Consolidated Specified Purpose Accounts

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Consolidated specified purpose accounts are particular categories of revenues and expenses whereby legislation requires that revenues received for purposes specified in the legislation be credited to these accounts and that related payments be charged to the accounts. They are principally used where the activities are similar in nature to departmental activities and the transactions do not represent future liabilities to third parties but in essence constitute Government revenues and expenses.

The transactions of these accounts are reported with revenues and expenses, in order to provide a more comprehensive reporting of the Government's operating results.

Further, enabling legislation requires that the transactions in each of these accounts be accounted for separately. Table 4.6 presents a summary of the balances and transactions of these accounts, in the manner required by legislation. A narrative description is provided for accounts reported in Table 4.6. Such descriptions follow the same presentation order as their respective tables.

The financial statements of the Employment Insurance Operating Account, together with the Independent Auditor's Report thereon, are presented at the end of this section.

Table Summary

The table presents, to the nearest dollar, a balances and transactions summary of the consolidated specified purpose accounts. It consists of five columns : a list of accounts; April 1, 2014; Revenues and other credits divided into two columns — External transactions, and Internal transactions; Expenses and other debits divided into two columns — External transactions, and Internal transactions; March 31, 2015. The first series of rows presents insurance accounts. The second series of rows presents other consolidated specified purpose accounts. The third series of rows presents accounts and funds related to endowment principal. A final row presents the total for this table.

Table 4.6
Consolidated Specified Purpose Accounts

  April 1, 2014
($)
Revenues and other credits Expenses and other debits March 31, 2015
($)
External transactions
($)
Internal transactions
($)
External transactions
($)
Internal transactions
($)
Insurance accounts —            
Agriculture and Agri‑Food —            
Crop Reinsurance Fund 559,616,298 11,696,050   (negative 278,307)   571,590,655
Less: interest‑bearing loans 277,514,751         277,514,751
Subtotal 282,101,547 11,696,050   (negative 278,307)   294,075,904
Agricultural Commodities Stabilization Accounts 646,510         646,510
Total 282,748,057 11,696,050   (negative 278,307)   294,722,414
Employment and Social Development —            
Employment Insurance Operating Account, Table 4.7 (negative 2,733,731,401) 22,616,418,049 398,308,147 18,288,455,838 1,470,832,728 521,706,229
Finance —            
Investors' Indemnity Account 45,303         45,303
Health —            
Health Insurance Supplementary Account 28,386         28,386
Natural Resources —            
Canadian Nuclear Safety Commission —            
Nuclear Liability Reinsurance Account 3,390,721 231,035       3,621,756
Transport —            
Ship‑Source Oil Pollution Fund 405,895,803 133,372 5,266,649 1,215,985 319,710 409,760,129
Total insurance accounts (negative 2,041,623,131) 22,628,478,506 403,574,796 18,289,393,516 1,471,152,438 1,229,884,217
Other consolidated specified purpose accounts —            
Canadian Heritage —            
National Battlefields Commission —            
Trust Fund 987,855 9,000 7,366 216,727 3,001 784,493
Environment —            
Court Award Deposits —            
Other than Environmental Damages Fund 548,221 3,178   83,078 2,926 465,395
Environmental Damages Fund 3,398,716 7,092,690 295,146 898,795   9,887,757
Parks Canada Agency —            
New Parks and Historic Sites Account 12,192,185 3,969,073   422,624 655,874 15,082,760
Subtotal 16,139,122 11,064,941 295,146 1,404,497 658,800 25,435,912
Finance —            
Canadian Commercial Bank and Northland Bank Holdback Account 246,223,464         246,223,464
Fisheries and Oceans —            
Supplementary Fines Account — Species at Risk Act 30,000 5,000       35,000
Supplementary Fish Fines Account 1,744,542 41,678   109,690   1,676,530
Subtotal 1,774,542 46,678   109,690   1,711,530
Indian Affairs and Northern Development —            
Cleanup costs for environmental damage caused by Bowater 2,237,411     111,246   2,126,165
Environmental Studies Research Fund 3,555,355   1,322,590 1,107,825 2,447,530 1,322,590
Subtotal 5,792,766   1,322,590 1,219,071 2,447,530 3,448,755
Natural Resources —            
Environmental Studies Research Fund 4,701,394 118,157   163,930 1,121,116 3,534,505
Public Works and Government Services —            
Seized Property Proceeds Account 39,418,692 29,956,702   50,406,172   18,969,222
Transport —            
Fines for the Transportation of Dangerous Goods 514,074         514,074
Total other consolidated specified purpose accounts 315,551,909 41,195,478 1,625,102 53,520,087 4,230,447 300,621,955
Endowment principal —            
Environment —            
Parks Canada Agency —            
Mackenzie King trust account 225,000         225,000
Health —            
Canadian Institutes of Health Research —            
Endowments for Health Research 140,267         140,267
Industry —            
National Research Council of Canada —            
H.L. Holmes Fund 4,880,263 125,626       5,005,889
W.G. Schneider Fund 30,000         30,000
Social Sciences and Humanities Research Council —            
Queen's Fellowship Fund 250,000         250,000
Subtotal 5,160,263 125,626       5,285,889
Total endowment principal 5,525,530 125,626       5,651,156
Total (negative 1,720,545,692) 22,669,799,610 405,199,898 18,342,913,603 1,475,382,885 1,536,157,328

Insurance Accounts

For the following Insurance Accounts, revenues and other credits from outside parties totalled $22,628 million ($21,917 million in 2014) while expenses and other debits to outside parties totalled $18,289 million ($17,506 million in 2014) and are reported as expenses in the Consolidated Statement of Operations and Accumulated Deficit.

Revenues and other credits of $404 million ($401 million in 2014) and expenses and other debits of $1,471 million ($1,495 million in 2014) internal to the operations of the Government, have been eliminated in order to present transactions with outside parties.

Crop Reinsurance Fund

This Fund, continued in the accounts of Canada pursuant to subsection 13(1) of the Farm Income Protection Act, provides insurance to participating provinces for deficits they might incur in their agriculture insurance funds. The Crop Reinsurance Fund currently operates under the authority of the Farm Income Protection Act.

The revenues of the Fund come from a percentage of total premiums collected by provinces for the purpose of insurance of agricultural production. Both the amount of revenue collected and expenditures from the Crop Reinsurance Fund paid to provinces are subject to the terms of reinsurance agreements. When there are insufficient revenues in the Crop Reinsurance Fund to make payments, the Minister of Finance may authorize an advance of additional funds to cover these obligations. These advances are recovered from future revenues. Currently, the interest rate earned on surpluses in the Crop Reinsurance Fund and the interest rate charged to advances to the Fund have been set by the Department of Finance at zero percent.

Agricultural Commodities Stabilization Accounts

The purpose of these accounts was to reduce income loss to producers from market risks through stabilizing prices. Premiums were shared equally by the Government of Canada, the governments of participating provinces and participating producers.

These accounts are continued in the accounts of Canada pursuant to subsection 16(2) of the Farm Income Protection Act. Current activities are limited to collection of accounts receivable. The Agricultural Stabilization Act, under which the commodity accounts formerly operated, has been repealed and replaced by the Farm Income Protection Act effective April 1, 1991.

Employment Insurance Operating Account

The Canada Employment Insurance Commission (the Commission), a departmental corporation named in Schedule II to the Financial Administration Act, administers the Employment Insurance Act (the Act). The Commission is co‑managed by the Government, workers and employers. The objective of the Act is to provide short‑term financial relief and other assistance to eligible workers. The financial transactions relating to this objective are reported through the Employment Insurance Operating Account.

The Employment Insurance Operating Account (the Account) was established in the accounts of Canada by the Act. All amounts received under the Act are deposited in the Consolidated Revenue Fund and credited to the Account. The benefits and the costs of administration of the Act are paid out to the Consolidated Revenue Fund and charged to the Account.

Employee premium rate for each $100 of insurable earnings was $1.88 from January 1, 2014 to December 31, 2014 for employees without a Provincial Parental Insurance Plan and $1.53 for the others. From January 1, 2015 to March 31, 2015, the rate was $1.88 for employees without a Provincial Parental Insurance Plan and $1.54 for the others.

Table 4.7 presents a statement of the transactions in the Employment Insurance Operating Account.

Table Summary

The table presents, in millions of dollar, the transactions in the Employment Insurance Operating Account. It consists of three columns: a list of operating accounts; current year; previous year. The first series of rows presents revenues. The second series of rows presents expenses. The following rows present the net change, the balance at beginning of year, and the balance at end of year.

(in millions of dollars)

Table 4.7
Transactions in the Employment Insurance Operating Account

  2014–2015 2013–2014
Revenues    
Premiums —    
Employers and employeesLink to footnote 1 22,962 22,160
Penalties and interest revenue 53 68
Subtotal 23,015 22,228
Expenses    
Benefits 16,121 15,429
Transfers to the provinces — Part II 1,931 1,872
Administration costs 1,466 1,492
Administration cost transferred to provinces 191 190
Bad debts 50 16
Subtotal 19,759 18,999
Net change 3,256 3,229
Balance at beginning of year (negative 2,734) (negative 5,963)
Balance at end of year 522 (negative 2,734)

Investors' Indemnity Account

Section 57 of the Financial Administration Act provides for this account, and for the crediting thereto of the sum of $25,000, such further amounts as are appropriated by Parliament for the purpose of this section, and any recovery of losses referred to in section 58 of the Act. This sum was increased to $50,000 by Treasury Board Submission No. 817667 dated December 12, 1991.

Section 58 of the Act states that the Minister may, in accordance with and subject to regulations, pay out of the account, any losses sustained by subscribers for Government securities, who have paid all or part of the purchase price but have not received the security or repayment of the amount so paid, and losses sustained by any person in the redemption of securities.

Health Insurance Supplementary Account

This account was established pursuant to Vote L16b, Appropriation Act No. 2, 1973, to record payments in respect of persons who, through no fault of their own, have lost or been unable to obtain coverage for the insured health services under the Canada Health Act, and in accordance with the Federal‑Provincial Agreement on Eligibility and Portability. Contributions are made by all provinces to the account in proportion to population and are matched by the Federal Government.

Nuclear Liability Reinsurance Account

This account was established pursuant to sections 16 and 17 of the Nuclear Liability Act, to record premiums and to provide for payment of claims arising from accidents at an insured facility.

Ship‑Source Oil Pollution Fund

This account was established pursuant to subsection 2001, c.6 of the Marine Liability Act (previously the Canada Shipping Act), to record levy tonnage payments for oil carried by ships in Canadian waters. Maritime pollution claims, the fee of the Fund Administrator, and related oil pollution control expenses, are to be financed out of the Fund.

Other Consolidated Specified Purpose Accounts

For the following Other Consolidated Specified Purpose Accounts, revenues and other credits from outside parties of $41 million ($38 million in 2014) are reported while expenses and other debits to outside parties of $54 million ($47 million in 2014) are reported in the Consolidated Statement of Operations and Accumulated Deficit.

Revenues and other credits of $2 million ($5 million in 2014), and expenses and other debits of $4 million ($2 million in 2014) internal to the operations of the Government, have been eliminated in order to present transactions with outside parties.

Trust Fund

This account was established at the creation of the National Battlefields Commission for the purpose of acquiring various properties for the development of the park. The funds are received by way of private contributions, from municipal corporations, provincial governments and others, and deposited for the purposes of the Commission, as prescribed for in its incorporation Act. Following the land acquisitions of the Commission, funds remained in the account and increased over a period of years as a result of interest earned, while the Commission was listed in Schedule C of the Financial Administration Act, prior to September 1, 1984.

Court Award Deposits — Other than Environmental Damages Fund

This account was established for the management of court orders/awards or other financial compensation to Environment Canada that are not under the legal authority of the Environmental Damages Fund.

Environmental Damages Fund

This account was established for the management of court orders/awards or other financial compensation to Environment Canada for damages to the environment.

New Parks and Historic Sites Account

This account was established pursuant to the Parks Canada Agency Act to record payments to be used to acquire lands or property required to establish any national park, national historic site or other protected heritage area that has not yet attained full operation status, and to make any related contributions.

Canadian Commercial Bank and Northland Bank Holdback Account

This account was established to record the amount held from the recovery of monies received from the winding up of Canadian Commercial Bank and Northland Bank.

During the fiscal year, no claims have been received for potential payments from the holdback.

Supplementary Fines Account — Species at Risk Act

The account was established to record the deposit of funds received from persons declared guilty of offences under the Species at Risk Act, under paragraph 105(h) of the Act.

Supplementary Fish Fines Account

The account was established to record the deposit of funds received from persons declared guilty of offences under the Fisheries Act, under paragraph 79(2)(f) of the Act.

Cleanup costs for environmental damage caused by Bowater

This account was established pursuant to a decision of the Commercial Division of the Superior Court in the Province of Quebec. The balance in the account is to be used to finance the remediation of environmental damage caused by Bowater Canadian Forest Products Inc. relative to a land lease issued by the Department of Indian Affairs and Northern Development.

Environmental Studies Research Fund — Indian Affairs and Northern Development

This account was established pursuant to subsection 76(1) of the Canada Petroleum Resources Act. The purpose of the Fund is to finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration development and production activities on frontier land, authorized under this Act or any other Act of Parliament, should be conducted.

Environmental Studies Research Fund — Natural Resources

This account was established pursuant to subsection 76(1) of the Canada Petroleum Resources Act. The purpose of the Fund is to finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration development and production activities on frontier land, authorized under this Act or any other Act of Parliament, should be conducted.

Seized Property Proceeds Account

This account was established, pursuant to section 13 of the Seized Property Management Act, to record the net proceeds received from the disposition of seized and forfeited properties to Her Majesty or fines imposed and also funds received from the government of foreign states pursuant to agreements for the purpose of the Act. The Act also provides that the following be charged to the Account: operating expenses incurred in carrying out the purpose of the Act, amounts paid as a result of claims and repayments of advances from the Minister of Finance, interest on drawdown from Seized Property Working Capital Account and distribution of the proceeds to the relevant jurisdictions and the Consolidated Revenue Fund.

Fines for the Transportation of Dangerous Goods

This account was established, pursuant to the Transportation of Dangerous Goods Act 1992 and related regulations, to record fines levied by courts.

Endowment Principal

For the following Endowment Principal Accounts, revenues and other credits from outside parties of $126,000 ($98,000 in 2014) are reported in the Consolidated Statement of Operations and Accumulated Deficit.

Mackenzie King trust account

The late The Right Hon W L Mackenzie King bequeathed Laurier House, Ottawa, and the sum of $225,000, to the Government of Canada. The amount of $225,000 was credited to the account and earns interest, in accordance with the terms of section 3 of the Laurier House Act. The interest is to be used to assist in the maintenance of the Laurier House, which is to be preserved as a place of historic interest, and also to provide accommodation for study and research.

Endowments for Health Research

This account was established by section 29 of the Canadian Institutes of Health Research Act to record various endowments received from donors for the purpose of health research. The interest received is used for the payment of research grants.

H.L. Holmes Fund

This account was established, pursuant to paragraph 5(1)(f) of the National Research Council Act, to record the residue of the estate of H.L. Holmes. Up to two thirds of the yearly net income from the fund shall be used to finance the H.L. Holmes Award on an annual basis. These awards will provide the opportunity to post‑doctoral students to study at world famous graduate schools or research institutes under outstanding research persons.

W.G. Schneider Fund

This account was established pursuant to paragraph 5(1)(f) of the National Research Council Act, to record the residue of the estate of W.G. Schneider. The yearly net income from the fund shall be used to finance the Schneider Medal. This award recognizes employees who have made outstanding contributions to the National Research Council.

Queen's Fellowship Fund

This fund is an endowment of $250,000 that was established by Vote 45a, Appropriation Act No. 5, 1973–74. The interest earned is used for the payment of fellowships to graduate students in certain fields of Canadian studies.

Footnotes

Footnote 1

The difference between premium revenue presented here and the amount presented in the Government of Canada consolidated financial statements is due to the elimination on consolidation of premiums incurred by the Government of Canada, for an amount of $398 million ($394 million in 2014).

Return to footnote 1 referrer

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