Government Funding Lunch & Learn June 4 th, 2012

Government FundingGovernment Funding

Lunch & Learn

June 4th, 2012

AuthoritiesAuthorities

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Reporting Cycle for Government Expenditures Reporting Cycle for Government Expenditures

Reporting Cycle for Government Expenditures Reporting Cycle for Government Expenditures (cont’d)(cont’d)

The reporting cycle for Government expenditures establishes events leading up to the tabling of various documents and processes related to the Government's budget and expenditure plans.

The primary documents are:

The Budget, prepared by the Minister of Finance, which outlines the government's revenue projections and spending obligations;

Estimates documents which specify expenditure plans in greater detail; and

Public Accounts which provide audited financial statements and represent the major accountability report of the Government of Canada.

These documents provide financial and non-financial information to parliamentarians to review and make decisions on the use of public funds by the Government.

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Reporting Cycle for Government Expenditures Reporting Cycle for Government Expenditures (cont’d)(cont’d)The fiscal year of the Government of Canada runs from April 1 to March 31. Each fiscal year is

divided into three parliamentary Supply periods. Supply is the process by which the Government asks Parliament to appropriate funds in support of approved programs and services, and Supply periods are designated as follows:

First period – April 1 to June 23

Second period – June 24 to December 10

Third period – December 11 to March 26

The reporting cycle actually starts in the third period (December 11 to March 26), when the Budget, presented by the Minister of Finance, and the Main Estimates are tabled, followed by the Interim Supply Bill to request initial funding to cover the first three months of the new fiscal year. These documents are all tabled and approved by Parliament prior to the start of the new fiscal year on April 1. This ensures that the necessary planning to move Government priorities forward is in place for the coming year. Changes and updates to planned spending are presented in Supplementary Estimates which are identified in an alphabetical sequence (A, B, C, etc.).

Supplying the necessary documentation on Government expenditures on a cyclical basis helps Parliamentarians better understand how taxpayer money is being spent. It also ensures that their decisions are based on relevant and updated information. 5

CBC/Radio-Canada Funding CycleCBC/Radio-Canada Funding Cycle

• Annual Reference Levels Update (ARLU) - August to October

• Main Estimates – November to February

• Supplementary Estimates A – tabled in June

• Supplementary Estimates B – tabled in late October or early November

• Supplementary Estimates C – tabled in February

• Capital Budget Submission – December to March (for TBS Ministers’ Meeting late March)

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CBC/Radio-Canada Funding Cycle (cont’d)CBC/Radio-Canada Funding Cycle (cont’d)

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Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13

Annual Reference Levels Update for 2013-2014 Main Estimates for 2013-2014

Capital Budget Submission for 2013-2014

Supplementary Estimates A for 2012-2013 Supplementary Estimates B for 2012-2013 Supplementary Estimates C for 2012-2013

Program Activity Architecture (PAA)Program Activity Architecture (PAA)

The PAA is an architecture consisting of a structured inventory of all programs being delivered by a department / Crown. The programs of the PAA are structured in a manner according to their relationship with each other and the Strategic Outcome.

The PAA:

• Groups related program activities and links them logically to the Strategic Outcomes they support;

• Provides the framework by which planned resources allocations are linked to each activity at all levels;

• Establishes the structure of Estimates (Main Estimates) and Public Accounts.

CBC/Radio-Canada uses the PAA structure for planning purposes only. The Annual Reference Levels Update and Main Estimates exercises are done based on the Corporation’s approved PAA structure (approved each fiscal by Treasury Board prior to the ARLU & Main Estimates).

Note: The Corporation does not report based on the PAA structure like government departments.

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Program Activity Architecture (PAA) (cont’d)Program Activity Architecture (PAA) (cont’d)

CBC/Radio –Canada PAA for 2012-13:

1.0 Strategic Outcome A national public broadcasting service exists that is primarily Canadian in content and connects citizens to the Canadian experience.

1.1 Television, Radio and Digital Services As mandated in the 1991 Broadcast Act CBC/Radio-Canada provides a comprehensive range of national, regional and local radio, television, and digital services for Canadians. This incorporates programming that informs, enlightens and entertains in English, French, Aboriginal languages, and in foreign languages on Radio Canada International. Execution of these services is tailored to the uniqueness of the markets served.

1.2 Transmission and distribution of programsThe distribution of the national broadcasting service to Canadians in virtually all parts of Canada through satellite, microwave and landlines. Included is the provision of the signal that delivers service to the individual radio and television receivers through CBC/Radio-Canada transmitters, payments to privately-owned affiliates carrying CBC/Radio-Canada programs, and facilities to delay or pre-release broadcasts as required in the different time zones of the country. 9

Program Activity Architecture (PAA) (cont’d)Program Activity Architecture (PAA) (cont’d)

1.3 Specialty Channels for Specific AudiencesA variety of English and French television channels distributed through satellite and cable that target a specific audience segment and are key in delivering distinctive, high-quality and popular programming to Canadians. The incremental costs of operations are funded from revenues generated.

2.0 Strategic Outcome The following program activity supports all strategic outcomes within this organization.

2.1 Internal ServicesInternal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

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Annual Reference Levels UpdateAnnual Reference Levels Update

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Annual Reference Levels Update (cont’d)Annual Reference Levels Update (cont’d)

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Reference Levels refer to the level of approved resources that have been agreed to between the department / Crown and the Treasury Board for a three-year period. The ARLU is in essence a forecasting exercise, the basis / analysis for the next exercise which is called the Main Estimates.

The reference levels show the level of resources for each major type of spending, including:

- Operating costs- Salary costs- Capital expenditures- Transfers- Revenues

Process

- The starting point is always the prior year’s ending reference levels (approved ARLU exercise).

- From there, we reach out to other departments and gather the following:

- Salary figures from the March FS (provided by Corporate Reporting)- Revenue forecasts at August 31st (provided by Corporate Budgeting and Forecasting)- Capital Plan Results at March 31st (provided by Capital)


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Salary Levels

The year-end salary expense (budgetary level) is forecasted in the ARLU exercise to account for changes such as increases (frozen since 2010-11) and various other adjustments.

Salary Allocation Total salary Normalized Adjusted Ending salaryCorporate salary salary Salary level

2011-2012 2012-2013 for 2013-2014 ARLUETV xx xx xx xx xx xxFTV xx xx xx xx xx xxTelevision xx xx xx xx xx xx

ER xx xx xx xx xx xxFR xx xx xx xx xx xxRadio xx xx xx xx xx xx

T&D xx xx xx xx xx xxNN xx xx xx xx xx xxFNN xx xx xx xx xx xx

Corp Mgmt xx xx xx xx xx xxTOTAL xx xx xx xx xx xx


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Revenues

The August revenue forecasts are compiled and provided by Corporate Budgeting and Forecasting. Once supplied, the forecasts are consolidated by PAA with Corporate revenues allocation to television and radio.

Forecast 2012-2013 ARLU

Budget 2012-2013 2013-14 2014-15 2015-116

TELEVISION SERVICES

ETN (incl. Country Canada)CommercialMiscellaneousLPIF

Subtotal ETN 0 0 0 0

FTNCommercialMiscellaneousLPIF

Subtotal FTN 0 0 0 0

Television Services 0 0 0 0

RADIO SERVICES

Sirius

ERN Miscellaneous 0 0 0 0

0 0 0 0

FRN (incl. RCI)Miscellaneous 0 0 0 0

Miscellaneous RCI 0 0 0 0

Subtotal FRN 0 0 0 0

Radio Services 0 0 0 0

T&D 0 0 0 0

Corporate & New Media (Miscellaneous)

Gen. Counsel and Corp. SecretariatFinanceStrategy and Business DevelopmentMobile DivisionProperty Management

0 0 0 0

Newsworld 0 0 0 0

Galaxie 0 0 0 0

RDI 0 0 0 0

Total Budgetary Revenue 0 0 0 0


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Allocation of Revenue

2011-2012 2013-2014 2014-2015 2015-2016

Actual Forecast Alloc. Adjusted Forecast Alloc. Adjusted Forecast Alloc. Adjusted

Television Services 0 0 0 0 0 0

Radio Services 0 0 0 0 0 0

T&D 0 0 0 0 0 0

Corporate 0 0 0 0 0 0

Newsworld 0 0 0 0 0 0

RDI 0 0 0 0 0 0

Galaxie 0 0 0 0 0 0

Total Budgetary Revenue 0 0 0 0 0 0 0 0 0 0


Capital

Based on the March Capital results, the capital plan is profiled by PAA. Capital positions such as IT, Telecommunications, Real Estate, Fleet, etc… are allocated under the approved PAA structure.

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Amount % Amount % Amount % Amount % Amount % Amount % Amount % Amount %

ETN #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0!

FTN #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0!

Television services 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

ERN #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0!

FRN #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0!

Radio Services 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

T&D PAA 1.2 #DIV/0! #DIV/0! 0 #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0! #DIV/0! 0 #DIV/0!

ENN #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

FNN #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0! 0 #DIV/0!

Op to Cap transfer

PAA 1.1

PAA 1.1

PAA 1.3

2015-16 Adjusted2015-16ARLU Ref. Level

Reprofiled from 2012-13 2013-14 Adjusted2011-12 Actuals 2013-14 2014-15


Consolidated Figures

The figures are then consolidated in order to present the operating, capital and working capital appropriations by PAA (page 18).

• The operating appropriation is reported by salary and other operating expenditures within each PAA.

• The capital and working capital appropriations are reported by PAA.

• Revenues are presented by PAA with proceeds forecasted satisfy operating expenses over and above the base operating appropriation.

Approvals

• The figures are then consolidated, approved by the DCFO, and filed with Treasury Board (page 19).

• The ARLU is then approved by Treasury Board which serves as the basis for the Main Estimates.

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Consolidated Figures

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2013-14 ref. level 2014-15 ref. level 2015-16 ref. levelTELEVISION SERVICES PAA 1.1 Salary and benefits Other operating Total operating expenditure Capital Appropriation Revenue Total Appropriation RADIO SERVICES PAA 1.1 Salary and benefits Other operating Total operating expenditure Capital Appropriation Revenue Total Appropriation T&D PAA 1.2 Salary and benefits Other operating Total operating expenditure Capital Appropriation Revenue Total Appropriation ENGLISH NEWS NETWORK PAA 1.3 Salary and benefits Other operating Total operating expenditure Revenue Operating Appropriation FRENCH NEWS NETWORK PAA 1.3 Salary and benefits Other operating Total operating expenditure Revenue Operating Appropriation Internal Services PAA 2.1 Salary and benefits Other operating Total operating expenditure Operating Appropriation

Total Oper. Expenditures (gross) 0 0 0

Total Salary and Benefits 0 0 0 Total Other Operating 0 0 0 Total Oper. Expenditures 0 0 0

Operating Appropriation (net) Capital Appropriation 0 0 0

Total Revenue

Total Government Appropriation 0 0 0


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C Form / Formule C

#REF! Operating Capital Transfer Payments

Fonctionnement Capital Paiements de transfert

DESCRIPTION Personnel

Other operating costs

Revenue credited the vote Capital Personnel costs Capital Non-Personnel costs GrantsContributions and Other transfer

paymentsTOTAL VOTED Loans, Investments and Advances

Autres frais de fonctionnement Recettes à valoir sur le crédit Capital Frais de personnel Capital Frais non liés au personnel SubventionsContributions et autres paiements de

transfertTOTAL VOTÉ

Prêts, dotations en capital et avances

1. Opening Reference Levels / Niveaux de référence d'ouverture 0

2. New Approvals/ Nouvelles approbations :

Approved / Approuvé :

# #REF! 0

# #REF! 0

#Internal transfer between votes (interest portion on Toronto Broadcast Centre Mortgage - last year)

0

Pending Approval / En attente d'approbation :

Sub-total New Approvals / Sous-total- Nouvelles approbations 0 0 0 0 0 0 0 0 -

3. Transfers / Transferts:

Approved / Approuvé :


Sub-total Transfers / Sous-total - Transferts 0 0 0 0 0 0 0 0 -

4. Reprofile Requests (complete Annexes C and D):


Sub-total Reprofile Requests 0 0 0 0 0 0 0 0 -

5. Other Adjustments:


Sub-total Other Adjustments 0 0 0 0 0 0 0 0 -

Other- EBP Adjustment / Rajustement du taux RASE 0

6. Closing Reference Levels / Niveaux de références de fermetures 0 0 0 0 0 0 0 0 -

Main EstimatesMain Estimates

Each year, the government prepares Estimates in support of its request to Parliament for authority to spend public funds. This request is formalized through the introduction of appropriation bills in Parliament. The Estimates are the vehicle for identifying the proposed level of spending authority being sought by Parliament for the upcoming fiscal year (April 1 to March 31).

The Estimates, which are tabled in the House of Commons by the President of the Treasury Board, consist of the following:

• Part I – The Government Expenditure Plan provides an overview of federal spending and summarizes the key elements of the Main Estimates.

• Part II – The Main Estimates are based on the Estimates submitted by departments and Crowns (following approval of the Annual Reference Levels Update). It provides a listing of the resources required for the upcoming fiscal year in order to deliver the programs for which they are responsible. The report identifies the spending authorities (Votes) and the amounts to be included in subsequent Appropriation Bills. Parliament will be asked to approve these Votes to enable the government to proceed with its spending plans. Parts I and II of the Estimates are tabled on or before March 1.

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Main Estimates (cont’d)Main Estimates (cont’d)

Process

Once the Annual Reference Levels Update (ARLU) is approved by Treasury Board, the Main Estimates reports are produced & presented to our President for approval (pages 22 to 25).

Timing

November – Call Letter from Treasury Board.

November to December – Reports are produced, reviewed by CFO and submitted to Treasury Board.

January – Page proofs are supplied by Treasury Board for our President’s approval.

February – The President of the Treasury Board tables all Estimates in Parliament and outlines the government’s spending plans for the upcoming year.

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English

CBC

Raison d' être

As defined by the 1991 Broadcasting Act, the Canadian Broadcasting Corporation, as the national public broadcaster, should provide radio and television services incorporating a wide range of programming that informs, enlightens and entertains. The programming provided by the Corporation should: - Be predominantly and distinctively Canadian;

- Reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions;

- Actively contribute to the flow and exchange of cultural expression;

- Be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities;

- Strive to be of equivalent quality in English and French;

- Contribute to shared national consciousness and identity;

- Be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose; and

- Reflect the multicultural and multiracial nature of Canada.


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CBC

Highlights

Long text does not exist.

CBC

Summary Wording - Vote

Payments to the Canadian Broadcasting Corporation for operating expenditures

CBC

Vote Detail - Vote

Payments to the Canadian Broadcasting Corporation for operating expenditures

CBC

Additional Tweltfhs Justification

No Vote Detail text available

CBC


Payments to the Canadian Broadcasting Corporation for working capital

CBC

Vote Detail - Vote

Payments to the Canadian Broadcasting Corporation for working capital

CBC



CBC



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CBC


Payments to the Canadian Broadcasting Corporation for capital expenditures

CBC

Vote Detail - Vote

Payments to the Canadian Broadcasting Corporation for capital expenditures

CBC



CBC

Strategic Outcome

A national public broadcasting service exists that is primarily Canadian in content and connects citizens to the Canadian experience.

CBC

Program Activity

Television, Radio and Digital Services

CBC

Program Activity

Radio Services

CBC

Program Activity

Transmission and distribution of programs

CBC


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Program Activity

Specialty Channels for Specific Audiences

CBC

Program Activity

French News Network

CBC

Strategic Outcome

The following program activity supports all strategic outcomes within this organization.

CBC

Program Activity

Internal Services

Supplementary EstimatesSupplementary Estimates

The President of the Treasury Board tables three Supplementary Estimates (A-B-C) usually in late spring, late fall and early spring to obtain the authority of Parliament to adjust the government's expenditure plan, as reflected in the Estimates for that fiscal year. Funding for these Estimates is provided for in the Federal Budget and is, therefore, built into the existing fiscal framework.

The Supplementary Estimates serve two purposes. First, they seek authority for revised spending levels that Parliament will be asked to approve in an Appropriation Act. Second, they provide Parliament with information on changes in the estimated expenditures to be made under the authority of statutes previously passed by Parliament. Departments and Crowns generally obtain approval for items to be included in the Supplementary Estimates through a Treasury Board Submission.

Treasury Board Submissions

Treasury Board Submissions are used to obtain approval for decisions that are not within the authority of individual Ministers, Departments or Crowns, including that affect the allocation of financial resources.

Other purposes for Treasury Board Submissions:

• Approval for projects and contracts exceeding delegated authorities;• Amendments to previous Treasury Board decisions;• Approval of an exception to Treasury Board policy;• Authority to change certain regulations and order;• Recommendations to the Governor-in-Council.

Note: The Treasury Board Submission process will be presented in full in a separate Lunch & Learn this Fall. 26

Supplementary Estimates (cont’d)Supplementary Estimates (cont’d)

Supplementary Estimates A - (tabled in June)

The Corporation usually files a nil request for Supps A.

Supplementary Estimates B - (tabled in October-November)

Each year, as part of the Supps B exercise, the Corporation submits a Treasury Board Submission to seek approval to access an amount of $60 million in additional funding.

Supplementary Estimates C - (tabled in February)

Since December 2010, the Corporation has filed a nil request for Supps C (last filing was in December 2009 for the 2009-2010 Supps C exercise).

The Corporation use to seek approval for all transfers from operating to capital as part of the Supps C exercise (transfers from operating budgets to fund, or partially fund, capital projects). Since fiscal 2010-2011, all funds directed to supplement capital projects are deemed as self-generated revenues (the Corporation can use its revenues to fund various activities as it deems necessary).

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Capital Budget Capital Budget

The capital budget is approved through a Treasury Board Submission in late March / early April.

Process :

• The capital planning exercise starts in October and leads to the Board Presentation in March.

• The starting point is the capital plan at October 31st. From there, the capital plan is revised based on the needs for the next 5 years.

• In January, the Treasury Board Submission is captured on the latest draft version of the plan (usually the plan is well defined at this stage). The Corporation seeks approval for the next fiscal only, yet presents the outer 4 years for forecasting and transparency purposes.

Note: The Treasury Board Submission process and Capital Process will be presented in full in separate Lunch & Learns this Fall.

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Documents

Government Funding Lunch & Learn June 4 th, 2012