2012-2013 Part III - Departmental Performance Report (DPR) - Privy Council Office

Annex I

Performance Summary Details

Variation between the 2012–13 Total Planned Spending ($126,767,000) and the 2012–13 Total Authorities ($144,810,000)

The increase of $18.0 million between the 2012–13 total planned spending and the 2012–13 total authorities was mainly due to:

• Funding in the amount of $11.8 million for salary-related and other departmental items:
  • $5.5 million for eligible expenses paid during the 2012–13 fiscal year that were reimbursed by the Treasury Board of Canada Secretariat. This amount includes the payment of severance pay requested by employees on a voluntary basis following the ratification of specific collective agreements and for other salary-related items such as parental leave and separation pay;
  • $6.0 million for the departmental 2011–12 Operating Budget Carry-Forward; and
  • $0.3 million for an increase in statutory items such as Employee Benefit Plans.
• Funding sought for new or ongoing initiatives resulting in an increase of $6.1 million:
  • $2.1 million transferred from the Treasury Board of Canada Secretariat for the operation of the Canadian Secretariat to the Canada-U.S. Regulatory Cooperation Council (Canadian RCC Secretariat);
  • $1.4 million to support operational activities of the Business Transformation and Renewal Secretariat. Funding received is not a new draw from the fiscal framework since funds were transferred from 25 departments;
  • $1.3 million to continue to support the coordination of government-wide communications for Canada’s Economic Action Plan; and
  • $1.3 million for the government-wide coordination of the Canada-U.S. Perimeter Security and Economic Competitiveness Action Plan.
• Funding sought for the completion of the activities of the Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River in the amount of $1.7 million. On October 31, 2012, the report was officially released to the public and the Commission completed its operations in December 2012.
• These increases were partially offset by budget reductions in the amount of $1.8 million:
  • $1.3 million in savings identified as part of the Spending Review announced in Canada’s EAP 2012; and
  • $0.5 million for a return of funds following a decrease in spending identified in the day-to-day operations of the Prime Minister’s Office.

Variation between the 2012–13 Total Authorities ($144,810,000) and the 2012–13 Total Actual Spending ($130,232,000)

PCO’s budget includes funds for commissions of inquiry and for the Canadian RCC Secretariat. These funds are segregated from PCO’s funds and are not available for any other purpose, nor are they eligible to be part of PCO’s Carry-Forward calculations; these funds are kept in a Special Purpose Allotment (SPA). In addition to SPAs, PCO had a frozen allotment, which contains funds that must lapse at the end of the year. In 2012–13, PCO’s surplus was $14.6 million ($1 million in SPAs and $13.6 million in PCO’s regular allotments that include $0.9 million of frozen allotments), which is explained as follows:

Commissions of Inquiry (SPA): $0.4 million surplus

• The Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River generated a surplus of $0.4 million. This surplus is mostly explained by anticipated expenditures being less than expected during the final months of operation. On October 31, 2012, the Commission’s final report was officially released to the public and the Commission completed its operations in December 2012.

Canadian RCC Secretariat (SPA): $0.6 million surplus

• The Canadian RCC Secretariat generated a surplus of $0.6 million, which is explained by an overall decrease in the Secretariat’s activities because of the presidential election in the United States, as well as by changes in the Secretariat’s priorities and savings related to staffing.

PCO: $13.6 million surplus ($12.7 million, excluding a frozen allotment)

• PCO generated a surplus of $12.7 million, excluding a frozen allotment, which is primarily explained by a decrease in spending as a result of financial prudence prompted by the deficit reduction measures announced in EAP 2012, as well as the impacts of other cost-saving exercises (e.g., cost-containment measures and PCO’s 2010 Strategic Review). Other factors which contributed to this surplus included savings resulting from delays in various projects, lower than anticipated costs for travel, hospitality and conferences, and delays in procurement.
• The surplus of $0.9 million related to a frozen allotment is a result of unspent funds from ministers’ offices within PCO’s portfolio.

Variation between the Total Actual Spending in 2012–13 ($130,232,000) and 2011-12 ($155,430,000)

In 2012–13, PCO’s overall spending decrease of $25.2 million is the result of several factors affecting the department. Some of the reasons for the decreased spending were as follows:

• $8.6 million less spending on the Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River as the Commission was only operational for a portion of the 2012–13 fiscal year, having completed its operations in December 2012;
• $7.8 million less spending during the year for severance pay requested by employees on a voluntary basis following the ratification of specific collective agreements, for other salary-related items such as parental leave, separation pay, and for employee benefit plans; 
• $6.3 million as an overall reduction in spending resulting from PCO’s 2010 Strategic Review identified in EAP 2011 and deficit reduction measures announced in EAP 2012;
• $3.3 million related to the staged transfer of information technology resources (PCO’s email systems, data centre and network services) to the Government of Canada’s new agency, Shared Services Canada; and
• $2.4 million for temporary initiatives which have sunsetted. Due to its coordinating role across the federal government, PCO often hosts new groups which are temporary in nature. This was the case for the Afghanistan Task Force and the Panel of Arbiters, both of which terminated their operations in 2011‑12.

These decreases were partially offset by:

• $3.8 million in spending on workforce adjustment costs associated with the implementation of PCO’s 2010 Strategic Review identified in EAP 2011 and the Spending Review announced as part of EAP 2012; and
• $2.0 million in spending for the government-wide coordination of the Canada-U.S. Perimeter Security and Economic Competitiveness Action Plan (Beyond the Border Action Plan) and for the Canadian RCC Secretariat. In December 2011, Prime Minister Stephen Harper and the President of the United States released joint action plans for both the RCC and the “Beyond the Border” initiatives. Since that time, the Canadian RCC Secretariat and the Border Implementation Team (established in the Privy Council Office in 2012) have worked closely with U.S. counterparts to deliver results under the plans.