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Estimates
Results-based Management
Foreword
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Catalogue No. :
BT31-4/43-2004
ISBN:
0-660-62641-1
Printable Version

DPR 2003-2004
Human Resources and Skills Development Canada

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Section IX: Supplemental Data and Information

Financial Performance Overview

The financial tables 1.0, 1.1 and 1.2 on the following pages provide information on HRDC prior to the restructuring of December 12th, 2003. It also provides the authority and actual spending for HRSDC as it would have been reported if HRSDC had been a separate entity as of April 1, 2003.

In 2003-2004, the revised HRSDC actual expenditures were $3,459 million which is $32 million lower than HRSDC's revised total authorities of $3,491. This was mainly due to:

  • grants and contributions expenditures being $26 million less than originally projected. The lapse can be mainly attributed to funding being reprofiled to 2004-2005 for the Homelessness Initiative and to the lapsing of other grant and contributions programs such as Youth, Older Worker Pilot Projects, Learning; and
  • a net operating lapse of $6 million due to delays in deferred projects.

Note: All financial tables within this report are expressed in millions of dollars and amounts showed as $0.0 represent values that are smaller than $50 thousand.

Table 1: Financial Requirements by Authority

Table 1: Financial Requirements by Authority
Vote (millions of dollars) 2003-2004
Main Estimates HRDCa Planned Spending HRDCa Total Authorities HRDCa Authorities transferred SDCb Revised Authorities HRSDCc
  DEPARTMENT
1 Operating expenditures 522.9 525.4 544.7 (259.1) 285.6
5 Grants and contributions 813.4 1,105.7 1,035.7 (247.2) 788.5
6 Write off debts – Government Annuities Account - - 0.1 - 0.1
(S) Minister of HRD – Salary and motor car allowance 0.1 0.1 0.1 (0.1) -
(S) Minister of Labour – Salary and motor car allowance 0.1 0.1 0.1 - 0.1
(S) Interest payments under the Canada Student Loans Act 2.0 2.0 0.2 - 0.2
(S) Liabilities under the Canada Student Loans Act 31.3 31.3 (28.1) - (28.1)
(S) Interest and other payments under the Canada Student Financial Assistance Act 104.3 104.3 105.2 - 105.2
(S) Grants to the trustees of Registered Education Savings Plans pursuant to Part III.I of the Department of Human Resources Development Act 395.0 395.0 394.1 - 394.1
(S) Canada Student Financial Assistance Act – Canada Study Grants 93.7 93.7 66.8 - 66.8
(S) Canada Student Financial Assistance Act – Direct Financing 149.4 268.0 317.1 - 317.1
(S) Supplementary Retirement Benefits – Annuities agents' pensions - - - - -
(S) Labour Adjustment Benefits payments - - - - -
(S) Payments of compensation respecting government employees and merchant seamen 60.0 60.0 47.3 - 47.3
(S) Payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act 14.7 14.7 14.3 - 14.3
(S) Old Age Security payments 20,600.0 20,600.0 20,696.8 (20,696.8) -
(S) Guaranteed Income Supplement payments 5,805.0 5,805.0 5,792.0 (5,792.0) -
(S) Allowance payments 395.0 395.0 413.6 (413.6) -
(S) Contributions to employee benefit plansd 213.4 214.1 223.6 (98.6) 125.0
(S) Spending of proceeds from disposal of surplus Crown Assets - - 0.4 (0.4) -
(S) Refunds of amounts credited to revenues in previous years - - - - -
(S) Civil Service Insurance actuarial liability adjustment 0.1 0.1 0.2 - 0.2
  Total Budgetary 29,200.4 29,614.5 29,624.2 (27,507.8) 2,116.4
Plus: Non-Budgetary
  Loans disbursed under Canada Student Financial Assistance Act 1,526.1 1,526.1 1,374.1 - 1,374.1
Total Department 30,726.5 31,140.6 30,998.3 (27,507.8) 3,490.5
 
  Main Estimates HRDCa Planned Spending HRDCa Total Authorities HRDCa Authorities transferred SDCb Revised Authorities HRSDCc
Plus: Specified Purpose Accounts:
  Employment Insurance (EI) costs - 17,181.1 17,159.8 - 17,159.8
  Canada Pension Plan (CPP) costs - 22,739.0 23,023.5 (23,023.5) -
  Other Specified Purpose Accounts costs - 60.5 58.4 - 58.4
  Costs recoverable from EI Account and CPP - - 584.4 (574.3) 10.1
  Employee Benefit Plan recoverable from EI Account and CPP - (158.5) (122.4) 26.1 (96.3)
Total Expenditures 30,726.5 70,962.7 71,702.0 (51,079.5) 20,622.5
Full Time Equivalents 22,124 22,187 24,040 (10,130) 13,910
a. The Main Estimates, Planned Spending and Total Authorities columns apply to 2003-2004 HRDC prior to the restructuring of December 12, 2003. The total Authorities exclude frozen resources related to Vote 1 - Operating Expenditures ($29.3 million) and to Vote 5 - Grants and Contributions ($15.0 million).
b. As a result of the December 12, 2003 restructure and using all HRDC's activities, the authorities represent the best approximation pertaining to the transfer to SDC as it would have been reported if SDC had been a separate entity as of April 1, 2003.
c. Best approximation of HRSDC's total authorities approved during 2003-2004. Using all HRDC's activities, total authorities pertaining to HRSDC's mandate were transferred to HRSDC as a result of the December 12, 2003 restructure of HRDC as it would have been reported if HRSDC had been a separate entity as of April 1, 2003.
d. This statutory item includes the government's contributions as an employer to various benefit plans such as the Public Service Superannuation Account, the Public Service Death Benefit Account, the Employment Insurance (EI) Account and the Canada/Quebec Pension Plans. The amount is partially recoverable from the EI Account and Canada Pension Plan.

Table 1.1: Expenditures by Authority
Vote (millions of dollars) 2003-2004
Total Actual HRDCa Actuals transferred to SDCb Revised Actual HRSDCc
  DEPARTMENT
1 Operating expenditures 528.4 (248.8) 279.6
5 Grants and contributions 1,004.5 (242.0) 762.5
6 Write off debts - Government Annuities Account 0.1 - 0.1
(S) Minister of HRD - Salary and motor car allowance 0.1 (0.1) -
(S) Minister of Labour - Salary and motor car allowance 0.1 - 0.1
(S) Interest payments under the Canada Student Loans Act 0.2 - 0.2
(S) Liabilities under the Canada Student Loans Act (28.1) - (28.1)
(S) Interest and other payments under the Canada Student Financial Assistance Act 105.2 - 105.2
(S) Grants to the trustees of Registered Education Savings Plans pursuant to Part III.I of the Department of Human Resources Development Act 394.1 - 394.1
(S) Canada Student Financial Assistance Act - Canada Study Grants 66.8 - 66.8
(S) Canada Student Financial Assistance Act - Direct Financing 317.1 - 317.1
(S) Supplementary Retirement Benefits - Annuities agents' pensions - - -
(S) Labour Adjustment Benefits payments - - -
(S) Payments of compensation respecting government employees and merchant seamen 47.3 - 47.3
(S) Payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act 14.3 - 14.3
(S) Old Age Security payments 20,696.8 (20,696.8) -
(S) Guaranteed Income Supplement payments 5,792.0 (5,792.0) -
(S) Allowance payments 413.6 (413.6) -
(S) Contributions to employee benefit plansd 223.6 (98.6) 125.0
(S) Spending of proceeds from disposal of surplus Crown Assets 0.2 (0.2) -
(S) Refunds of amounts credited to revenues in previous years - - -
(S) Civil Service Insurance actuarial liability adjustment 0.2 - 0.2
  Total Budgetary 29,576.5 (27,492.1) 2,084.4
Plus: Non-Budgetary
  Loans disbursed under Canada Student Financial Assistance Act 1,374.1 - 1,374.1
Total Department 30,950.6 (27,492.1) 3,458.5
 
  Total Actual HRDCa Actuals transferred to SDCb Revised Actual HRSDCc
Plus: Specified Purpose Accounts:
  Employment Insurance (EI) costs 16,651.0 - 16,651.0
  Canada Pension Plan (CPP) costs 23,016.3 (23,016.3) -
  Other Specified Purpose Accounts costs 58.4 - 58.4
  Costs recoverable from EI Account and CPP 554.0 (543.9) 10.1
  Employee Benefit Plan recoverable from EI Account and CPP (116.0) 26.5 (89.5)
Total Expenditures 71,114.3 (51,025.8) 20,088.5
Full Time Equivalents 23,947 (10,037) 13,910
a. Total actual expenditures for HRDC as reported in the 2003-2004 Public Accounts of Canada.
b. As a result of the December 12, 2003 restructure and using all HRDC's activities, the actual expenditures represent the best approximation pertaining to the transfer to SDC as it would have been reported if SDC had been a separate entity as of April 1, 2003.
c. Best approximation of HRSDC's actual expenditures as a result of the December 12, 2003 restructure. Using all HRDC's activities, actual expenditures pertaining to HRSDC's mandate were transferred to HRSDC as it would have been reported if HRSDC had been a separate entity as of April 1, 2003.
d. This statutory item includes the government's contributions as an employer to various benefit plans such as the Public Service Superannuation Account, the Public Service Death Benefit Account, the Employment Insurance (EI) Account and the Canada/Quebec Pension Plans. The amount is partially recoverable from the EI Account and Canada Pension Plan.

 

Table 1.2: Impact of December 12, 2003 Announcements
Human Resources and Skills Development's Funding
Received from Human Resources Development		 2003-2004
Vote (millions of dollars) Revised Authorities HRSDCa Revised Actual HRSDCb
  DEPARTMENT
1 Operating expenditures 285.6 279.6
5 Grants and contributions 788.5 762.5
6 Write off debts - Government Annuities Account 0.1 0.1
(S) Minister of Labour - Salary and motor car allowance 0.1 0.1
(S) Interest payments under the Canada Student Loans Act 0.2 0.2
(S) Liabilities under the Canada Student Loans Act (28.1) (28.1)
(S) Interest and other payments under the Canada Student Financial Assistance Act 105.2 105.2
(S) Grants to the trustees of Registered Education Savings Plans pursuant to Part III.I of the Department of Human Resources Development Act 394.1 394.1
(S) Canada Student Financial Assistance Act - Canada Study Grants 66.8 66.8
(S) Canada Student Financial Assistance Act - Direct Financing 317.1 317.1
(S) Supplementary Retirement Benefits - Annuities agents' pensions - -
(S) Labour Adjustment Benefits payments - -
(S) Payments of compensation respecting government employees and merchant seamen 47.3 47.3
(S) Payments to private collection agencies pursuant to Section 17.1 of the Financial Administration Act 14.3 14.3
(S) Contributions to employee benefit plansc 125.0 125.0
(S) Spending of proceeds from disposal of surplus Crown Assets - -
(S) Refunds of amounts credited to revenues in previous years - -
(S) Civil Service Insurance actuarial liability adjustment 0.2 0.2
  Total Budgetaryd 2,116.4 2,084.4
Plus: Non-Budgetary
  Loans disbursed under Canada Student Financial Assistance Act 1,374.1 1,374.1
Total Department 3,490.5 3,458.5
 
  Revised Authorities HRSDCa Revised Actual HRSDCb
Plus: Specified Purpose Accounts:
  Employment Insurance (EI) costs 17,159.8 16,651.0
  Other Specified Purpose Accounts costs 58.4 58.4
  Costs recoverable from EI Account and CPP 10.1 10.1
  Employee Benefit Plan recoverable from EI Account and CPP (96.3) (89.5)
Total Expenditures 20,622.5 20,088.5
Full Time Equivalents 13,910 13,910

Note: On March 8, 2004, responsibility for the Toronto Waterfront Revitalization Initiative was transferred from the Minister of Transport to the Minister of HRSDC. Reporting for 2003-2004 is conducted by HRSDC under Section VIII.

a. Best approximation of HRSDC's total authorities approved during 2003-2004. Using all HRDC's activities, total authorities pertaining to HRSDC's mandate were transferred to HRSDC as a result of the December 12, 2003 restructure of HRDC as it would have been reported if HRSDC had been a separate entity as of April 1, 2003.
b. Best approximation of HRSDC's actual expenditures as a result of the December 12, 2003 restructure. Using all HRDC's activities, actual expenditures pertaining to HRSDCs mandate were transferred to HRSDC as it would have been reported if HRSDC had been a separate entity as of April 1, 2003.
c. This statutory item includes the government's contributions as an employer to various benefit plans such as the Public Service Superannuation Account, the Public Service Death Benefit Account, the Employment Insurance Account and the Canada/Quebec Pension Plans. The amount is partially recoverable from the Employment Insurance Account and CPP.
d. Excludes the cost of services provided by other departments (actuals $25.1 million).

Table 2: Comparison of Total Spending to Actual Spendinga

Table 2: Comparison of Total Spending to Actual Spending a
  Restated 2003-2004b
(millions of dollars) Main Estimatesc Planned Spending Authorities Actual
Business Lines
Employment Insurance Benefits 515.5 515.5 517.1 514.1
Employment Programs 782.0 821.5 773.7 755.1
Workplace Skills 55.8 55.8 58.1 56.0
Learning 865.5 984.1 937.3 934.2
Labour 183.1 183.1 180.8 179.0
Homelessness 25.4 160.4 159.5 151.6
Policy, Program and Service Delivery Support 215.3 340.3 374.5 368.1
Total Gross Expenditures 2,642.6 3,060.7 3,001.0 2,958.1
Respendable revenues (849.5) (853.5) (884.6) (873.7)
Total Net Expenditures 1,793.1 2,207.2 2,116.4 2,084.4
Non-Budgetary
Loans disbursed under Canada Student Financial Assistance Act		 1,526.1 1,526.1 1,374.1 1,374.1
Total Department 3,319.2 3,733.3 3,490.5 3,458.5
Plus: Specified Purpose Accounts
Employment Insuranced   17,181.1 17,159.8 16,651.0
Other Specified Purpose Accounts   60.5 58.4 58.4
Departmental Recoveries charged to the CPP   9.0 10.1 10.1
Departmental Employee Benefit Plan recoverable from EI Account and Canada Pension Plan (CPP)   (90.5) (96.3) (89.5)
Total HRSDC   20,893.4 20,622.5 20,088.5
Full Time Equivalents 12,574 12,637 13,910 13,910
a. Refer to HRDC's previous Performance Reports for financial information on 2001-2002 and 2002-2003. Historical comparison of 2001-2002 and 2002-2003 actual expenditures for HRSDC is not available.
b. Restated as a result of the December 12, 2003 restructure of HRDC into HRSDC and Social Development Canada. Best approximation based on HRDC totals, broken down by activity and allocated to each department.
c. Restated HRSDC's authorities as published in the 2004-2005 Main Estimates.
d. Employment Insurance Benefits for 2003-2004 represent the Budget 2004 forecasts.

Table 3: Crosswalk Between Strategic Outcomes and Business Lines

The table below identifies the six strategic outcomes that HRSDC endeavours to provide for Canadians, and the links between business lines (i.e., Employment Insurance Benefits, Employment Programs, Workplace Skills, Learning, Labour, Homelessness, and Policy, Program and Service Delivery Support) and those strategic outcomes.

Table 3: Crosswalk Between Strategic Outcomes and Business Lines
Business Lines Strategic Outcomes Total
Efficient and effective income support and labour market transitions Enhanced competitiveness of Canadian workplaces by supporting investment in an recognition and utilization of skills Through access to learning, Canadians can participate fully in a knowledge-based economy and society Safe, healthy, fair, stable, cooperative and productive workplaces Enhanced community capacity to contribute to the reduction of homelessness Seamless, integrated and multi-channel service delivery that ensures client satisfaction
Employment Insurance Benefits FTEs 6,754           6,754
$M $13,624.6           $13,624.6
Employment Programs FTEs 2,586           2,586
$M $2,706.0           $2,706.0
Workplace Skills FTEs   519         519
$M   $96.2         $96.2
Learning FTEs     463       463
$M     $2,317.3       $2,317.3
Labour FTEs       667     667
$M       $179.3     $179.3
Homelessness FTEs         241   241
$M         $151.6   $151.6
Policy, Program and Service Delivery Support FTEs           2,680 2,680
$M           $385.3 $385.3
Total FTEs 9,340 519 463 667 241 2,680 13,910
$M $16,330.6 $96.2 $2,317.3 $179.3 $151.6 $385.3 $19,460.3
Other Costs
EI Costs (Other Government Departments Administrative Costs and Doubtful Accounts) $701.0
Workers Compensation Recoveries ($72.8)
Total Other Costs $628.2
Total HRSDC $20,088.5

 

Table 4: Details of Respendable and Non-Respendable Revenuesa
Revenues by Business Line (millions of dollars) Restated 2003-2004b
Planned Revenues Authorities Actual
Respendable Revenuesc
Employment Insurance Benefits 447.9 455.8 452.9
Employment Programs 152.4 124.3 120.9
Workplace Skills 37.9 37.6 36.7
Learning 13.5 15.1 14.6
Labour 64.0 73.7 73.7
Homelessness - - -
Policy, Program and Service Delivery Support 137.8 178.1 174.9
Total Respendable Revenues 853.5 884.6 873.7
Non-Respendable Revenues
By Type of Revenue:
Recovery of Employee Benefit Costs 135.3 132.7 132.7
Adjustment to Prior Years' Payables - 0.3 0.3
Canada Student Loans 144.2 230.3 230.3
Actuarial Surplus - 2.5 2.5
Miscellaneous Items 1.7 4.5 4.5
Total Non-Respendable Revenues 281.2 370.3 370.3
a. Refer to HRDC's previous Performance Reports for financial information on 2001-2002 and 2002-2003. Historical comparison is not possible as 2001-2002 and 2002-2003 actual expenditures for HRSDC are not available as the financial coding does not allow to crosswalk the data between the former and new business lines.
b. The financial data has been restated as a result of December 12, 2003 restructure of HRDC into Social Development Canada and HRSDC. It represents the best approximation for these Business Lines as if HRSDC had been a separate entity as of April 1, 2003.
c. Includes administrative costs recovered from the Employment Insurance Account and the Canada Pension Plan.

Table 5: Summary of Statutory Transfer Payments by Business Linesa

Table 5: Summary of Statutory Transfer Payments by Business Line a
(millions of dollars) 2001-2002 2002-2003 Restated 2003-2004
Actual Actual Main Estimates Planned Spending Authorities Actual
Employment Insurance Benefits
(S) Civil Service Insurance actuarial liability adjustment 0.3 0.1 0.2 0.2 0.2 0.2
Learning
(S) The provision of funds for interest payments to lending institutions under the Canada Student Loans Act 0.7 0.4 2.0 2.0 0.2 0.2
(S) The provision of funds for liabilities including liabilities in the form of guaranteed loans under the Canada Student Loans Act (2.9) (31.5) 31.3 31.3 (28.1) (28.1)
(S) Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act 48.6 76.0 56.7 175.3 266.3 266.3
(S) The provision of funds for interest and other payments to lending institutions and liabilities under the Canada Student Financial Assistance Act 332.9 139.6 104.3 104.3 105.2 105.2
(S) Grants to the trustees of Registered Education Savings Plans (RESPs) for the benefit of beneficiaries named under those RESPs, pursuant to the Canada Education Savings Grant Regulations of the Department of Human Resources Development Act 334.2 342.9 395.0 395.0 394.1 394.1
(S) Canada study grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act regulations 69.7 54.5 93.7 93.7 66.8 66.8
(S) Labour Adjustment Benefits in accordance with the terms and conditions prescribed by the Governor in Council to assist workers who have been laid off as a result of import competition, industrial restructuring, or severe economic disruption in an industry or region 1.0 0.3 0.0 0.0 0.0 0.0
  784.2 582.2 683.0 801.6 804.5 804.5
Labour
(S) Payments of compensation respecting government employees and merchant seamen 0.0 0.0 0.0 0.0 0.0 0.0
Total Statutory Transfer Payments 784.5 582.3 683.2 801.8 804.7 804.7
a. As a result of the December 12, 2003 restructure of HRDC into SDC and HRSDC, these programs were transferred to HRSDC.

 

Table 6: Summary of Non-Statutory Transfer Payments by Business Lines

Table 6: Summary of Non-Statutory Transfer Payments by Business Linesa
(millions of dollars) 2001-2002 2002-2003 Restated 2003-2004
Actual Actual Main Estimates Planned Spending Authorities Actual
GRANTS
Employment Programs
Grants to individuals, organizations and corporations to assist individuals to improve their employability and to promote employment opportunities by assisting local entrepreneurial development 0.4 0.4 8.2 8.2 8.2 0.1
Temporary Fisheries Income Program - - - - 8.2 8.0
Class grant related to Severe Acute Respiratory Syndrome - - - - 0.9 0.6
Named Grants for the Organization for Economic Co-Operation and Development - - - - 0.3 0.1
  0.4 0.4 8.2 8.2 17.6 8.8
Learning
Grants to voluntary sectors, professional organizations, universities and post-secondary institutions and to provincial and territorial governments for literacy 24.9 27.3 28.2 28.2 28.2 28.0
Grant to the Peter Gzowski Foundation for Literacy - 5.0 - - - -
Grant to the Government of Quebec to ensure appropriate support of its provincial student assistance program - 53.7 - - - -
Grant to the Government of the Northwest Territories to ensure appropriate support of its territorial student assistance program - 0.3 - - - -
Grant to the Government of Nunavut to ensure appropriate support of its territorial student assistance program - 0.3 - - - -
  24.9 86.6 28.2 28.2 28.2 28.0
Labour
Canadian Joint Fire Prevention Publicity Committee 0.0 0.0 0.0 0.0 0.0 0.0
Fire Prevention Canada 0.0 0.0 0.0 0.0 0.0 0.0
To support activities which contribute to Occupational safety and health program objectives 0.0 0.0 0.0 0.0 0.0 0.0
To support standards-writing associations 0.0 0.0 0.0 0.0 0.0 0.0
Grants to international and domestic organizations for technical assistance and international cooperation on labour issues 0.1 0.1 - - 0.1 0.1
  0.1 0.1 0.0 0.0 0.1 0.1
Homelessness
Grants to not-for-profit organizations, individuals, municipal governments, Band/tribal councils and other Aboriginal organizations, public health and educational institutions, Régies régionales, for-profit enterprises, research organizations and research institutes to carry out research on homelessness to help communities better understand and more effectively address homelessness issues - - - - 0.5 0.2
Policy, Program and Service Delivery Support
Grant to the Canadian Council on Learning - - - 100.0 85.0 85.0
Total Non-Statutory Transfer Payments 25.4 87.1 36.4 136.4 131.4 122.1
 
Table 6: Summary of Non-Statutory Transfer Payments by Business Linea
(millions of dollars) 2001-2002 2002-2003 Restated 2003-2004
Actual Actual Main Estimates Planned Spending Authorities Actual
CONTRIBUTIONS
Employment Programs
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market 481.7 476.9 489.2 521.5 490.2 486.4
Contributions to organizations, provinces, territories, municipalities, post-secondary institutions and individuals to encourage and support initiatives which will contribute to the development of a more results-oriented, accessible, relevant and accountable learning systemb - - 3.4 3.4 - -
  481.7 476.9 492.6 524.9 490.2 486.4
Learning
Contributions to organizations, provinces, territories, municipalities, post-secondary institutions and individuals to encourage and support initiatives which will contribute to the development of a more results-oriented, accessible, relevant and accountable learning systemb 2.8 3.5 - - 4.0 3.4
Contributions to organizations, provinces, territories, municipalities, post-secondary institutions and individuals to encourage and support initiatives with respect to the development, application, use and diffusion of new learning and training technologies (Office of Learning Technologies) 2.1 2.0 2.8 2.8 2.4 1.8
Contributions to voluntary sectors, professional organizations, universities and post-secondary institutions and to provincial and territorial governments for literacy 3.4 0.6 - - 2.1 1.9
  8.3 6.1 2.8 2.8 8.5 7.1
Workplace Skills
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market - 4.3 13.0 13.0 15.1 14.0
Labour
Labour Management Partnership Program 0.7 0.5 1.6 1.6 1.6 1.0
Labour Commision 1.1 1.1 1.6 1.6 1.6 0.8
  1.8 1.6 3.2 3.2 3.2 1.8
Homelessness
Homelessness – Contributions to provinces, territories, municipalities, other public bodies, organizations, community groups, employers and individuals to support activities to help alleviate and prevent homelessness across Canada 73.1 148.6 25.4 160.4 119.6 119.6
Contributions to not-for-profit organizations, individuals, municipal governments, Band/tribal councils and other Aboriginal organizations, public health and educational institutions, Régies régionales, for-profit enterprises, research organizations and research institutes to support activities to help alleviate and prevent homelessness across Canada and to carry out research on homelessness to help communities better understand and more effectively address homelessness issues - - - - 17.2 10.1
  73.1 148.6 25.4 160.4 136.8 129.7
Policy, Program and Service Delivery Support
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market - - - - 3.3 1.4
Early Learning and Child Carec - - - 25.0 - -
  - - - 25.0 3.3 1.4
Total Non-Statutory Transfer Payments 564.9 637.5 537.0 729.3 657.1 640.4
a. As a result of the December 12, 2003 restructure of HRDC into SDC and HRSDC, these programs were transferred to HRSDC.
b. Total amount included in the reference level in 2003-2004 for this non-statutory transfer payment will be transfered from Employment Programs to Learning in the ARLU 2005-2006 to 2007-2008.
c. Item from Budget 2003 included in HRDC planned spending. Relates to spending made via the Canada Social Transfer to provinces and territories not part of HRSDC.

 

Table 7: Loans Disbursed Under the Canada Student Financial Assistance Act

Table 7: Loans Disbursed Under the Canada Student Financial Assistance Act
Loans, Investments and Advances (millions of dollars)a 2001-2002 2002-2003 Restated 2003-2004
Actual Actual Planned Spending Authorities Actual
Learning
Loans disbursed under the Canada Student Financial Assistance Actb 1,544.1 1,395.4 1,526.1 1,374.1 1,374.1
Total 1,544.1 1,395.4 1,526.1 1,374.1 1,374.1
a. Transferred to HRSDC as a result of the December 12, 2003 restructure of HRDC into SDC and HRSDC.
b. The reduction for the loans is mainly due to the impact of loan reimbursements from borrowers on the loan portfolio.

 

Table 8: Contingent Liabilities
Contingent Liabilities (millions of dollars) Amount of Contingent Liabilities
As of
March 31, 2002		 As of
March 31, 2003		 As of
March 31, 2004
Loans
Canada Student Loans Program 802.1 681.4 444.3
Litigations 2.1 0.1 0.2
Total 804.2 681.5 444.5

 

Table 9: External Charging

Table 9: External Charging
Name of User Fee   2003-2004
Fee Type (R) or (O)a Fee Setting Authority Forecast Revenue ($000) Actual Revenue ($000) Full Cost ($000) Performance Standardb Performance Resultc
Federal Workers' Compensation -
Administation Fees (O) Government Employees
Compensation Act		 1,700 1,913 3,400 None None
Other Initiative - Labour
Fire Protection Engineering
Services Fees		 (O) Financial Administration Act 32 14 3,334 None None
Total External Charging 1,732 1,927 6,734  
a. Regulatory (R) or Other Products and Services (O).
b. The Labour Program will review its performance standards with the goal of presenting this information in its next Departmental Performance Report.
c. The Labour Program will present performance results once performance standards have been established.

 

Table 9: External Charging - Planning Years
Name of User Fee   Planning Years
2004-2005 2005-2006 2006-2007
Fee Type (R) or (O)a Fee Setting Authority Forecast Revenue ($000) Estimated Full Cost ($000) Forecast Revenue ($000) Estimated Full Cost ($000) Forecast Revenue ($000) Estimated Full Cost ($000)
Federal Workers' Compensation -
Administation Fees (O) Government Employees
Compensation Act		 2,000 3,500 2,100 3,600 2,200 3,700
Other Initiative - Labour
Fire Protection Engineering
Services Fees		 (O) Financial Administration Act 60 3,400 60 3,500 60 3,600
Total External Charging 2,060 6,900 2,160 7,100 2,260 7,300
a. Regulatory (R) or Other Products and Services (O).
b. The Labour Program will review its performance standards with the goal of presenting this information in its next Departmental Performance Report.
c. The Labour Program will present performance results once performance standards have been established.

 

Details on Transfer Payments

Human Resources and Skills Development Canada (HRSDC) has a substantial number of transfer payment programs. These support individuals, communities, labour, other orders of government and Aboriginal organizations in the achievement of shared human development goals. HRSDC is subject to the revised Treasury Board policy on Transfer Payments, which was introduced on June 1, 2000. That policy requires departments to report on those transfer payment programs that are worth at least $5 million. In so doing, the department is helping to demonstrate sound management of, and accountability for, the department's transfer payments.

Consistent with this policy, descriptive material on each program funded from the Consolidated Revenue Fund, including stated objectives, expected results and outcomes, and milestones for achievement has been developed. The following table provides a list of the active transfer payments programs. A fact sheet for each program over $5 million is also provided.

Actual figures reflect program costs and exclude operating resources necessary to deliver the programs.

Non-Statutory Transfer Payments by Business Line
(2003-2004 Actual: $762.5 million)
Associated Programs (Terms and Conditions)
GRANTS Actual For more details, see
Employment Programs
Grants to individuals, organizations and corporations to assist individuals to improve their employability and to promote employment opportunities by assisting local entrepreneurial development $0.1M Fact Sheet #1
Temporary Fisheries Income Program $8.0M Fact Sheet #2
Class grant related to Severe Acute Respiratory Syndrome $0.6M  
Named Grants to the Organization For Economic Co-Operation and Development $0.1M  
Learning
Grants to voluntary sectors, professional organizations, universities and post-secondary institutions and to provincial and territorial governments for literacy $28.0M  
- National Literacy Program   Fact Sheet #3
Homelessness
Grants to not-for-profit organizations, individuals, municipal governments, Band/tribal councils and other Aboriginal organizations, public health and educational institutions, Régies régionales, for-profit enterprises, research organizations and research institutes to carry out research on homelessness to help communities better understand and more effectively address homelessness issues $0.2M Fact Sheet #4
Labour Program
Canadian Joint Fire Prevention Publicity Committee ($7,000) $0.0M  
Fire Prevention Canada ($19,000) $0.0M  
To support activities which contribute to occupational safety and health program objectives ($15,000) $0.0M  
To support Standards-writing associations ($9,720) $0.0M  
Grants to international and domestic organizations for technical assistance and international cooperation on labour issues ($75,000) $0.1M  
Policy, Program and Service Delivery Support
Grant to the Canadian Council on Learning $85.0M Fact Sheet #5
CONTRIBUTIONS Actual For more details, see
Employment Programs
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market. $486.4M  
- Youth Employment Strategy   Fact Sheet #1
- Aboriginal Human Resources Development Strategy   Fact Sheet #6
- Older Workers Pilot Projects   Fact Sheet #8
- Aboriginal Skills and Employment Partnership (ASEP) program and Voisey's Bay   Fact Sheet #9
Workplace Skills
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market $14.0M  
- Sector Council Program   Fact Sheet #7
Learning
Contributions to organizations, provinces, territories, municipalities, post-secondary institutions and individuals to encourage and support initiatives which will contribute to the development of a more results-oriented, accessible, relevant and accountable learning system $3.4M  
Contributions to organizations, provinces, territories, municipalities, post-secondary institutions and individuals to encourage and support initiatives with respect to the development, application, use and diffusion of new learning and training technologies (Office of Learning Technologies) $1.8M  
Contributions to voluntary sectors, professional organizations, universities and post-secondary institutions and to provincial and territorial governments for literacy $1.9M Fact Sheet #3
Labour Program
Labour-Management Partnerships Program $1.0M  
Labour Commission $0.8M  
Homelessness
Homelessness - Contributions to provinces, territories, municipalities, other public bodies, organizations, community groups, employers and individuals to support activities to help alleviate and prevent homelessness across Canada $119.6M Fact Sheet #4
Contributions to not-for-profit organizations, individuals, municipal governments, Band/tribal councils and other Aboriginal organizations, public health and educational institutions, Régies régionales, for-profit enterprises, research organizations and research institutes to support activities to help alleviate and prevent homelessness across Canada and to carry out research on homelessness to help communities better understand and more effectively address homelessness issues $10.1M Fact Sheet #4
Policy, Program and Service Delivery Support
Payments to provinces, territories, municipalities, other public bodies, organizations, groups, communities, employers and individuals for the provision of training and/or work experience, the mobilization of community resources, and human resource planning and adjustment measures necessary for the efficient functioning of the Canadian labour market. $1.4M  

FACT SHEET #1

Youth Employment Strategy
(2003-2004 Actual Spending: $202.5 million)
Objectives The Youth Employment Strategy (YES) is the Government of Canada's commitment to help young people, particularly those facing barriers to employment, get the information and gain the skills, work experience and abilities they need to make a successful transition to the workplace.
Results and Outcomes HRSDC's YES assisted 74,902 young Canadians (this includes 69,150 new starts and 5,752 who continued to receive service from the previous year), of whom 7,742 became employed or self-employed and approximately 51,754 youth and students returned to school.
Partners YES programs are delivered through the collective efforts of 14 federal departments and agencies with HRSDC in the lead role: Agriculture and Agri Food Canada; Canadian Food Inspection Agency; Canadian Heritage; Canadian International Development Agency; Canadian Mortgage and Housing Corporation; Department of Fisheries and Oceans; Department of Foreign Affairs and International Trade; Environment Canada; Indian and Northern Affairs Canada; Industry Canada; National Research Council Canada; Natural Resources Canada; Parks Canada.
Milestones for Achievement:
Renewal Date March 2008  
Evaluation Performed (on previous programs) 1997: Summer Career Placements Summative Evaluation.
1998-1999: Youth Service Canada Summative Evaluation.
Youth Employment Strategy: A Formative Evaluation of Youth Internship Canada and Other HRDC Youth Initiatives.
Interdepartmental Evaluation of the YES.
2000-2001: A Synthesis Report:
  • Youth Service Canada Evaluation (Longitudinal Study).
  • Summative Evaluation of HRDC's Youth Internship Programs under the Youth Employment Strategy.
  • YES Interdepartmental Evaluation Phase I.
2001-2002: A Synthesis Report:
  • Youth Internship Canada Program Evaluation Phases II and III.
  • YES Interdepartmental Evaluation Phase II (consolidates YES with other federal youth programs).
2003-2004: Detailed design of Formative Interdepartmental evaluation of YES
Evaluation Scheduled 2004-2005 Conduct Formative YES evaluation
2007-2008 Undertake Interdepartmental Summative Evaluation

Monthly Cash Disbursement graph

FACT SHEET #2

Temporary Fisheries Income Program
(2003-2004 Actual Spending: $8.0 million)
Objectives The Temporary Fisheries Income Program (TFIP) initiative provided temporary income support, in the form of a grant, to fishers and fish plant workers who had been significantly affected by cod and crab stock closures. The grant was intended to bridge the gap between the exhaustion of the affected individuals' Employment Insurance benefits and the implementation of short-term job creation projects administered by the Atlantic Canada Opportunities Agency and Canada Economic Development for Quebec Regions.

The program provided short-term financial assistance to affected fishers and fish plant workers who, without the assistance, would have been likely to experience hardship as a result of the fishery closures.
Results and Outcomes A total of 2,702 clients received assistance. The grant amount was the lesser of the previous Employment Insurance benefit rate of eligible individuals or $325 per week, to a maximum of $3,900.
Partners HRSDC worked with the Atlantic Canada Opportunities Agency (ACOA), Canada Economic Development for Quebec Regions (CED Q), the Department of Fisheries and Oceans (DFO) and the provinces to maximize effort to assist affected workers and communities.
Milestones for Achievement:
Renewal Date Program ended September 6, 2003

The TFIP initiative was approved for a 19-week period beginning April 27, 2003 and ending September 6, 2003.
Evaluation Performed None
Evaluation Scheduled An evaluation of the program is underway and will be completed in 2004 2005.

Monthly Cash Disbursement graph

FACT SHEET #3

National Literacy Program
(2003-2004 Actual: $29.9 million)
Objectives
  • To increase literacy opportunities and take-up, so that people improve their literacy skills.
  • To work towards making Canada's social, economic and political life more accessible to those with weak literacy skills.
Planned Results
  • Increased public awareness and understanding of literacy issues
  • Improved information sharing and co-ordination
  • Increased evidence base and gap identification
  • Enhanced capacity of Secretariat partners to address literacy issues
  • The integration of literacy and plain language considerations into related policy and institutional life
  • More literacy opportunities for Canadians with low literacy skills
Partnerships
  • Provinces and territories, non-governmental organizations, business, labour, voluntary sector, other government departments
Actual Results
  • Support of literacy projects, through grants and contributions that improve the capacity of Canadian organizations to deliver literacy programs that lead to an increase of literacy opportunities for all Canadians with low literacy skills.
  • Partnership approach with Stakeholders which supports a more strategic use of resources dedicated to literacy.
Milestones for Achievement:
Renewal Date March 31, 2005
Develop Evaluation Framework To be completed by September, 2004
Evaluation Performed Evaluation Report completed January 2003
Evaluation Scheduled Formative in 2005-2006; Summative in 2007-2008

Monthly Cash Disbursement graph

FACT SHEET #4

National Homelessness Initiative (NHI)
(2003-2004 Actual: $129.9 million)
Objectives Original Initiative:

  • To lessen the hardship of people who are homeless by increasing services, for example by providing additional shelter space or more alternative housing for longer-term shelter residents;
  • To promote a coordinated series of programs and initiatives aimed at reducing homelessness;
  • To strengthen the capacity of communities by bringing local service providers together to develop plans that address individual needs in a seamless and coordinated fashion;
  • To promote broad-based partnerships among all stakeholders (private, non-profit, volunteer and labour organizations, the general public and all levels of government) to address homelessness at a community level;
  • To develop a base of information and knowledge about homelessness and share it among all concerned parties and with the general public.

Extended Initiative:

  • To develop a comprehensive continuum of supports to help homeless Canadians move out of the cycle of homelessness and prevent those at-risk from falling into homelessness by providing communities with the tools to develop a range of interventions to stabilize the living arrangements of homeless individuals and families - encouraging self-sufficiency where possible - and prevent those from falling into homelessness.
  • To ensure sustainable capacity of communities to address homelessness by enhancing community leadership and broadening ownership, by the public, non-profit and private sectors, on the issue of homelessness in Canada.
Planned Results Original Initiative:
  • Sustained engagement on homelessness by all sectors of society
  • More comprehensive continuum of supports in place
  • Alleviation of the hardship of homeless people

Extended Initiative:
  • Increased local capacity and resources to deal with homelessness; Projects and partnerships undertaken by communities to improve services and facilities for homeless people (from emergency to prevention); Improved and more inclusive decision-making around investments; Enhanced community ownership of process and solutions; Increased awareness of the nature of homelessness and effective responses.
  • Enhanced access to information; Improved information and data on the homeless population and homelessness issues; More comparative research; Increased application, sharing and exchange of knowledge, and best practices.
  • Coordinated response between sectors to address homelessness; Inclusion of homelessness in policy options at all levels of government; Broader range of partnerships; Cooperation among federal departments in addressing homelessness.
Milestones for Achievement:
Renewal Date A three-year extension of the NHI was announced in the February 2003 Budget.
Evaluation Performed
  • Formative Evaluation (completed in 2002-2003);
  • Community Plan Assessments (completed September 2003).
Evaluation Scheduled Summative Evaluation (to assess the longer-term impact of the Initiative) to be completed by March 2006.

Monthly Cash Disbursement graph

FACT SHEET #5

Grant to the Canadian Council on Learning
(2003-2004 Actual: $85 million)
Objectives To promote and support evidence-based decision making in all areas of lifelong learning by informing Canadians regularly on Canada's progress on learning outcomes, and promoting knowledge and information exchange among learning partners.
Expected Results and Outcomes
  • An integrated pan-Canadian set of indicators for reporting on outcomes across the continuum of lifelong learning.
  • Improved data and information on learning to address learning priorities.
  • Improved evidence-based decision making by users of learning information, including individual Canadians and learning system administrators, and improved learning outcomes for Canadians.
  • Strengthened collaboration amongst organizations involved in learning information across Canada, greater use of effective practices by learning system decision makers and improved access to data and information.
Renewal Date n/a
Evaluation Performed n/a
Evaluation Scheduled
  • An independent formative evaluation to be performed within 30 months of the signing of the funding agreement governing the grant.
  • An independent summative evaluation to be performed within 48 months of the signing of the funding agreement governing the grant.

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FACT SHEET #6

Aboriginal Human Resources Development Strategy
(2003-2004 Actual Spending: $260 million) a
Objectives To support Aboriginal organizations to develop and implement labour market, youth and child care programs that are designed to address the local and regional needs of Aboriginal people. This programming will:
  • assist Aboriginal individuals to prepare for, obtain and maintain employment, thereby resulting in savings to income support programs;
  • assist Aboriginal youth (a person normally from 15 to 30 years of age) in preparing for, obtaining and maintaining employment and in making a successful transition into the labour market, thereby resulting in increased employment; and
  • increase the supply of quality child care services in First Nations and Inuit communities, thereby raising the availability of distinct and diverse services in these communities to a level comparable to that of the general population.
Results and Outcomesb Assisted 46,106 Aboriginal clients, of whom 21,581 became employed or self-employed, and approximately 7,746 Aboriginal youth returned to school. Additionally, 7,500 child care spaces were supported and occupied.
Partners HRSDC partnerships signed with Aboriginal organizations through 79 Aboriginal Human Resources Development Agreements (AHRDA).
Milestones for Achievement:
Renewal Date April 1, 2005
Evaluation Performed Phase I Review of the AHRDS is due to be released in December 2004. This Review examined the Aboriginal Human Resources Development Agreements in year four of their five-year mandate (1999-2004). The scope of the Review covered AHRDS planning activities, partnerships, horizontal management and capacity-building.
Evaluation Scheduled HRSDC, working closely with its partners, plans to carry out further review and evaluation of the Aboriginal Human Resources Development Agreements in future, with the objective of developing a more comprehensive perspective on results achieved and lessons learned. Work on Phase II of the Review is planned to begin in the fall of 2004.
a. Does not include $97.6 million from Employment Insurance Act Part II.
b. These results and outcomes are based on total program funding through the Consolidated Revenue Fund (CRF) and Employment Insurance Part II. Specific results derived from the CRF only are unavailable.

Monthly Cash Disbursement graph

FACT SHEET #7

Sector Council Program
(2003-2004 Actual: $14.0 million)
Objectives The ultimate goal of Sector Council Program is two-pronged; the Program will continue to build on current partnerships and establish new relationships towards:
  • ensuring that Canadians have access to, and can obtain the skills and knowledge required to participate in an ever-changing, skills-oriented labour market; and
  • developing/fostering an efficient and effective functioning labour market in targeted sectors of the Canadian economy.

The Program remains focused on working towards the achievement of four broad, long-range objectives:
  • Increased industry learning and skills development;
  • More informed and responsive learning system to industry needs;
  • Enhanced ability of industry to recruit, retain and address human resources issues; and
  • Reduced barriers to labour mobility.
Planned Results The Sector Council Program will continue to build on current partnerships with Sector Councils toward the achievement of the following objectives in the short term:
  • Enhanced collaboration, action and investment by industry
  • Increased consensus and understanding of skills, occupational needs and labour market issues
  • Increased availability and use of products and services to help industry address their human resources issues
  • Increased availability of products and mechanisms to facilitate labour market entry and career progression
Partnerships The Sector Council Program achieves results through sector councils (comprising of representatives from business, labour, education, government and other professional groups)
Milestones for Achievement:
Renewal Date March 2007
Evaluation Performed No formal evaluation as of this date.
Evaluation Scheduled The formative evaluation of the Sector Council Program is commencing and is expected to be completed by December 2006. Interim reports are anticipated August 2005 and March 2006.
Summative Evaluation of Sector Partnerships in 2006-2007.

Monthly Cash Disbursement graph

FACT SHEET #8

Older Workers Pilot Projects
(2003-2004 Actual: $11.9 million)
Objectives To support innovative pilot projects designed to re-integrate displaced older workers into sustainable employment, or maintain in employment older workers threatened with displacement. This objective supports HRSDC's human resources investment priorities aimed at helping clientele with particular labour market needs and issues, broadening partnerships to enhance and integrate programming, and focusing on prevention.
Results and Outcomes
  • HRSDC approved a total of 34 new projects for 2003-2004, and 26 projects were approved to continue pilot activities.
  • As a result, approximately 5,896 older workers were assisted through continued pilot activities while approximately 1,833 older workers were assisted through new pilot projects.
Partners The OWPPI is a federal-provincial/territorial initiative.
Provincial and territorial governments include: Government of Newfoundland and Labrador; Government of Nova Scotia; Government of Prince Edward Island; Government of New Brunswick; Government of Quebec; Government of Manitoba; Government of Saskatchewan; Government of British Columbia; Government of the Yukon*; Government of the Northwest Territories; Government of Nunavut*.
*Yukon and Nunavut decided not to participate in 2003-2004.
(Ontario and Alberta decided not to participate in the Initiative.)
Milestones for Achievement:
Renewal Date Program to end on May 30, 2005.
Evaluation Performed Evaluations of pilot projects that ended on or before March 31, 2004 are ongoing, with some evaluations nearing completion.
For projects undertaken during the 2004-2005 fiscal year, each participating jurisdiction is asked to submit to HRSDC two employment outcome reports. The first report will consist of a 30-day follow-up survey; the second report will consist of a 12-month follow-up survey. These results will supplement the overall evaluation.
Evaluation Scheduled Final evaluations for projects that ended on or before March 31, 2004, to be received by HRSDC by March 31, 2005.
30-day follow-up survey to be received by HRSDC by May 15, 2005. In the case of Quebec, a 12-week follow-up survey is to be received by HRSDC by August 31, 2005.
12-month follow-up survey to be received by HRSDC by April 30, 2006.

Monthly Cash Disbursement graph

FACT SHEET #9

Aboriginal Skills and Employment Partnerships (ASEP) and Voisey's Bay
(2003-2004 Actual Spending: $7.4 million)
Objectives
  • The overall objective of the ASEP initiative is to achieve sustainable employment for Aboriginal people leading to lasting benefits for Aboriginal communities, families and individuals.
  • The initiative aims to promote maximum employment for Aboriginal people on major economic developments through a collaborative partnership approach.
  • The Voisey's Bay initiative will provide Aboriginal people with the skills needed to take advantage of employment opportunities at the mine as well as opportunities related to any spin off activities.
Results and Outcomes Results for the Voisey's Bay project:
  • 1,031 Aboriginal clients assessed for participation.
  • 77 clients enrolled in training.
  • 601 Aboriginal people were employed at the construction site 2003-2004; with 385 of those assisted through JETA wage subsidy program.
  • Overall there were 704 client interventions started with 521 interventions completed.
  • JETA also offered career/retention services and pre-employment training to clients.
Partners HRSDC is working with provincial and territorial governments, industry, Aboriginal groups and other organizations to help develop the partnerships required to access ASEP funding.
As a pilot for ASEP, HRSDC has helped develop a partnership between the Voisey's Bay Nickel Company, the Innu Nation, the Labrador Inuit Association, the Labrador Metis Nation and the Province of Newfoundland and Labrador for the implementation of programs and services to prepare Aboriginal people for long term jobs associated with the Voisey's Bay project. These groups have established a partnership entitled the Joint Voisey's Bay Employment and Training Authority (JETA).
Milestones for Achievement:
Renewal Date Currently not applicable
Evaluation Performed None to date
Evaluation Scheduled Each ASEP project will have an evaluation framework, clearly outlining how HRSDC will evaluate the project, including the data that needs to be collected and the timelines for reporting on the data. It should be noted that evaluation work on ASEP projects will be scheduled in relation to their respective dates of commencement.

The evaluation methodology will consist of environmental scans of communities and collection of baseline data at the start-up of each ASEP project, on-going review of ASEP monitoring data, surveys of ASEP clients, project and community case studies, informant interviews and focus groups.

Annual interim reports are planned to be completed in year 2005-2006. The final synthesis report on evaluation findings from ASEP projects will be completed in 2008. Project and community case studies will be completed at the end of the 2nd and 4th year of the program, with a formative evaluation scheduled in the program's 2nd year (2005-2006) and the summative evaluation in the final year (2006-2007).

The evaluation process for Voisey's Bay, which is the pilot project for the ASEP, is already underway in partnership with the Joint Voisey's Bay Employment and Training Authority (JETA). A Memorandum of Understanding between HRSDC and JETA has been signed, outlining the evaluation framework. HRSDC entered into a contribution agreement with JETA in 2003 to deliver programming to assist the Aboriginal people of Labrador to obtain long-term employment at the Voisey's Mine/Mill site when it is operational in 2006.

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Foundations (Conditional Grants)

Frontier College Learning Foundation
Purpose of the Foundation
Frontier College Learning Foundation provides financial support for the work of Frontier College. Frontier College is a Canada-wide, volunteer-based, literacy organization which teaches people to read and write and nurtures an environment favourable to lifelong learning. It reaches out to people wherever they are and responds to their particular learning needs.
Amount and Timing of Funding Provided Projected Use of Funds Expected Results Actual Results
$12 million on March 31, 2000. The endowment assists Frontier College to increase the number of university chapters, the number of student tutors and the establishment of tutor-training partnerships with national youth-servicing agencies in Canada. The endowment is expected to result in the growth of Frontier College's presence and services across Canada, which in turn results in increased access to its program. The project is based on a 5 year agreement. As such, final results are not available yet. However, based on the 2003 yearly report, the endowment resulted in:
  • the ability to staff the English as a Second Language program;
  • support for the work of the family literacy co-ordinator in his efforts to assist families in their learning activities through book donations;
  • more effective professional development and networking opportunities for volunteers and parents running reading circles;
  • support for the work of the Homework Club co-ordinators in their efforts to maintain community homework clubs; and
  • support for the recruitment, training and placement of labourer-teachers in rural BC, Manitoba and Quebec where marginalized migrant workers are tutored.

The Foundation also continued its efforts in the campaign to raise funds to build the endowment fund.

 

Peter Gzowski Foundation for Literacy

Peter Gzowski Foundation for Literacy
Purpose of the Foundation
The purpose of this foundation is to provide one-time funding and a vehicle for corporations and private citizens, who supported Peter Gzowski's work in literacy, to make donations in his name.
Amount and Timing of Funding Provided Projected Use of Funds Expected Results Actual Results
$5 million on March 31, 2003. Literacy activities which support the national coordination of the Peter Gzowski Invitational (PGI) Golf Tournament for Literacy

Literacy activities which support the raising of funds and public awareness for literacy at the local level

Literacy activities that support the promotion of literacy and leverage funds for literacy throughout Canada.
  • Increased public awareness of, and support for, literacy issues
  • Leveraged funds
  • Promotion of literacy and its importance
  • Progress has been made through the PGI Golf Tournament for Literacy with $637,289 in revenues raised in 2003-2004 (through 15 PGI's); PGI remains the largest fundraiser and awareness raiser for literacy in Canada; and after 18 years in operation, PGI continues to increase revenues and decrease costs. With the funding support, all raised funds were put into local literacy programs

 

The Canada Millennium Scholarship Foundation
The Budget Implementation Act, 1998, provides for the creation of the Canada Millennium Scholarship Foundation. The Act establishes that the Minister of Human Resources Development Canada (which has become Human Resources and Skills Development Canada) is responsible for tabling Foundation reports to Parliament, including the Foundation's annual report.

The endowment is managed in accordance with the Funding Agreement between the Foundation and the Government of Canada, as represented by the Ministers of Finance and Human Resources Development Canada (which has become Human Resources and Skills Development Canada). For further information on the Foundation, see www.millenniumscholarships.ca.
Purpose of the Foundation
To increase access to post-secondary education by granting scholarships to students who are in financial need and who demonstrate merit.
Amount and Timing of Funding Provided Projected Use of Funds Expected Results Actual Results
Created in 1998 as an autonomous body with a $2.5 billion endowment to administer scholarships to students for a period of ten years, starting in the year 2000. Annually award bursaries averaging $3,000 to post-secondary students based on financial need. Approximately 90,000 students with demonstrated financial need benefit from millennium bursaries annually. Distributed 94,256 bursaries totalling $288,791,277 in payments to students.
Distribute annual millennium entrance excellence awards, valued at $4,000 or $5,000 depending on the type of award, to students beginning post-secondary studies for the first time who demonstrate exceptional merit. Over 900 post-secondary students benefit from millennium entrance excellence awards annually. 916 entrance award laureates received entrance excellence awards.
Beginning in September 2003, distribute annual national in-course excellence awards, valued at $4,000 or $5,000 depending on the type of award, to upper-year post-secondary students. Starting in 2003, up to 1,200 post-secondary students benefit from annual national in-course excellence awards. 822 students received in-course entrance awards.
Undertake a research program into the determinants of access to higher education and the effect of current student financial assistance programs on students' behaviour. Improve access to post-secondary education so that Canadians can acquire the skills needed to participate in a changing economy and society. 8 research studies were published in 2003.
Note: Among other findings, a mid-term evaluation conducted in 2003 suggested that the current delivery agreements that the Foundation has with most provinces could be changed to improve post-secondary access. In most provinces, grant recipients receive the grant plus a student loan, the value of which has been reduced by the value of the grant - thus, the total amount of funds that students receive is equal only to the value of the loan before it was reduced. The evaluation argues that in order to improve access, students should be provided with more overall funding - they should receive their grant plus the full value of their student loan. The Foundation stated in its Annual Report that on-going research and stakeholder consultations are being used to address this and other issues raised in the evaluation.

Introduction to Specified Purpose Accounts

Specified Purpose Accounts (SPA) are special categories of revenues and expenditures. They report transactions of certain accounts where enabling legislation requires that revenues be earmarked and that related payments and expenditures be charged against such revenues. The transactions of these accounts are to be accounted for separately.

HRSDC is responsible for the stewardship of three such accounts:

  • the Employment Insurance (EI) Account;
  • the Government Annuities Account; and
  • the Civil Service Insurance Fund.

The EI Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. Consolidated SPAs are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties but, in essence, constitute Government revenues and expenditures.

The Government Annuities Account is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Government Annuities Act, and modified by the Government Annuities Improvement Act, which discontinued sales of annuities in 1975. The account is valued on an actuarial basis each year, with the deficit or surplus charged or credited to the Consolidated Revenue Fund.

The Civil Service Insurance Fund is a consolidated SPA and is included in the financial reporting of the Government of Canada. It was established by the Civil Service Insurance Act. Pursuant to subsection 16(3) of the Civil Service Insurance Regulations, the amount of actuarial deficits is transferred from the Consolidated Revenue Fund to the Civil Service Insurance Account in order to balance the assets and liabilities of the program.

The following information updates forecasted data on the EI Account that was provided in the 2003-2004 Report on Plans and Priorities.31 That report presented multi-year financial data and general information. Additional information on performance and year-end data is available at the Internet addresses provided in this section.

Employment Insurance Account

The table below summarizes the financial results for the Employment Insurance (EI) Account from 2001-2002 to 2003-2004. In 2002-2003, the Government of Canada changed its basis of accounting from the modified accrual accounting to the full accrual basis of accounting. This change in accounting policy has been applied retroactively and the financial statements have been restated accordingly.

EI Account — Statement of Operations and Accumulated Surplusa
(millions of dollars) 2001-2002 2002-2003 2003-2004
Actual Actual Forecast b Actual
Revenue
Premiums 18,000 18,243 17,887 17,900
Penalties 65 71 72 47
Interest 1,087 1,055 1,181 1,125
Total Revenue 19,152 19,369 19,140 19,072
Expenditures
Benefits 13,694 14,501 15,505 15,070
Administrative Costs 1,476 1,519 1,571 1,521
Doubtful Accounts c 73 81 84 60
Total Expenditures 15,243 16,101 17,160 16,651
Surplus
Current Year 3,909 3,268 1,980 2,421
Cumulative 40,544 43,812 45,792 46,233
Premium Rate 2001 2002 2003 2004
(% of Insurable Earnings)
Employee 2.25% 2.20% 2.10% 1.98%
Employer 3.15% 3.08% 2.94% 2.77%
a. The EI Account is a consolidated Specified Purpose Account (SPA) and is included in the financial reporting of the Government of Canada. Consolidated SPAs are used principally where the activities are similar in nature to departmental activities and the transactions do not represent liabilities to third parties but, in essence, constitute government revenues and expenditures.
b. The forecasts for 2003-2004 were presented in the 2004-2005 Report on Plans and Priorities and have not been restated.
c. Represents the write-offs and estimates of uncollectible account receivables for benefit overpayments and penalties imposed.

Benefits rose in 2003-2004 mainly due to an increase in the number of beneficiaries, the result of a higher level of unemployment rate, accompanied by a higher average benefit rate. EI premiums decreased by $343 million mainly due to lower premium rates, which offset the increase in employment and earnings. Interest earned increased, due solely to the rise in the cumulative surplus, as interest rates declined. As total revenue exceeds total expenditure by $2.4 billion, the cumulative EI surplus is $46.2 billion as of March 31, 2004.

More detailed information is reported in the 2003-2004 audited EI Account financial statements that are included in the 2004 Public Accounts of Canada, Volume 1, Section 4.32 HRSDC also offers a website dedicated to Employment Insurance.33 It provides information on the authority, objectives and details of the program as well as linkages to the Actuarial Reports and Monitoring and Assessment Reports.

Government Annuities Account

The table below summarizes the financial results for the Government Annuities Account from 2001-2002 to 2003-2004.

Government Annuities Account - Receipts and Disbursements
(millions of dollars) Actual
2001-2002 2002-2003 2003-2004
Actuarial Liabilities —
Balance at Beginning of Year 507.8 471.4 437.6
Income 33.3 30.8 28.5
Payments and Other Charges 65.2 61.3 57.8
Excess of Payments and Other Charges Over Income for the Year 31.9 30.5 29.3
Actuarial Surplus 4.5 3.3 2.5
Actuarial Liabilities —
Balance at End of the Year 471.4 437.6 405.8

The annual report and financial statements for Government Annuities are available in the 2004 Public Accounts of Canada, Volume 1, Section 6.34

Civil Service Insurance Fund

The table below summarizes the financial results for the Civil Service Insurance Fund from 2001-2002 to 2003-2004.

Civil Service Insurance Fund - Receipts and Disbursements
(millions of dollars) Actual
2001-2002 2002-2003a 2003-2004
Revenue
Opening Balance 8.0 7.7 7.5
Receipts and Other Credits 0.1 0.3 0.2
Payments and Other Charges 0.4 0.5 0.6
Excess of Payments and Other Charges Over Income for the Year 0.3 0.2 0.4
Balance at End of the Year 7.7 7.5 7.1
a. The receipts and other credits in 2002-2003 were increased to account for the balancing credit of $0.1 as of March 31, 2003 that was made.

The annual report and financial statements for the Civil Service Insurance Fund are available in the 2004 Public Accounts of Canada, Volume 1, Section 6.35

Statutory Annual Reports

Canada Student Loans Program

In August 2000, the Canada Student Loans Program (CSLP) was shifted from the risk-shared financing arrangements that had been in place with financial institutions between 1995 and July 2000 to a direct student loan financing plan.36

This meant that the Program had to redesign the delivery mechanism in order to directly finance student loans. In the new arrangement, the Government of Canada provides the necessary funding to students and two service providers have contracts to administer the loans.

It also meant that the Program had to enter into interim contracts with the former risk-shared loan lenders in order to ensure uninterrupted delivery of federal student financial assistance until the Direct Loans program could be fully implemented. These contracts ended February 28, 2001.

Reporting Entity

The entity detailed in this report is the Canada Student Loans Program only and does not include departmental operations related to the delivery of the CSLP. Expenditures in the figures are primarily statutory in nature, made under the authority of the Canada Student Loans Act and the Canada Student Financial Assistance Act.

Basis of Accounting

The financial figures are prepared in accordance with accounting policies and concepts generally accepted in Canada and as reflected in the Public Sector Accounting Handbook of the Canadian Institute of Chartered Accountants.

Specific Accounting Policies

Revenues

Two sources of revenue are reported: interest revenue on Direct Loans and recoveries on Guaranteed and Put Back Loans. Government accounting practices require that recoveries from both sources be credited to the government's Consolidated Revenue Fund. They do not appear along with the expenditures in the CSLP accounts, but are reported separately in the financial statements of Human Resources and Skills Development Canada (HRSDC) and the Government.

  • Interest Revenue on Direct Loans — Student borrowers are required to pay simple interest on their part-time student loans and on their full-time loan, but only when they leave full-time studies. Students have the option of selecting a variable (prime + 2.5%) or fixed (prime + 5%) interest rate. The amounts in the figures represent the interest accrued on the outstanding balance of the government-owned Direct Loans. Borrowers continue to pay the interest accruing on the guaranteed and risk-shared loans directly to the private lender holding these loans.
  • Recoveries on Guaranteed Loans — The government reimburses the private lenders for any loans issued prior to August 1, 1995 that go into default (i.e., lenders claim any amount of principal and interest not repaid in full). The amounts in the figures represent the recovery of principal and interest on these defaulted loans.
  • Recoveries on Put-back Loans — Under the risk-shared agreements, the government will purchase from the participating financial institutions any loans issued between August 1, 1995 to July 31, 2000 that are in default of payments for at least 12 months after the period of study, that in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The recoveries amounts in the figures represent the recovery of principal and interest on these loans.

Canada Study Grants

Canada Study Grants improve access to post-secondary education by providing non-repayable financial assistance to post-secondary students with particularly high levels of need. Five types of grants are available to assist: (1) students with permanent disabilities in order to meet disability-related educational expenses (up to $8,000 annually); (2) students with dependants (up to $3,120annually); (3) high-need part-time students (up to $1,200 annually); (4) women in certain fields of Ph.D. studies (up to $3,000 annually for up to three years); and (5) high-need students with permanent disabilities (up to $2,000 annually).

Collection Costs

These amounts represent the cost of using private collection agencies to collect defaulted Canada Student Loans. The loans being collected include: risk-shared and guaranteed loans that have gone into default and for which the government has reimbursed the private lender; and Direct Loans issued after July 31, 2000, that are returned to HRSDC by the third party service provider as having defaulted.

Interim Arrangements

As noted in the introduction to this section, interim contracts were entered into with the former risk-shared loan lenders to disburse full-time Direct Loans on the government's behalf until February 28, 2001. At that time, the government reimbursed the lenders 85% of the loan principal they had advanced during the interim period. The remaining 15% was reimbursed to the lenders later. These contracts also called for remuneration in the form of transaction fees and the interest on funds advanced on behalf of the government. Another contract was entered into with Canada Post for the delivery of Direct Loans to part-time students. The Interest Cost to Financial Institutions (Interim) and Transition fees to Financial Institutions (Interim) items identify the cost of these interim arrangements.

  • Interest Cost to Financial Institutions (Interim) — This expense represents the interest costs, calculated at prime, paid by CSLP on a monthly basis to the lending institutions on the outstanding advances made to full-time students with Direct Loans.
  • Transition Fees to Financial Institutions (Interim) — This expense represents the cost of transaction fees paid by CSLP during the interim period for each fully completed full-time loan made to the student by the participating lending institutions. Transition fees also include payments made to Canada Post for each fully completed part-time loan made during the interim period. The cost is calculated on the basis of certificates of eligibility negotiated by the student.

Service Bureau Costs

As of March 1, 2001, CSLP uses third party service providers to administer Direct Loans disbursement, in-study loan management and post-studies repayment activities. This item represents the cost associated with these contracted services.

Risk Premium

Risk premium represents part of the remuneration offered to lending institutions participating in the risk-shared program from August 1, 1995 to July 31, 2000. The risk premium was 5% of the value of loans being consolidated (normally the value of loans issued to students), being calculated and paid at the time students leave studies and go into repayment. In return, the lenders assumed risk associated with non-repayment of these loans.

Put-Back

Subject to the provisions of the contracts with lending institutions, the government will purchase from a lender the student loans that are in default of payment for at least 12 months and that, in aggregate, do not exceed 3% of the average monthly balance of the lender's outstanding student loans in repayments. The amount paid is set at 5% of the value of the loans in question. The figures also include any refund made to participating financial institutions on the recoveries.

Administrative Fees to Provinces and Territories

Pursuant to the Canada Student Financial Assistance Act (CSFAA), the government has entered into arrangements with participating provinces and Yukon Territory to facilitate the administration of the CSLP. They administer the application and needs assessment activities associated with federal student financial assistance and in return they are paid an administrative fee.

In-Study Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the department of Finance's general financing activities. The cost of borrowing this capital is recorded in the department of Finance's overall financing operations. The figures represent the cost attributed to CSLP in support of Direct Loans while students are considered in study status.

In Repayment Interest Borrowing Expense

The capital needed to issue the Direct Loans is raised through the department of Finance's general financing activities. The cost of borrowing this capital is recorded in the department of Finance's overall financing operations. The figures represent the cost attributed to CSLP while students are in repayment of their Canada Student Loans.

In-Study Interest Subsidy

A central feature of federal student assistance is that student borrowers are not required to pay the interest on their student loans as long as they are in full-time study and, in the case of loans negotiated prior to August 1, 1993, for six months after the completion of studies. Under the guaranteed and risk-shared programs, the Government paid the interest to the lending institutions on behalf of the student.

Interest Relief

Assistance may be provided to cover loan interest for up to 54 months for borrowers who have difficulty repaying their loans. The shift from Guaranteed and Risk-Shared Loans to Direct Loans did not alter interest relief for loans in distress from the borrower's perspective; however, the method of recording associated costs changed. For loans issued prior to August 1, 2000, CSLP compensates lending institutions for lost interest equal to the accrued interest amount on loans under interest relief. For loans issued after August 1, 2000, an interest relief expense is recorded to offset the accrued interest on direct loans.

Debt Reduction in Repayment

Debt Reduction in Repayment (DRR) assists borrowers in severe financial hardship. DRR is a federal repayment assistance program through which the Government of Canada reduces a qualifying student's outstanding Canada Student Loans principal to an affordable amount after all other interest relief measures are exhausted. The maximum amount of the reduction is $10,000 or 50% of the loan principal, whichever is less. For loans issued prior to August 1, 2000, CSLP pays the lending institutions the amount of student debt principal reduced by the Government of Canada under DRR. For loans issued after August 1, 2000, the Government of Canada forgives a portion of the loan principal.

Claims Paid and Loans Forgiven

From the beginning of the program in 1964 until July 31, 1995, the Government fully guaranteed all loans issued to students by private lenders. The Government reimburses private lenders for any of these loans that go into default (i.e., lenders claim any amount of principal and interest not repaid in full, after which the department of Social Development Canada's Collection Services will attempt to recover these amounts).37 The risk-shared arrangements also permitted loans issued from August 1, 1995 to July 31, 2000 to be guaranteed under specific circumstances. This item represents the costs associated with loan guarantees.

Pursuant to the Canada Student Loans Act and the Canada Student Financial Assistance Act, the government incurs the full amount of the unpaid principal plus accrued interest in the event of the death of the borrower or if the borrower becomes permanently disabled and cannot repay the loan without undue hardship.

Bad Debt Expense

Under Direct Loans, the government owns the loans issued to students and must record them as assets. As a result, Generally Accepted Accounting Principles require a provision be made for potential future losses associated with these loans. The provision must be made in the year the loans are issued even though the losses may occur many years later. The figures represent the annual expense against the provisions for Bad Debt and Debt Reduction in Repayment on Direct Loans.

Alternative Payments to Non-participating Provinces

Provinces and territories may choose not to participate in the CSLP. These provinces and territories receive an alternative payment to assist in the cost of delivering a similar student financial assistance program.

Commitments

As at March 31, 2004, the department had the following commitments for Service Provider contracts: $76.6 million. The current end date for the Service Provider contracts is February 28, 2005.

Table 10: Consolidated Canada Student Loans Program — Combined Programs
(millions of dollars) Actual 2003-2004
2001-2002 2002-2003 Forecast Actual
Revenues
Interest Revenue on Direct Loans 44.2 103.9 145.2 174.3
Recoveries on Guaranteed Loans 123.7 111.1 103.1 91.3
Recoveries on Put-Back Loans 4.2 7.7 8.9 9.6
Total Revenues 172.1 222.7 257.2 275.2
Expenses
Transfer Payments
Canada Study Grants 69.7 54.5 78.2 66.8
Total Transfer Payments 69.7 54.5 78.2 66.8
Loan Administration
Collection Costs 14.3 12.8 13.3 13.4
Interim Arrangements
- Interest Costs to Financial Institutions 13.7 0.0 0.0 0.0
- Transition Fees to Financial Institutions 0.3 0.0 0.0 0.0
Service Bureau Costs 27.9 41.2 61.6 41.0
Risk Premium 51.0 23.0 16.8 11.7
Put-Back 2.7 5.8 7.6 4.3
Administrative Fees to Provinces and Territories 9.0 8.4 9.4 8.8
Total Loan Administration Expenses 118.9 91.3 108.7 79.2
Cost of Government Support
Benefits Provided to Students
In-Study Interest Borrowing Expense (Class A)a 105.7 138.6 148.2 148.6
In Repayment Interest Borrowing Expense (Class B)a 12.7 41.3 86.4 68.1
In-Study Interest Subsidy 77.8 39.8 25.3 27.4
Interest Reliefb 86.5 74.6 77.7 73.8
Debt Reduction in Repayment 4.2 7.4 10.6 10.7
Claims Paid & Loans Forgiven 76.0 40.7 36.4 34.8
Bad Debt Expensec
Debt Reduction in Repayment Expense 10.6 10.8 11.5 11.5
Bad Debt Expense 171.4 175.7 186.0 193.3
Total Cost of Government Support Expenses 544.9 529.0 582.1 568.2
Total Expenses 733.5 674.7 769.0 714.2
Net Operating Results 561.4 451.9 511.8 439.0
Alternative Payments to Non-Participating Provincesd 144.9 76.0 159.0 244.8
Final Operating Results 706.3 527.9 670.8 683.8
a. These costs are related to Canada Student Direct Loans but reported by the Department of Finance.
b. The 2001-2002 and 2002-2003 actuals are restated to reflect the change of valuation accounting method of the Interest Relief allowance.
c. This represents the annual expense against the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. The Bad Debt Expense figure for 2002-2003 has been revised (from $173.8M to $175.7M) to include the expense against the Provision on Outstanding Interest on Impaired Loans, which is in accordance with the Actuarial Report on CSLP.
d. For 2003-2004, the total amount disbursed as Alternative Payments is $160.0M only. Starting in 2003-2004, the corresponding accrual ($84.8M) is now recorded at the departmental level instead, as in the past, being recorded centrally. This change in methodology explains the increase of the expenditure shown for that fiscal year.

 

Table 11: Consolidated Canada Student Loans Program — Risk Shared and Guaranteed Loans Only
(millions of dollars) Actual 2003-2004
2001-2002 2002-2003 Forecast Actual
Revenue
Recoveries on Guaranteed Loans 123.7 111.1 103.1 91.3
Recoveries on Put-Back Loans 4.2 7.7 8.9 9.6
Total Revenues 127.9 118.8 112.0 100.9
Expenses
Transfer Payments
Canada Study Grants N/A N/A N/A N/A
Total Transfer Payments 0.0 0.0 0.0 0.0
Loan Administration
Collection Costs 14.3 12.0 9.9 9.3
Risk Premium 51.0 23.0 16.8 11.7
Put-Back 2.7 5.8 7.6 4.3
Administrative Fees to Provinces and Territories 0.0 0.0 0.0 0.0
Total Loan Administration Expenses 68.0 40.8 34.3 25.3
Cost of Government Support
Benefits Provided to Students
In-Study Interest Subsidy 77.8 39.8 25.3 27.4
Interest Relief 85.6 65.3 54.1 53.8
Debt Reduction in Repayment 4.2 7.4 10.6 10.7
Claims Paid & Loans Forgiven 76.0 40.0 34.8 33.3
Total Cost of Government Support Expenses 243.6 152.6 124.8 125.2
Total Expenses 311.6 193.4 159.1 150.5
Net Statutory Operating Results 183.7 74.6 47.1 49.6
Alternative Payments to Non-Participating Provinces 110.0 0.0 0.0 0.0
Final Statutory Operating Results 293.7 74.6 47.1 49.6

 

Table 12: Consolidated Canada Student Loans Program — Direct Loans Only
(millions of dollars) Actual 2003-2004
2001-2002 2002-2003 Forecast Actual
Revenue
Interest Revenue on Direct Loans 44.2 103.9 145.2 174.3
Total Revenue 44.2 103.9 145.2 174.3
Expenses
Transfer Payments
Canada Study Grants 69.7 54.5 78.2 66.8
Total Transfer Payments 69.7 54.5 78.2 66.8
Loan Administration
Collection Costs 0.0 0.8 3.4 4.1
Interim Arrangements
- Interest Costs to Financial Institutions 13.7 0.0 0.0 0.0
- Transition Fees to Financial Institutions 0.3 0.0 0.0 0.0
Service Bureau Costs 27.9 41.2 61.6 41.0
Administrative Fees to Provinces and Territories 9.0 8.4 9.4 8.8
Total Loan Administration Expenses 50.9 50.5 74.4 53.9
Cost of Government Support
Benefits Provided to Students
In-Study Interest Borrowing Expense (Class A) a 105.7 138.6 148.2 148.6
In Repayment Interest Borrowing Expense (Class B)a 12.7 41.3 86.4 68.1
Interest Relief b 0.9 9.3 23.6 20.0
Claim Payments and Loans Forgiven - 0.7 1.6 1.5
Bad Debt Expense c
Debt Reduction in Repayment Expense 10.6 10.8 11.5 11.5
Bad Debt Expense 171.4 175.7 186.0 193.3
Total Cost of Government Support Expenses 301.3 376.3 457.3 443.0
Total Expenses 421.9 481.3 609.9 563.7
Net Operating Results 377.7 377.4 464.7 389.4
Alternative Payments to Non-Participating Provinces d 34.9 76.0 159.0 244.8
Final Operating Results 412.6 453.4 623.7 634.2
a. These costs are related to Canada Student Direct Loans but reported by the Department of Finance. b. The 2001-2002 and 2002-2003 actuals are restated to reflect the change of valuation accounting method of the Interest Relief allowance. c. This represents the annual expense against the Provisions for Bad Debt and Debt Reduction in Repayment as required under Accrual Accounting. The Bad Debt Expense figure for 2002-2003 has been revised (from $173.8 million to $175.7 million) to include the expense against the Provision on Outstanding Interest on Impaired Loans, which is in accordance with the Actuarial Report on CSLP. d. For 2003-2004, the total amount disbursed as Alternative Payments is $160.0M only. Starting in 2003-2004, the corresponding accrual ($84.8 million) is now recorded at the departmental level instead, as in the past, being recorded centrally. This change in methodology explains the increase of the expenditure shown for that fiscal year.

Other Statutory Annual Reports

Noted below are other statutory annual reports that are consolidated in other segments of this report and/or in the Public Accounts of Canada.

Parts I and III of the Canada Labour Code

These are reported under the Strategic Outcome of "Safe, healthy, fair, stable and cooperative and productive workplaces"

Civil Service Insurance Act

The complete annual report is included in the 2004 Public Accounts of Canada,
Volume 1, Section 6.38 It is also reported on in the Specified Purpose Accounts section of this report.

Government Annuities Act

The complete annual report is included in the 2004 Public Accounts of Canada,
Volume 1, Section 6.39 It is also reported on in the Specified Purpose Accounts section of this report.

Consolidated Reporting

Asset Management

Asset management is being reported by Social Development Canada's Financial and Administrative Services on behalf of HRSDC. Results can therefore be found in Social Development Canada's Departmental Performance Report available on the Treasury Board Secretariat website.40

Procurement and Contracting

Procurement and contracting is being reported by Social Development Canada's Financial and Administrative Services on behalf of HRSDC. Results can therefore be found in Social Development Canada's Departmental Performance Report available on the Treasury Board Secretariat website.41

Regulatory Initiatives

Through Access to Learning, Canadians Can Participate Fully in a Knowledge-Based Economy and Society
Purpose of regulatory initiative Expected results Performance measurement criteria Results achieved
Debt Reduction in Repayment:
Amendments to the Canada Student Financial Assistance Regulations and Canada Student Loans Regulations to improve the Debt Reduction in Repayment measure by increasing the total amount of debt forgiveness available through the measure.		 Improvement to the Debt Reduction in Repayment measure will increase its availability to student loan borrowers facing financial hardship. It would result in reduced loan defaults and collection costs to the Government of Canada. As a result of amended income thresholds to determine eligibility, it is anticipated that the number of borrowers who would be eligible for DRR after exhausting Interest Relief will increase by approximately 80%. This amendment came into effect on May 11, 2004. Results will become available in the next year.
Access to Debt Management Measures:
Amendments to the Canada Student Financial Assistance Regulations and Canada Student Loans Regulations would allow access to Interest Relief for borrowers whose payments are in arrears up to 270 days or who are bankrupt.		 Enhancing access to debt management measures is intended to maximize repayment and minimize default. This would reduce the costs of collection activities on defaulted student loans. It is estimated that the number of borrowers who would benefit from Interest Relief will increase by 6%. This amendment came into effect on May 11, 2004. Results will become available in the next year.
Part-time Student Financial Assistance:
Regulatory changes to improve financial assistance for part-time students.		 Part-time student financial assistance is under review by Federal-provincial and territorial ADM Committee on Student Financial Assistance.    

Safe, Healthy, Fair, Stable, Cooperative and Productive Workplaces

Safe, Healthy, Fair, Stable, Cooperative and Productive Workplaces
Purpose of regulatory initiative Expected results Performance measurement criteria Results achieved
Canada Labour Code, Part II - Canada Occupational Health and Safety Regulations
Prevention of Violence in the Workplace		 This will ensure that measures for the prevention of violence in the workplace are implemented for the protection of all employees under federal jurisdiction.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
  • LA-2000 Non-Compliance Reports
 Proceeding with legal review and drafting of the regulations.
Canada Labour Code, Part II - Canada Occupational Health and Safety Regulations
Hazard Prevention Program Regulations		 This will ensure that a program for the prevention of hazards is implemented in the workplace for the protection of all employees under federal jurisdiction.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
  • LA-2000 Non-Compliance Reports
 Draft regulations are being finalized for prepublication in Part I of the Canada Gazette (for a 75-day consultation period).
The following regulations are made on the joint recommendation of the Minister of Labour and Housing and the Minister of Transport:
Canada Labour Code, Part II - Aviation Occupational Health and Safety Regulations This will bring the existing regulations up to date and is part of an ongoing commitment to regularly review and update regulations.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
 The relevant proposed regulations are with Justice Canada’s Regulations Section for legal drafting and subsequent prepublication in Part I of the Canada Gazette.
Canada Labour Code, Part II - Onboard Trains Occupational Health and Safety Regulations This will bring the existing regulations up to date and is part of an ongoing commitment to regularly review and update regulations.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
 Working with Transport Canada to finalize the draft regulations prior to transmittal to Justice Canada’s Regulations Section for legal drafting.
Canada Labour Code Part II - Marine Occupational Health and Safety Regulations This will bring the existing regulations up to date and is part of an ongoing commitment to regularly review and update regulations.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
 Working with Transport Canada to finalize the draft regulations prior to transmittal to Justice Canada’s Regulations Section for legal drafting.
These following regulations are made on the joint recommendation of the Minister of Labour and Housing, the Minister of Natural Resources and the Minister of Indian Affairs and Northern Development:
Canada Labour Code, Part II - Oil and Gas Occupational Health and Safety Regulations This will bring the existing regulations up to date and is part of an ongoing commitment to regularly review and update regulations.
  • Hazardous Occurrence Reports
  • Annual Hazardous Occurrence statistics
 Working with the National Energy Board and HRSDC Legal Services to finalize the draft for onward transmittal to Justice Canada’s Regulations Section for legal drafting.

 

Horizontal Initiatives

Human Resources and Skills Development Canada is the lead on the following horizontal initiatives. A Horizontal Results Database detailing each initiative is available at the following internet address: http://www.tbs-sct.gc.ca/

  • Aboriginal Human Resources Development Strategy
  • Aboriginal skills and employment partnerships and the Joint Voisey's Bay employment and training authority
  • Youth Employment Strategy
  • Labour Market Development Agreements
  • Sector Council Program
  • Older Workers Pilot Projects Initiative
  • Canada Student Loans Program
  • National Literacy Program
  • National Homelessness Initiative
  • Service Canada
  • Toronto Waterfront Revitalization Initiative

Evaluations and Audits

Human Resources and Skills Development Canada (HRSDC) is committed to ensuring that it gets the best possible results from its programs, policies and services, and that it does so in an effective and efficient manner. The department can assess this through evaluations and audits.

Evaluations examine all elements of a program, ranging from the procedures and policies that are used to design and deliver the program, to measuring the achieved results or impacts (both intended and unintended) of the program. Evaluations provide credible and objective evidence of how well programs and policies are working, and how they might be improved.

Audits, on the other hand, provide management with objective assessments and assurance on key aspects of management practices, control systems and information used for decision-making and financial reporting. Audits also guide management in determining where the organization is most exposed to risk, and what remedial actions are available and appropriate.

While evaluation and audit functions are distinct, both contribute to ensuring that the department has timely, strategically-focused, objective and evidence-based information on its management practices and on the performance of its policies, programs and services, to produce better results for Canadians.

Fiscal year 2003-2004 represented a year of significant change and transformation for both the Evaluation and Internal Audit directorates. They first underwent reorganization in the Human Resources Development Canada, and then the audit and evaluation functions were integrated within HRSDC.

During the year, evaluation efforts were focused, for the most part, on labour market programs, which now reside with HRSDC. Priority was given to evaluations of grant and contribution programs requiring the renewal of their terms and conditions, as well as programs pursuant to the federal-provincial Labour Market Development Agreements. Significant evaluation activity, however, was also initiated for programs that now reside within Social Development Canada, and much of this evaluation work was in progress during 2003-2004. These included, among others, evaluations of the National Child Benefit Strategy, the Labour Market Agreements for Persons with Disabilities, and the Guaranteed Income Supplement and Spousal Allowance.

The Internal Audit function operated that year in a context of significant and ongoing departmental changes, both in term of accountability structures and program/process design and operation. Internal audit efforts supported risk and change management while pursuing the conduct of several major assurance audits, most of which were completed in the following year.

Internal Audit Services (formerly Internal Audit and Risk Management Services) administrative reporting changed twice during the period. Since February 2004, the Director General, Audit and Evaluation is reporting to the ADM, Strategic Policy and Planning.

Internal Audit has invested in new technology to improve its efficiency and has increased the depth and coverage of the quality assurance program.

HRSDC publishes and makes its evaluations and audits available to Canadians. The chart below includes evaluation studies, audits and reviews published or in progress during 2003-2004, and organized by departmental strategic outcomes. Executive summaries, observations, recommendations and management action plans are published on HRSDC Internet sites.42

Evaluations and Audits
To provide
Canadians with:		 As demonstrated by the findings
of the following:
Efficient and effective income support and labour market transitions
  • EI Reform and Seasonal Workers that Earn Less than $12,000 (published)
  • Unemployment Insurance-Employment Insurance Transition: An Evaluation of the Pre-2001 Maternity and Parental Benefits Program in Canada (published)
  • Summative Evaluation of Employment Benefits and Support Measures under the Terms of the Canada/British Columbia Labour Market Development Agreement (in progress)
  • Formative Evaluation of the Official Language Minority Communities Support Fund (in progress)
  • Audit of HRSDC Youth Employment Initiatives Program (in progress)
  • Audit of Entitlement to Employment Insurance Benefits (in progress)
Enhanced competitiveness of Canadian workplaces by supporting investment in and recognition and utilization of skills
  • Formative Evaluation of the Sectoral Partnerships Initiative (in progress)
Through access to learning, Canadians can participate fully in a knowledge-based economy and society
  • Formative Evaluation of Canada Education Savings Grant Program (published)
  • Formative evaluation of the Canada Student Loans Program (in progress)
  • Audit of the Learning Initiatives Program (in progress)
Safe, healthy, fair, stable, cooperative and productive workplaces
  • Evaluation of the Federal Contractors Program (published)
  • Gender Equality in the Labour Market (published)
  • Summative Evaluation of the Labour Management Partnerships Program
    (in progress)
  • Audit Part III of the Canada Labour Code (in progress)
Enhanced community capacity to contribute to the reduction of homelessness
  • Evaluation of the National Homelessness Initiative: Implementation and Early Outcomes of the HRDC-based Components (published)
  • Audit of the Supporting Communities Partnership Initiative (completed)
Seamless, integrated and multi-channel service delivery that ensures client satisfaction
  • Audit of Management of Personal Information (in progress)
  • Audit of Implementation of Modern Management at HRDC (in progress)
 
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Date Modified:  2004-12-01 Top of Page Important Notices