provides the details of the Agency’s Resource Management performance for the purpose of reporting to Parliament on the use of appropriations in 2007-2008. This complements the information provided in the spending profile sections under each Program Activity 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 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 audited Statement of Operations – Agency Activities on includes certain items such as services received without charge from other government departments and federal agencies. A reconciliation can be found in Table 3, .

CRA financial information

Activities of the Agency

The Financial Statements – Agency Activities reports $3,609.1 million as total Parliamentary appropriations used (Note 3 b on shows the reconciliation to the net cost of operations). The difference from the $4,423.0 million reported in this section is explained by four items reported in the Financial Statements – Administered Activities: the payments to provinces under the Softwood Lumber Products Export Charge Act, 2006 $603.6 million; the Children’s Special Allowance, $208.2 million; the payments under the Energy Costs Assistance Measures Act, $1.0 million, and the Relief For Heating Expenses, $1.1 million (part of Vote 1, Program Expenditures).

Overview

For 2007-2008, Parliament approved $3,379.9 million through the Main Estimates, as shown in CRA’s 2007-2008 to 2009-2010 Corporate Business Plan.

The 2007-2008 Main Estimates have been adjusted to include:

• $603.6 million for the Statutory Payments related to the 2006 Canada/US Softwood Lumber Agreement and an additional $15 million for its preparation, implementation and administration;
• $257.1 million transferred from Public Works and Government Services Canada (PWGSC) for Accommodation Services;
• $167.7 million for the Carry-forward from 2006-2007;
• $61.3 million for Maternity and Severance payments;
• $45.2 million for Budget measures arising from the 2007 Federal Budget;
• $28.1 million increase for Respendable Revenue adjustment mainly for information technology services provided to Canada Border Services Agency (CBSA);
• $21.5 million for the implementation of a single administration of corporate tax for the Province of Ontario;
• $19.3 million for the National Initiative to address inter-provincial tax avoidance by corporations;
• $12.6 million for Collective Agreements;
• $10.5 million for Budget measures arising from the 2006 Federal Budget;
• $4.6 million for Legal and Income Tax Debt Set-off Activities of the Collection Litigations Advisory Services;
• $3.2 million for the Children’s Special Allowance Statutory Payments;
• $1.0 million for the administration of the one-time Energy Cost Benefit payments;
• $0.8 million transferred from Justice Canada for Legal Costs;
• $0.7 million for National Anti-Drug Strategy;
• $0.6 million for Electronic Services for Business Advertising Campaign;
• $0.5 million for Court Awards and Crown Assets Disposal;
• $0.2 million for other minor adjustments.

Offsetting these increases, the CRA returned $41.8 million related to Canada Pension Plan and Employment Insurance; $22.1 million pending the approval of the Offshore Trusts Initiative legislation and some $8.6 million in funding to the Treasury Board related to Payments to Private Collection Agencies. Agency Budgets were also adjusted by $0.7 million for Employee Benefits Plans reductions. This resulted in total approved authorities of $4,560.2 million for 2007-2008, representing an in-year increase of 35% over the Main Estimates.

Of the $4,560.2 million total authority, CRA’s actual spending totalled $4,423.0 million resulting in $137.2 million unexpended at year-end. After adjusting for unused resources related to the Residual Offshore Trusts and Charities Outreach Program, the remaining $134.9 million is available for use by the Agency in 2008-2009. This amount is within 5% of the total authority.

The $134.9 million carry forward to 2008-2009 will be directed primarily to selected strategic investments related to:

• Major project spending (Compliance Systems Redesign, Agency Classification Standards, Non-Tax Collections Systems Integration, GST Redesign);
• Special purpose funding (Softwood Lumber, Charities Outreach Program, Charities Public Security Anti-Terrorism Measures, Corporate Tax Administration for Ontario, Ministère du revenu du Québec for the Administration of the GST);
• Other operational and workload pressures.

Revenues administered by the Agency

Net revenues administered by the CRA totalled some $292.9 billion, an increase of 5% from the $279 billion administered in 2006-2007.

Date modified:

2009-01-29