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ACCOUNTABILITY
STATEMENT
This Business Plan for the three years
commencing April 1, 2001 was prepared under my direction in accordance with
the Government Accountability Act and the government’s accounting
policies. All of the government’s policy decisions as at April 3, 2001
with material economic or fiscal implications of which I am aware have been
considered in preparing the Business Plan.
The Ministry’s priorities outlined in the
Business Plan were developed in the context of the government’s business
and fiscal plans. I am committed to achieving the planned results laid out
in this Business Plan.
[original signed]
Greg Melchin,
Minister of Revenue
April 10,
2001
REVENUE'S
VISION AND REVENUE'S MISSION
Revenue’s Vision
To provide prudent and
innovative revenue and investment management.
Revenue’s Mission (Core
Businesses)
-
Manage and invest financial
assets prudently.
-
Administer tax and revenue
programs fairly and efficiently.
-
Manage risk associated with
loss of public assets.
-
Regulate Alberta’s capital
market.
REVENUE'S GOALS
FOR 2001-04
-
Develop and implement
sustainable revenue and investment frameworks that meet the province’s
needs.
-
Maximize investment returns
subject to client-defined objectives and policies.
-
A fair and competitive
provincial tax system managed efficiently and effectively.
-
Safeguard public assets from
accidental loss.
-
Foster a fair and efficient
capital market in Alberta.
Note:
In addition to the Revenue Department, the Ministry of Revenue includes the
activities of the Alberta Heritage Savings Trust Fund, Alberta Heritage
Foundation for Medical Research Endowment Fund, Alberta Heritage Scholarship
Fund, Alberta Risk Management Fund, Alberta Heritage Science and Engineering
Research Endowment Fund, and Alberta Securities Commission. Additional
details for the Alberta Securities Commission and the Alberta Heritage
Savings Trust Fund are contained in the supplementary information to the
Ministry Plan.
Note: Key
performance measures appear in bold throughout the goals section.
Goal
1: Develop and implement sustainable revenue and investment frameworks that
meet the province's needs
Related Core Government
Measures: Provincial Credit Rating, Accumulated Debt
| STRATEGIES/OUTPUTS |
OUTCOMES |
PERFORMANCE
MEASURES/TARGETS |
- Develop and implement a revenue
management framework for overall government revenues.
|
- Alberta’s revenues are managed
efficiently and effectively.
|
|
- Develop and implement an
investment management framework.
|
- A disciplined investment strategy.
|
|
- Lead a "Future Summit"
to chart a course for the province’s debt free future.
|
- A vision of Alberta’s future -
people, prosperity and preservation.
|
- Clear concise action for the
future.
|
Goal
2: Maximize investment returns subject to client-defined objectives and
policies
Related Core Government
Measures: Provincial Credit Rating, Accumulated Debt
| STRATEGIES/OUTPUTS |
OUTCOMES |
PERFORMANCE
MEASURES/TARGETS |
- Maximize long-term return on the
government’s investments to generate sustainable income to
support the province’s financial position.
|
- Continued investment performance
that meets or exceeds the established performance benchmarks.
|
- Clearly defined investment
benchmarks have been established for the government’s
investments.
|
- Develop a competitive and
sustainable business model for the investment of the government’s
financial assets and public sector client funds.
- Satisfy client needs (e.g. Heritage
Fund, public sector pension funds) by providing a wide range of
investment products.
- Analyze new products and implement
those that contribute to investment objectives.
- Continue to use a mix of direct
internal investment and external investment management firms.
- Continue to improve the quality of
investment performance measurement and client reporting.
- Enhance the management of risk by
implementing new monitoring and analytical tools.
- Maintain Revenue’s status as a
cost-effective provider.
|
- Focused and professional investment
operation with a strong governance structure.
- Efficient and prudent management of
the province’s financial assets.
- Efficient and prudent management of
assets of other funds (e.g., public sector pension funds) invested
by the Minister of Revenue.
|
- Annualized market value rates of
return (ROR) measured against benchmarks established by clients.
Heritage Fund:
Total Fund: ROR
compared against the province’s total debt portfolio on a market
value basis.
Endowment Portfolio:
ROR greater than a benchmark
portfolio.
(Details in Performance Measures
section.)
Returns will also be compared to other
major Canadian investment funds and to the rate of inflation. |
Goal
3: A fair and competitive provincial tax system managed efficiently and effectively
Related Core Government
Measures: Taxation Load, Job Growth, Cost of Government
| STRATEGIES/OUTPUTS |
OUTCOMES |
PERFORMANCE
MEASURES/TARGETS |
- Co-ordinate tax policy/changes within
the province.
- Work with stakeholders (provincial) to
review tax policy issues.
- Implement the April 1, 2001 business
tax plan changes; implement the 2002-04 tax plan steps subject to
affordability.
|
- A tax system that encourages Albertans
to work and that supports families.
- A competitive corporate tax regime
that attracts business and investment.
(Shared outcomes with Ministry of
Finance)
|
- Provincial tax load for a family of
four; target: the lowest in Canada.
Personal tax load; target: the lowest in
Canada.
Provincial tax load on businesses;
target: the lowest in Canada.
Per cent annual growth in business
registrations; target: 3%.
(Shared Performance Measures with
Ministry of Finance. Reported in Ministry of Finance.)
|
- Maintain an effective and affordable
tax system by encouraging self-compliance and addressing
non-compliance.
|
- High rate of compliance with tax
programs.
- Low level of outstanding disputes.
- Fair and consistent treatment of
taxpayers.
|
- Percentage of returns filed on time;
target: 97%.
- Percentage of accounts with a nil
balance; target: 97%
- Percentage of objections filed to
assessments and reassessments issued; target: 0.25%
|
- Reduce the cost of tax compliance for
both government and taxpayers by simplifying processes and expanding
the use of E-Business.
|
- Low costs of tax administration for
both taxpayers and government.
- Increased number of business entities
using E-Business.
|
- Satisfaction with tax administration;
target: 85%.
- Satisfaction with compliance costs;
target: 80%.
- Costs per $100 collected; target:
lowest in Canada.
- Use of E-Business; target: one-third
of all transactions in Tax and Revenue Administration conducted
electronically by the end of 2003-04.
|
- Work in partnership with Ministry of
Finance, Canada Customs and Revenue Agency and the other provinces
to harmonize tax programs and processes.
|
- Increased harmony of tax programs
between governments and reduced overlap and duplication.
|
- Acceptance of harmonization
initiatives by other jurisdictions.
|
Goal
4: Safeguard public assets from accidental loss
Related Core Government
Measures: Provincial Credit Rating
| STRATEGIES/OUTPUTS |
OUTCOMES |
PERFORMANCE
MEASURES/TARGETS |
- Control the cost of risk and
increase accountability of departments and agencies for
safeguarding public assets from accidental loss.
|
- Public assets are protected from
risk of significant accidental loss.
|
- Condition of the Risk Management
Fund; target: fund assets and liabilities balance.
- Satisfaction of ministries with
services provided; target: 4 out of 5 satisfied or very satisfied.
|
Goal
5: Foster a fair and efficient capital market
Related Core Government
Measures: GDP
| STRATEGIES/OUTPUTS |
OUTCOMES |
PERFORMANCE
MEASURES/TARGETS |
- Improve the regulatory and
enforcement environments in Alberta, and maintain working
relationships with industry, other securities regulatory
authorities, regulators of financial institutions and government.
|
- A fair and efficient capital market
in Alberta and confidence in that market.
|
- See Alberta Securities Commission
Three-Year Business Plan 2001-04.
|
KEY
PERFORMANCE MEASURES
Alberta Heritage Savings
Trust Fund
Total Fund
The market value rate of return of
the Fund, which includes income and realized and unrealized capital gains or
losses, is compared against the cost of the province’s total debt (Canadian
and U.S. dollar debt) on a market value basis.
Endowment Portfolio
The market value rate of return which includes
income and realized and unrealized capital gains or losses, is targeted to
exceed the rate of return, over a four-year period, of a benchmark portfolio.
EXPENSE
BY CORE BUSINESS
MINISTRY
STATEMENT OF OPERATIONS
C ONSOLIDATED
NET OPERATING RESULT
Go to: Seniors Business Plan 2001-04
| 
