Canadian Radio-television and Telecommunications Commission
2012-2013
Departmental Performance Report
Supplementary Information Tables

Table of Contents

• Sources of Respendable and Non-Respendable Revenue
  • Respendable Revenue
  • Non-Respendable Revenue
  • Total of Respendable and Non-Respendable Revenue
• User Fees Reporting
• External Fees
  • Explanation of Revenue
  • Broadcasting Licence Fees
    • Part I licence fees
    • Part II licence fees
  • Telecommunications Fees
  • Dispute Resolution – Fee Assessment

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue¹
($ millions)

Program Activity	2010-11 Actual	2011-12 Actual	2012-13
			Main Estimates	Planned Revenue	Total Authorities	Actual
Canadian Broadcasting
Broadcasting Licence Fees Part I	15.5	15.7	15.5	22.8	15.9	16.5
Canadian Telecommunications
Telecommunications Fees2	12.5	12.6	12.5	19.8	12.8	13.7
Internal Services3	14.6	14.7	14.6	–	14.9	11.5
Total Respendable Revenue1	42.6	43.0	42.6	42.6	43.6	41.7

 

Non-Respendable Revenue⁴
($ millions)

Program Activity	2010-11 Actual	2011-12 Actual	2012-13
			Main Estimates	Planned Revenue	Total Authorities	Actual
Canadian Broadcasting
Broadcasting Licence Fees Part I	12.8	8.8	3.7	7.8	6.6	6.9
Broadcasting Licence Fees Part II	100.0	101.8	–	104.8	104.8	104.8
Canadian Telecommunications
Telecommunications Fees	7.6	7.3	6.9	6.5	12.3	6.9
Internal Services3	–	–	–	–	–	–
Other Revenue5	2.0	1.9	–	0.1	–	4.0
Total Non-Respendable Revenue4	122.4	119.8	10.6	119.2	123.7	122.6

Total of Respendable and Non-Respendable Revenue
($ millions)

Program Activity	2010-11 Actual	2011-12 Actual	2012-13
			Main Estimates	Planned Revenue	Total Authorities	Actual
Total Revenue6	165.0	162.8	53.2	161.8	167.3	164.3

Note 1: The CRTC retains respendable (vote netted) revenue to fund its operating budget. This revenue is comprised of a part of the annual Broadcasting Licence Fees Part I and Telecommunications Fees.

Note 2: The Telecommunications Fees Regulations, 2010, made in March 2010, (Telecom Decision CRTC 2010-183 dated 25 March 2010) require all telecommunications service providers (TSPs), or groups of related TSPs, with at least $10 million dollars in Canadian telecommunications service revenues (CTSR) to pay telecommunications fees.

Note 3: Internal Services revenues are a component of the Part I Broadcasting Licence Fees and the annual Telecommunications Fees.

Note 4: Non-Respendable Revenue for the CRTC is attributed to four main factors that are described below:

1. Statutory Costs and Costs of Services provided by other government departments on behalf of the CRTC - Part I Broadcasting Licence Fees and CRTC Telecommunications Fees recover the costs incurred by other federal government departments for most services rendered without charge to the CRTC (e.g. PWGSC accommodation costs) and the statutory costs of employee benefit plans.
2. Annual Adjustment (True-up) of Part I Broadcasting Licence Fees and annual Telecommunications Fees - The Commission's broadcasting and telecommunications fees regulations have a provision whereby the Commission is able to adjust the annual fees (Part I Broadcasting Licence Fees and Telecommunications Fees) to take into account the Commission's actual expenditures on both Broadcasting and Telecommunications activities during the fiscal year. The adjustments represent the difference between the estimated costs initially billed in a previous fiscal year and the actual costs incurred and are accounted for as non-respendable revenue.

3. Part II Broadcasting Licence Fees - The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 for the Part II Licence Fees (Broadcasting Regulatory Policy CRTC 2010-476 dated 14 July 2010). A cap of $100 million was introduced for the calculation of Part II Licence Fees and this cap is adjusted annually on a compound basis in accordance with the percentage increase or decrease to the Consumer Price Index (CPI) for the calendar year prior to the year of the adjustments. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada. The planned revenue figure for Part II Licence Fees is adjusted and communicated to stakeholders once the CPI information is available. The CPI index was 1.8% for fiscal year 2011-12 and 2.9% for fiscal year 2012-13.

   Part II Broadcasting Licence Fees are non-respendable revenue as these fees recover part of the Government of Canada’s substantial annual investment in the Canadian broadcasting system.

Note 5: Other revenues are comprised of a) deferred revenue: Canadian Broadcasting – Part I Broadcasting Licence Fees ($3.7M); b) administrative monetary penalties and other miscellaneous revenue ($0.3M)

Note 6: All revenues are credited to the Consolidated Revenue Fund.

Note 7: Summary of CRTC Fees Assessed:

User Fees Reporting

The only fee that the CRTC currently collects which is subject to the reporting requirements of the User Fees Act relates to the processing of access requests filed under the Access to Information Act.

1. User Fee: Access to Information Fees
2. Fee Type: Other Products and Services (O)
3. Fee-Setting Authority: Access to Information Act
4. Date Last Modified: 1992
5. Performance Standards: Requests are completed as per the standards indicated in the Access to Information Act. Section 7 of the Act states that access to a record requested under this Act shall, subject to sections 8, 9 and 11 be made available within thirty (30) days after the request is received.
6. Performance Results: During FY 2012-13, 20 new requests were received and 7 requests were carried over from FY 2011-2012: 21 requests were completed and processed in the following time frames: 12 completed within 30 days; 4 within 31 to 60 days; 1 within 61 to 120 days; 4 within 121 to 365 days and 6 requests are still pending at the end of FY 2012-13.

2012-13 ($000)			Planning Years ($000)
Forecast Revenue	Actual Revenue	Full Cost	Fiscal Year	Forecast Revenue	Estimated Full Cost
1.0	0.9	182	2013-14	1	200
			2014-15	1	200
			2015-16	1	200

External Fees (Policy on Service Standard for External Fees)

CRTC assesses fees pursuant to the Broadcasting Licence Fee Regulations, 1997, and the Telecommunications Fees Regulations, 2010. These regulations can be located on the Department of Justice web site. The CRTC’s Part I broadcasting licence fees and telecommunications fees are considered to be external “regulatory fees” and not “user fees” as defined in the User Fees Act. Thus these fees, and the external reporting of any information related to these fees, are not subject to the provisions of the User Fees Act (UFA), but rather the Treasury Board Policy on Service Standards for External Fees .

In order to be as comprehensive and transparent as possible with respect to CRTC external fees, information on broadcasting and telecommunications fees is being presented in the following table.

			2012-2013
Name of Fee	Fee Type	Fee Setting Authority	Performance Standards	Performance Results	Stake-holder consultation 2012-13 or prior
Broadcasting Licence Fees Part I	Regulatory (R)	Broadcasting Act (Section 11) Broadcasting Licence Fee Regulations 1997	Part I Broadcasting applications: decision to be issued within 4 months of close of records (CoR) Broadcasting applications considered at Public Hearing: decision to be issued within 4 months of CoR Broadcasting applications – administrative route: decision to be rendered within 1 month of date of receipt Ownership-related applications: decision to be rendered within the timeframes set out below: Hearing route within 35 days of CoR Notice of consultation route: within 2 months of CoR Administrative route: within 2 months after the date of receipt	The broadcasting service standards performance can be found at: /eng/publications/reports/standards2012.htm 126 applications received, 88% of decisions issued within 4 months of CoR 171 applications received, 92% of decisions issued within 4 months of CoR 53 applications received, 91% of decisions rendered within 1 month of date of receipt 12 applications received, 75% of decisions rendered within timeframes 3 application received; 100% of decisions rendered within timeframes 34 applications received, 74% of decisions rendered within 2 months	Broadcasting Regulatory Policy CRTC 2010-476/ 20101
Broadcasting Licence Fees Part II	Right & Privilege/ Regulatory Charges	Broadcasting Act (Section 11) Broadcasting Licence Fee Regulations 1997	Not applicable	Not applicable	Broadcasting Regulatory Policy CRTC 2010-476/ 20101
Telecommu-nications Fees	Regulatory (R)	Telecommuni-cations Act (Section 68) Telecommu-nications Fees Regulations 2010	Part I Applications: decision to be issued within 4 months of the CoR Part 1 Applications – Local Forbearance: decision to be issued within 120 days of receiving complete application Tariff Applications and Intercarrier Agreements Services standards set as follows: 85% of determinations made on an interim or final basis within 2 month of receipt of complete application 95% of determinations to be made on an interim or final basis within 4 months of receipt of complete application Destandardization and / or Withdrawal Applications: to issue 95% of determinations on a final basis within 12 months	The telecommunications service standards performance can be found at: /eng/publications/reports/t_standards12.htm 54 applications received, 78% of decisions issued within 4 month of CoR 9 applications received, 100% decisions issued within 120 days 563 applications received, 94% completed within 2 months 563 applications received, 97% completed within 4 months 30 applications received, 100% completed within 12 months	Telecom Decision CRTC 2010-183 /2010
	Other (O)	Administrative monetary penalty AMPs and interest)	Not applicable	Not applicable

Note 1: Pursuant to section 11 of the Broadcasting Act, the Commission received Treasury Board approval in order to enact the amendments to the Broadcasting Licence Fee Regulations, 1997 (the amended Regulations). The amended Regulations came into effect on 23 June 2010. Commencing in 2011, the Part II licence fee is adjusted annually on a compound basis in accordance with the percentage increase or decrease, as the case may be, to the Consumer Price Index for the calendar year prior to the year of the adjustment. Part II licence fees recover part of the Government of Canada’s substantial annual investment in the Canadian broadcasting system.

Explanation of Revenue

The CRTC collects fees under the authority of regulations in the Broadcasting Act and Telecommunications Act. For the fiscal year 2012-2013:

Broadcasting Licence Fees

Section 11 of the Broadcasting Act gives the Commission the authority to make regulations respecting licence fees. These regulations apply to most licensees, who are required to pay their Part I and Part II licence fees to the Commission annually. The last amendment to the Broadcasting Licence Fee Regulations was done in 2010. Details on the amendment can be found in Broadcasting Regulatory Policy CRTC 2010-476 on the CRTC website. The Broadcasting Licence Fee Regulations can be found on the Department of Justice.

Part I Licence Fees

For 2012–2013, the CRTC assessed $30.6 million in Part I fees, including "true-up" and adjustments.

Part I licence fees are based on the broadcasting regulatory costs incurred each year by the Commission and other federal departments or agencies, and are equal to the aggregate of:

• the costs of the Commission’s broadcasting activities;
• the share of the costs of the Commission’s administrative activities that is attributable to its broadcasting activities; and
• other costs included in the net cost of the Commission’s program attributable to its broadcasting activities, excluding the costs of regulating the broadcasting spectrum (e.g. costs incurred by other federal departments for services rendered without charges to the CRTC such as accommodation costs).

The CRTC’s estimated broadcasting regulatory costs are set out in its Expenditure Plan published in Part III of the Estimates of the Government of Canada (Part III Report on Plans and Priorities).

There is an annual adjustment (‘true-up’) amount to the Part I fee to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the licensee in a following year’s invoice.

Part II Licence Fees

The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 (Broadcasting Regulatory Policy CRTC 2010-476). A cap of $100 million was introduced for the calculation of Part II licence fees and this cap is be adjusted annually on a compound basis in accordance with the percentage increase or decrease to the Consumer Price Index (CPI) for the calendar year prior to the year of the adjustments. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada.

These fees recover part of the Government of Canada’s substantial annual investment in the Canadian broadcasting system.

For 2012–2013, the CRTC assessed $104.8 million in Part II licence fees.

Telecommunications Fees

Section 68 of the Telecommunications Act grants the CRTC authority to create the Telecommunications Fees Regulations.

The Telecommunications Fees Regulations, 2010, made in March 2010 (Telecom Decision CRTC 2010-183 dated 25 March 2010) require all telecommunications service providers (TSPs), or groups of related TSPs, with at least $10 million dollars in Canadian telecommunications service revenues (CTSR) to pay Telecommunications Fees, whether or not they file a tariff for approval with the Commission. The Telecommunications Fees Regulations can be found on the Department of Justice web site.

For 2012–2013, the CRTC assessed $26.4 million in telecommunications fees, including "true-up" and adjustments.

The CRTC’s annual telecommunications fees are equal to the aggregate of:

• the cost of the Commission’s telecommunications activities;
• the share of the costs of the administrative activities that are attributable to the Commission’s telecommunications activities; and
• other costs attributable to the Commission’s telecommunications activities (e.g. costs incurred by other federal departments for services rendered without charges to the CRTC such as accommodation costs).

The CRTC’s estimated telecommunications regulatory costs are set out in its Expenditure Plan, published in Part III of the Estimates of the Government of Canada (Part III - Report on Plans and Priorities).

There is an annual adjustment (‘true-up’) amount to the telecommunications fees to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the carriers in the following year’s invoice.

Dispute Resolution – Fee Assessment

Under the CRTC’s dispute resolution process regarding the assessment of broadcasting licence fees and telecommunications fees:

• The first point of contact for fee payers concerning issues related to fee assessment or collection is the Commission’s Assistant Director, Financial Operations and Licence Fee Processing followed by the Director General Finance and Administrative Services. Fee payers may raise their concerns either by telephone conversation, e-mail or letter. To date the CRTC notes that the majority of fee payers concerns have been resolved at the staff level.
• Where an issue cannot be satisfactorily resolved at the staff level, fee payers are requested to document the nature of their concern in writing and submit it to the CRTC’s Secretary General for formal consideration. CRTC responds to all such letters.