Activities in the natural sciences and engineering

Investment, Science and Technology Division

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Introduction

This introduction provides an overview of the process of collecting scientific expenditures data. Definitions and explanatory notes relating to natural sciences and engineering, scientific and technological activities, and other terms used are given in subsequent sections.

Since 1973, Statistics Canada has been collecting detailed expenditure and full-time equivalent data on scientific activities of provincial research organizations. These data, coupled with data from other surveys, have been used by policy analysts in federal and provincial governments, research managers and the media to elaborate on the provincial scientific activities.

Intramural research and development expenditures are a direct input into the Canadian gross domestic expenditures on research and development (GERD) indicators.

Expenditures on research and development (R&D) and related scientific activities (RSA) are subdivided into “current expenditures” and “capital expenditures”. Current expenditures indicate the “where” and “by whom” the activities are performed. (e.g., internally by the organization or by external performers).

Personnel are allocated to research and development or related scientific activities, and distributed into the following categories: scientific and professional personnel, supporting personnel, and other.

1. Total scientific and technological expenditures by activity in the natural sciences and engineering.

Definitions and explanations of terms

Natural sciences and engineering includes disciplines concerned with understanding, exploring, developing or utilizing the natural world. Included are such disciplines as the engineering, mathematical, life and physical sciences.

The questionnaire covers two consecutive fiscal years and the headings for both years are identical. One set of definitions/explanations therefore suffices.

Actual and preliminary expenditures on scientific and technological activities are to be classified according to the type of scientific activity and who performed or will perform the scientific activity (intramural or extramural).

Scientific and technological (S&T) activities are required for the generation, dissemination or initial application of the new S&T knowledge. The central activity is scientific research and experimental development (R&D). In addition there are a number of activities closely related to R&D, and are termed related scientific activities (RSA). The RSA identified as being appropriate for the provincial research organization in the natural sciences and engineering are: scientific data collection, information services, and special services and studies.

1. Research and development (R&D)

Research and experimental development – creative work undertaken on a systematic basis in order to increase the stock of knowledge, and the use of this stock of knowledge to devise new applications.

In this survey, the term research and development (R&D) is synonymous with research and experimental development.

The basic criterion for distinguishing R&D from related scientific activities is the presence in R&D of an appreciable element of novelty and the resolution of scientific and/or technological uncertainty. New knowledge, products or processes are sought. The work is normally performed by, or under the supervision of, persons with postgraduate degrees in the natural sciences and engineering.

An R&D project generally has three characteristics:

• a substantial element of uncertainty, novelty and innovation;
• a well-defined project design; and
• a report on the procedures and results of the project.

Examples:

• Special investigation of a particular mortality in order to establish the side effects of certain medical treatments.
• The investigation of new methods of measuring temperature is research as is the study and development of new systems and techniques for interpreting the data.
• The development of new methods of identifying tree species and determining if they are diseased.
• The creation of a new transportation system as a prototype and the technical evaluation of its operations.

R&D is generally carried out by specialized R&D units. However, an R&D project may also involve the use of non R&D facilities (e.g., testing grounds), the purchase or construction of specialized equipment and materials, and the assistance of other units. Costs of such items, attributable to the project, are to be considered R&D costs.

R&D units may also be engaged in non R&D activities such as technical advisory services, testing, or construction of special equipment for other units. So far as is practical, the effort devoted to such operations should be excluded from R&D.

Intramural (internal) R&D

Intramural (internal) R&D is defined as all expenditures for R&D performed within your organization by your personnel during a specific period, whatever the source of funds.

Current expenditures - includes costs (expenditures) incurred for scientific activities carried out by in-house personnel including salaries and contributions to employee benefit plans (e.g. pension); materials and supplies; contract payments to contractors working on site within your organization’s premises; as well as costs for personnel engaged in the administration of extramural (external) R&D contracts, grants and contributions.

Capital expenditures – expenditures on construction, acquisition or preparation of land, buildings, machinery and equipment are capital expenditures. All other expenditures are current expenditures.

Extramural (external) R&D

Extramural (external) payments are made by the provincial research organizations for R&D activities performed by extramural sectors and these sectors are defined as follows:

Business enterprise – business and government enterprises including public utilities and government-owned firms. Incorporated consultants providing scientific and engineering services are also included. Industrial research institutes located at Canadian universities are considered to be in the higher education sector.

Higher education – composed of all universities, colleges of technology and other institutes of post-secondary education, whatever their source of finance or legal status. It also includes all research institutes, experimental stations and clinics operating under the direct control of, or administered by, or associated with, the higher education establishments.

Hospitals and health organizations – Canadian hospitals and health organizations which are not part of university medical schools.

Federal, provincial and municipal governments – departments and agencies of these governments. Government enterprises, such as provincial utilities are included in the business enterprise sector.

Other Canadian performers – include Canadian non-profit institutions that are not serving the health field or business enterprise sector; individuals or organizations in Canada not belonging to any of the above sectors, and all foreign government agencies, foreign companies (including foreign subsidiaries of Canadian firms), international organizations, non-resident foreign nationals and Canadians studying or teaching abroad.

Extramural expenditures include:

Contract payments to an outside institution or individual performing R&D.

R&D grants and contributions – awards to organizations or individuals for the conduct of R&D and intended to benefit the recipients.

2. Related scientific activities (RSA)

Related scientific activities involve the generation, dissemination and application of scientific and technological knowledge. The kinds of related scientific activities for the natural sciences and engineering are described below.

Related scientific activities include:

Scientific data collection – the gathering, processing, collating and analyzing of data on natural phenomena. These data are normally the results of surveys, routine laboratory analyses or compilations of operating records.

Data collected as part of an existing or proposed research project are charged to R&D. Similarly, the costs of analyzing existing data as part of a research project are R&D costs, even when the data were originally collected for some other purpose. The development of new techniques for data collection is also to be considered an R&D activity.

Examples of scientific data collection are: routine geological, hydrographic, oceanographic and topographic surveys; routine astronomical observations; maintenance of meteorological records; and wildlife and fisheries surveys.

Information services – all work directed to recording, classifying, translating and disseminating scientific and technological information as well as museum services. Included are the operations of scientific and technical libraries, S&T consulting and advisory services, the Patent Office, the publication of scientific journals and monographs, and the organizing of scientific conferences. Grants for the publication of scholarly works are also included.

General purpose information services or information services directed primarily towards the general public are excluded, as are general departmental and public libraries. When individual budgets exist, the costs of libraries which belong to institutions otherwise entirely classified to another activity, such as R&D, should be assigned to information services. The costs of printing and distributing reports from another activity, such as R&D, are normally attributable to that activity.

Special services and studies – work directed towards the establishment of national and provincial standards for materials, devices, products and processes; the calibration of secondary standards; non-routine quality testing; feasibility studies and demonstration projects.

Sub categories under Special services and studies include:

Testing and standardization – work directed towards the establishment of national and international standards for materials, devices, products and processes, the calibration of secondary standards and non-routine quality testing. The development of new measures for standards, or of new methods of measuring or testing, is R&D and should be reported as such. Exclude routine testing such as monitoring radioactivity levels or soil tests before construction.

Feasibility studies – technical investigations of proposed engineering projects to provide additional information required to reach decisions on implementation. Besides feasibility studies per se, the related activity of demonstration projects are to be included. Demonstration projects involve the operation of scaled-up versions of a facility or process, or data on factors such as costs, operational characteristics, market demand and public acceptance. Projects called “demonstration projects” but which conform to the definition of R&D should be considered R&D. Once a facility or process is operated primarily to provide a service or to gain revenue, rather than as a demonstration, it should no longer be included with feasibility studies. In all demonstration projects, only the net costs should be considered.

Administration of extramural RSA programs – the costs, including salaries, of personnel engaged in the administration of contracts and grants and contributions for related scientific activities that are to be performed outside the provincial research organizations.

NOTE: If any of these activities are performed in direct support of an R&D project or program, include the expenditures in the R&D section above.

Intramural (internal) RSA expenditures

Current expenditures – includes costs (expenditures) incurred for related scientific activities carried out by in-house personnel including salaries and contributions to employee benefit plans (e.g. pension); materials and supplies; contract payments to contractors working on site within your organization’s premises; as well as costs for personnel engaged in the administration of extramural (external) R&D contracts, grants and contributions.

Capital expenditures – expenditures on construction, acquisition or preparation of land, buildings, machinery and equipment are capital expenditures. All other expenditures are current expenditures.

Extramural RSA expenditures include:

Contract payments to an outside institution or individual performing RSA.

RSA grants and contributions – awards to organizations or individuals for the conduct of RSA and intended to benefit the recipients.

2. Source of funds for intramural (internal) research and development (R&D) in the natural sciences and engineering

This question identifies the sources of funds for expenditures on research and development performed by your organization. It will help to ensure that work funded from outside the provincial research organization is not overlooked.

R&D budget of the provincial research organization (operating capital, and grants and contributions) – that portion of the total provincial research organizational budget which was spent on natural science and engineering R&D activities.

Federal government – all R&D funds from the departments and agencies of the federal government used for natural science and engineering activities.

Provincial/Territorial government – all R&D funds from the provincial/territorial government used for natural science and engineering activities.

Canadian business enterprises – all R&D funds from business enterprises used for natural science and engineering activities.

Other Canadian sources – all R&D funds for natural science and engineering activities from sources not specified above for example, higher education, hospitals and private non-profit organizations.

Foreign sources – all R&D funds from sources located outside the jurisdictional boundary of Canada.

3. Personnel in full-time equivalent (FTE) engaged in scientific and technological activities in the natural sciences and engineering

Full-time equivalent (FTE) – a measure of the time actually devoted to the conduct of scientific activities. Example calculation: an employee who is engaged in scientific activities for half a year has a full-time equivalence of 0.5. If, out of five scientists engaged in R&D work, one works solely on R&D projects and the remaining four devote only one quarter of their working time to R&D , then: FTE = 1 + ¼ + ¼ + ¼ + ¼ = 2.0.

Scientific and professional personnel - FTE in jobs that require at least one academic degree or nationally recognized professional qualification (e.g. professional engineers) as well as those with equivalent experience.

Supporting personnel (technicians and technologists) – personnel in jobs that require specialized vocational or technical training beyond the secondary education level (e.g., community colleges and technical institutes) as well as those with experience equivalent to this training.

Other – clerical, secretarial, administrative, operational and other support personnel.

Enquiries should be directed to:

Public Sector Investments
Investment, Science and Technology Division
Statistics Canada
150 Tunney’s Pasture Driveway, Room 1306 E
Ottawa, Ontario K1A 0T6
Fax: 613-951-9920
E-mail: istd-dist.information@statcan.gc.ca

 Statement outlining results, risks and significant changes in operations, personnel and program

A) Introduction

Statistics Canada's mandate

Statistics Canada is a member of the Innovation, Science and Economic Development portfolio.

Statistics Canada's role is to ensure that Canadians have access to a trusted source of statistics on Canada that meets their highest priority needs.

The Agency's mandate derives primarily from the Statistics Act. The Act requires that the Agency collects, compiles, analyzes and publishes statistical information on the economic, social, and general conditions of the country and its people. It also requires that Statistics Canada conduct the census of population and the census of agriculture every fifth year, and protects the confidentiality of the information with which it is entrusted.

Statistics Canada also has a mandate to co-ordinate and lead the national statistical system. The Agency is considered a leader, among statistical agencies around the world, in co‑ordinating statistical activities to reduce duplication and reporting burden.

More information on Statistics Canada's mandate, roles, responsibilities and programs can be found in the 2015–2016 Main Estimates and in the Statistics Canada 2015–2016 Report on Plans and Priorities.

The quarterly financial report

• should be read in conjunction with the 2015–2016 Main Estimates, the 2015-2016 Supplementary Estimates and the Quarterly Financial Report for the quarter ended June 30, 2015;
• has been prepared by management, as required by Section 65.1 of the Financial Administration Act, and in the form and manner prescribed by Treasury Board;
• has not been subject to an external audit or review.

Statistics Canada has the authority to collect and spend revenue from other government departments and agencies, as well as from external clients, for statistical services and products.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency's spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2015–2016 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

B) Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the net increase in resources available for the year, as well as actual expenditures for the quarter ended September 30.

Description for Chart 1

Chart 1 outlines the gross budgetary authorities, which represent the resources available for use for the year as of September 30.

Significant changes to authorities

During the second quarter, Statistics Canada authorities increased by $6.4 million compared with the first quarter of 2015-2016. The increase is related to funding received for the carry-forward of funds from fiscal year 2014-2015 to 2015-2016.

Total authorities available for 2015–2016 have increased by $129 million, or 25%, from the previous year, from $522.5 million to $651.5 million (Chart 1). This net increase was mostly the result of the following:

• increase for the 2016 Census of Population Program ($141.9 million), as well as for the 2016 Census of Agriculture ($7.2 million)
• decrease for the 2011 Census of Population Program ($2.8 million), as the program is complete
• decrease in the value of the carry-forward ($16.5 million).

In addition to the appropriations allocated to the Agency through the Main Estimates, Statistics Canada also has vote net authority within Vote 105, which entitles the Agency to spend revenues collected from other government departments, agencies, and external clients to provide statistical services. Vote netting authority is stable at $120 million in each of the fiscal years 2014–2015 and 2015–2016.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the second quarter increased by $10.9 million, or 4.5% from the previous year, from $245.5 million to $256.4 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 48% of its authorities by the end of the second quarter, compared with 61% in the same quarter of 2014–2015.

Table A: Variation in Departmental Expenditures by Standard Object (unaudited)
This table displays the variance of departmental expenditures by standard object between fiscal 2014-2015 and 2015-2016. The variance is calculated for year to date expenditures as at the end of the second quarter. The row headers provide information by standard object. The column headers provide information in thousands of dollars and percentage variance for the year to date variation.

Departmental Expenditures Variation by Standard Object	Q2 year-to-date variation between fiscal year 2014-2015 and 2015-2016
	$'000	%
Note: Explanations are provided for variances of more than $1 million.
(01) Personnel	17,604	7.7
(02) Transportation and communications	1,200	23.7
(03) Information	1,806	444.8
(04) Professional and special services	(1,353)	(16.4)
(05) Rentals	4,478	69.6
(06) Repair and maintenance	(187)	(28.2)
(07) Utilities, materials and supplies	(129)	(15.3)
(08) Acquisition of land, buildings and works	0	0
(09) Acquisition of machinery and equipment	2,017	431.0
(10) Transfer payments	0	0
(12) Other subsidies and payments	(13,454)	(99.0)
Total gross budgetary expenditures	11,982	4.5
Less revenues netted against expenditures
Revenues	1,036	5.6
Total net budgetary expenditures	10,946	4.5

01) Personnel: The increase was mainly the result of the arbitration award including the severance liquidation payment for interviewers and increased salary expenditures due to the cyclical nature of the Census.

02) Transportation and Communications: The increase was the result of timing differences between years for the postage purchase and travel for cost recovery projects.

03) Information: The increase was the result of the coding review of the standard object definitions and inclusions (e.g., data purchases).

04) Professional and special services: The decrease was the result of the coding review of the standard object definitions and inclusions (e.g., data purchases) and a reduction in spending on informatics services.

05) Rentals: The increase was the result of the cyclical nature of the Census (e.g., rental of building space) and additional software licenses fees related to new infrastructure and due to changes in contract payment schedules.

09) Acquisition of machinery and equipment: The increase was the result of timing differences between years for the acquisition of computer equipment.

12) Other subsidies and payments: The decrease is a result of the one-time transition payment for implementing salary payment in arrears made in the first quarter of 2014–2015 by the Government of Canada.

Revenues: The increase is primarily the result of timing differences in the receipt of funds for scheduled key deliverables.

C) Risks and uncertainties

In 2015–2016, Statistics Canada plans to continue to monitor financial pressures due to the continuation of the federal operating budget freeze, with the following actions and mitigation strategies:

• additional analysis, monitoring and validation of financial and human resources information through a monthly financial review by budget holders;
• review of monthly project dashboards in place across the Agency to monitor project issues, risks and alignment with approved budgets;
• continued realignment and reprioritization of work.

In addition, Statistics Canada uses risk management and a risk-based decision-making process to prioritize and conduct its business.  In order to effectively do so the Agency identifies its key risks and develops corresponding mitigation strategies in its Corporate Risk Profile.

D) Significant changes to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs over the last quarter. For the coming quarters, there will be notable changes in the operations due to increased activities related to the 2016 Census of Population Program.

Approval by senior officials

The original version was signed by
Wayne R. Smith, Chief Statistician
Stéphane Dufour, Chief Financial Officer
Date signed November 23, 2015

Departmental budgetary expenditures by Standard Object (unaudited) - Fiscal year 2015-2016
This table displays the departmental expenditures by standard object for the fiscal year 2015-2016. The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending March 31; expended during the quarter ended September 30; and year to date used at quarter-end 2015-2016.

	Fiscal year 2015-2016
	Planned expenditures for the year ending March 31, 2016	Expended during the quarter ended September 30, 2015	Year-to-date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	480,260	123,874	246,019
(02) Transportation and communications	38,602	3,938	6,253
(03) Information	17,340	1,097	2,212
(04) Professional and special services	56,557	4,132	6,890
(05) Rentals	25,410	7,563	10,913
(06) Repair and maintenance	7,559	389	477
(07) Utilities, materials and supplies	11,102	390	715
(08) Acquisition of land, buildings and works	0	0	0
(09) Acquisition of machinery and equipment	14,437	1,098	2,485
(10) Transfer payments	100	0	0
(12) Other subsidies and payments	84	82	140
Total gross budgetary expenditures	651,451	142,563	276,104
Less revenues netted against expenditures
Revenues	120,000	13,742	19,697
Total revenues netted against expenditures	120,000	13,742	19,697
Total net budgetary expenditures	531,451	128,821	256,407

Departmental budgetary expenditures by Standard Object (unaudited) - Fiscal year 2014-2015
This table displays the departmental expenditures by standard object for the fiscal year 2014-2015. The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending March 31; expended during the quarter ended September 30; and year to date used at quarter-end 2014-2015.

	Fiscal year 2014-2015
	Planned expenditures for the year ending March 31, 2015	Expended during the quarter ended September 30, 2014	Year-to-date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	401,121	116,514	228,415
(02) Transportation and communications	31,812	2,978	5,053
(03) Information	3,092	284	406
(04) Professional and special services	43,981	5,242	8,243
(05) Rentals	16,214	3,009	6,435
(06) Repair and maintenance	8,683	586	664
(07) Utilities, materials and supplies	16,340	474	844
(08) Acquisition of land, buildings and works	0	0	0
(09) Acquisition of machinery and equipment	1,017	280	468
(10) Transfer payments	0	0	0
(12) Other subsidies and payments	188	191	13,594
Total gross budgetary expenditures	522,448	129,558	264,122
Less revenues netted against expenditures
Revenues	120,000	5,710	18,661
Total revenues netted against expenditures	120,000	5,710	18,661
Total net budgetary expenditures	402,448	123,848	245,461

Statement of Authorities (unaudited) - Fiscal year 2015-2016
This table displays the departmental authorities for the fiscal year 2015-2016. The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending March 31; used during the quarter ended September 30; and year to date used at quarter-end for 2015-2016.

	Fiscal year 2015-2016
	Total available for use for the year ending March 31, 2016*	Used during the quarter ended September 30, 2015	Year to date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 105 — Net operating expenditures	462,373	111,552	221,868
Statutory authority — Contribution to employee benefit plans	69,078	17,269	34,539
Total budgetary authorities	531,451	128,821	256,407

Statement of Authorities (unaudited) - Fiscal year 2014-2015
This table displays the departmental authorities for the fiscal year 2014-2015. The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending March 31; Used during the quarter ended September 30; and year to date used at quarter-end for 2014-2015.

	Fiscal year 2014-2015
	Total available for use for the year ended March 31, 2015*	Used during the quarter ended September 30, 2014	Year to date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 105 — Net operating expenditures	345,637	109,645	217,055
Statutory authority — Contribution to employee benefit plans	56,811	14,203	28,406
Total budgetary authorities	402,448	123,848	245,461

Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the 2013 Survey of Service Industries. If you need more information, please call the Statistics Canada Help Line at the number below.

Help Line: 1-800-972-9692

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Statistics Canada will use information from this survey for statistical purposes.

Table of contents

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Business activity
Reporting period information
Revenue
Expenses
Industry characteristics
Sales by type of client
International transactions
General information
Data-sharing agreements
Record linkages

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Business activity

The description on file for this business comes from the North American Industrial Classifications System (NAICS). This database contains a limited number of activity classifications. The classifications on file might be applicable for this business, even if it is not exactly how you would describe this business’s main activity.

By selecting "Yes, this is the main activity.", you indicate that the description is applicable, and it describes the main economic activity which typically generates the most revenue for this business.

By selecting "No, this is not the main activity.", you indicate that this description is not applicable as a main or a secondary activity of this business. You will be given a chance to describe this business’s main activity.

If none of the above activities describes your main source of revenue, please call 1-800 972 9692 for further instructions.

Reporting period information

Here are twelve common fiscal periods that fall within the targeted dates:

• May 1, 2012 to April 30, 2013
• June 1, 2012 to May 31, 2013
• July 1, 2012 to June 30, 2013
• August 1, 2012 to July 31, 2013
• September 1, 2012 to August 31, 2013
• October 1, 2012 to September 30, 2013
• November 1, 2012 to October 31, 2013
• December 1, 2012 to November 30, 2013
• January 1, 2013 to December 31, 2013
• February 1, 2013 to January 31, 2014
• March 1, 2013 to February 28, 2014
• April 1, 2013 to March 31, 2014

Here are other examples of fiscal periods that fall within the required dates:

• September 18, 2012 to September 15, 2013 (e.g., floating year-end)
• June 1, 2013 to December 31, 2013 (e.g., a newly opened business)

Revenue

1. Sales of goods and services (e.g., fees, commissions, services revenue)

Report net of returns and allowances.
Sales of goods and services are defined as amounts derived from the sale of goods and services (cash or credit), falling within a business’s ordinary activities. Sales should be reported net of trade discount, value added tax and other taxes based on sales.

Include: Sales from Canadian locations (domestic and export sales); Transfers to other business units or a head office of your firm. Exclude: Transfers into inventory and consignment sales; Federal, provincial and territorial sales taxes and excise duties and taxes; intercompany sales in consolidated financial statements.

2. Rental and leasing revenue

Include: Rental or leasing of apartments, commercial buildings, land, office space, residential housing, investments in co-tenancies and co-ownerships, hotel or motel rooms, long and short term vehicle leasing, machinery or equipment, storage lockers, etc.

3. Commissions

Include: Commissions earned on the sale of products or services by businesses such as advertising agencies, brokers, insurance agents, lottery ticket sales, sales representatives, and travel agencies – (compensation could also be reported under this item (for example, compensation for collecting sales tax).

4. Subsidies (including grants, donations and fundraising)

Include: Non-repayable grants, contributions and subsidies from all levels of government; Revenue from private sector (corporate and individual) sponsorships, donations and fundraising.

5. Royalties rights, licensing and franchise fees

A royalty is defined as a payment received by the holder of a copyright, trademark or patent.

Include revenue received from the sale or use of all intellectual property rights of copyrighted materials such as musical, literary, artistic or dramatic works, sound recordings or the broadcasting of communication signals.

Include: Dividend income; Dividends from Canadian sources; Dividends from foreign sources; Patronage dividends. Exclude: Equity income from investments in subsidiaries or affiliates.

7. Interest

Include: Investment revenue; Interest from foreign sources; Interest from Canadian bonds and debentures; Interest from Canadian mortgage loans; Interest from other Canadian sources. Exclude: Equity income from investments in subsidiaries or affiliates.

8. Other revenue (please specify)

Include: Amounts not included in questions (1) to (7). intracompany transfers

9. Total revenue

(sum of questions 1 to 8)

Expenses

1. Cost of goods sold

Many business units distinguish their costs of materials from their other business expenses (selling, general and administrative). This item is included to allow you to easily record your costs/expenses according to your normal accounting practices.

Include: Cost of raw materials and/or goods purchased for re-sale – net of discounts earned on purchases; Freight in and duty.

1. opening inventories

2. purchases

Include: raw material, goods purchased for resale and non-returnable containers
Exclude: change in inventories

3. closing inventories

4. cost of goods sold

(opening inventories plus purchases minus closing inventories)

2. Employment costs and expenses

(for all employees who were issued a T4):

1. Salaries, wages and commissions

Please report all salaries and wages (including taxable allowances and employment commissions as defined on the T4 – Statement of Remuneration Paid) before deductions for this reporting period.

Include: Vacation pay; Bonuses (including profit sharing); Employee commissions; Taxable allowances (e.g., room and board, vehicle allowances, gifts such as airline tickets for holidays); Severance pay.
Exclude: All payments and expenses associated with casual labour and outside contract workers (report these amounts at sub-question (3) - Sub-contracts).

2. Employee benefits

Include contributions to: Health plans; Insurance plans; Employment insurance; Pension plans; Workers’ compensation; Association dues; Contributions to any other employee benefits such as child care and supplementary unemployment  benefit (SUB) plans; Contributions to provincial and territorial health and education payroll taxes.

3. Sub-contracts

Sub-contract expense refers to the purchasing of services from outside of the company rather than providing them in-house.

Include: Hired casual labour and outside contract workers; Custom work and contract work; Sub-contract and outside labour; Hired labour.

4. Research and development

Expenses from activities conducted with the intention of making a discovery that could either lead to the development of new products or procedures, or to the improvement of existing products or procedures.

5. Professional and business fees 

Include: Legal services; Accounting and auditing fees; Consulting fees; Education and training fees; Appraisal fees; Management and administration fees; Property management fees; Information technology (IT) consulting and service fees (purchased); Architectural fees; Engineering fees; Scientific and technical service fees; Other consulting fees (management, technical and scientific); Veterinary fees; Fees for human health services; Payroll preparation fees; All other professional and business service fees.
Exclude: Service fees paid to Head Office (report at sub-question (21) - All other expenses).

6. Utilities 

Utility expenses related to operating your business unit such as water, electricity, gas, heating and hydro.

Include: Diesel, fuel wood, natural gas, oil and propane; Sewage. 
Exclude: Energy expenses covered in your rental and leasing contracts; Telephone, Internet and other telecommunications; Vehicle fuel (report at sub-question (21) - All other expenses).

7. Office and computer related expenses

Include: Office stationery and supplies, paper and other supplies for photocopiers, printers and fax machines; Postage and courier (used in the day to day office business activity); Diskettes and computer upgrade expenses; Data processing.
Exclude: Telephone, Internet and other telecommunication expenses. (report this amount at sub-question (8) - Telephone, Internet and other telecommunication expenses).

8. Telephone, Internet and other telecommunications

Include: Internet; Telephone and telecommunications; Cellular telephone; Fax machine; Pager.

9. Business taxes, licenses and permits

Include: Property taxes paid directly and property transfer taxes; Vehicle license fees; Beverage taxes and business taxes; Trade license fees; Membership fees and professional license fees; Provincial capital tax.

10. Royalties, franchise fees and memberships

Include: Amounts paid to holders of patents, copyrights, performing rights and trademarks; Gross overriding royalty expenses and direct royalty costs; Resident and non-resident royalty expenses; Franchise fees.
Exclude: Crown royalties

11. Crown charges

Federal or Provincial royalty, tax, lease or rental payments made in relation to the acquisition, development or ownership of Canadian resource properties.  

Include: Crown royalties; Crown leases and rentals; Oil sand leases; Stumpage fees.

12. Rental and leasing

Include: Lease rental expenses, real estate rental expenses, condominium fees and equipment rental expenses; Motor vehicle rental and leasing expenses; Studio lighting and scaffolding; Machinery and equipment rental expenses; Storage expenses; Road and construction equipment rental; Fuel and other utility costs covered in your rental and leasing contracts.

13. Repair and maintenance

Include: Buildings and structures; Machinery and equipment; Security equipment; Vehicles; Costs related to materials, parts and external labour associated with these expenses; Janitorial and cleaning services and garbage removal.

14. Amortization and depreciation

Include: Direct cost depreciation of tangible assets and amortization of leasehold improvements; Amortization of intangible assets (e.g., amortization of goodwill, patents, franchises, copyrights, trademarks, deferred charges, organizational costs).

15. Insurance

Insurance recovery income should be deducted from insurance expenses.

Include: Professional and other liability insurance; Motor vehicle and property insurance; Executive life insurance; Bonding, business interruption insurance and fire insurance.

16. Advertising, marketing, promotion, meals and entertainment

Include: Newspaper advertising and media expenses; Catalogues, presentations and displays; Tickets for theatre, concerts and sporting events for business promotion; Fundraising expenses; Meals, entertainment and hospitality purchases for clients.

17. Travel, meetings and conventions

Include: Travel expenses; Meeting and convention expenses, seminars; Passenger transportation (e.g., airfare, bus, train, etc.); Accommodations; Travel allowance and meals while travelling; Other travel expenses.

18. Financial services 

Include: Explicit service charges for financial services; Credit and debit card commissions and charges; Collection expenses and transfer fees; Registrar and transfer agent fees; Security and exchange commission fees; Other financial service fees.
Exclude: Interest expenses (report at sub-question (19) - Interest expense).

19. Interest expense

Report the cost of servicing your company’s debt.

Include: Interest; Bank charges; Finance charges; Interest payments on capital leases; Amortization of bond discounts; Interest on short-term and long-term debt, mortgages, bonds and debentures.

20. Other non-production-related costs and expenses

Include: Charitable donations and political contributions; Bad Debt expense; Loan losses; Provisions for loan losses (minus Bad debt recoveries); Inventory adjustments

21. All other costs and expenses (including intracompany expenses)

Include:
Production costs; Pipeline operations, drilling, site restoration; Gross overriding royalty; Other producing property rentals; Well operating, fuel and equipment; Other lease rentals; Other direct costs; Equipment hire and operation; Log yard expense, forestry costs, logging road costs; Freight in and duty; Overhead expenses allocated to costs of sales; Other expenses; Cash over/short (negative expense); Reimbursement of parent company expense; Warranty expense; Recruiting expenses; General and administrative expenses; Interdivisional expenses; Interfund transfer (minus expense recoveries); Exploration and Development (including prospect/geological, well abandonment & dry holes, exploration expenses, development expenses); Amounts not included in sub-questions (1) to (20) above.

22. Total expenses

(sum of lines 1 to 21)

Industry characteristics

Please provide a breakdown of your sales and services revenue, where applicable.
Amounts should be reported net of trade discount, value added tax and other taxes based on sales.

Include:
• Sales from Canadian locations.

Exclude:
• Grants and subsidies;
• Donations and fundraising;
• Royalties, rights, licensing and franchise fees;
• Investment income.

1. Admissions to live performances and events presented by your business

Include:
• Admissions through sale of general public tickets and seasonal subscriptions;
• Bundled admission packages that include food and beverage service, backstage passes, etc.;
• Personal seat licenses and box leases;
• Admissions to live performances in which the admission takes the form of a cover charge;
• Membership fees paid primarily for the right of admission to performances.

Exclude:
• Payments received for events and performances owned/produced/presented by other establishments using your facilities; please report these amounts in this section, at question 2;
• Contract production; please report this amount in this section, at question 4.

2. Facility rental revenue

Please report your share of box office receipts for events or performances that were owned/produced/ presented by others using or renting your facilities.

3. Rental revenue from traveller accommodations?

4. Contract production

Fees earned by individuals, companies or teams for the production of live performances, sports or racing events under contract to promoters, venue owners or others. The contracts will specify the type of payment received by the performers, artists, companies, athletes or teams, for example a flat rate and/or a percentage of admission revenues. Contracts may also specify the disposition of any intellectual property rights arising from the performance.

Exclude:
• Contract production of literary, dramatic, musical and artistic works, sound recordings and communication signals; please report these amounts in this section, at question 15;
• Licensing of copyrights relating to a live performance; please report these amounts in this section, at question 15;
• Technical (non-performance) services; please report this amount in this section, at question 7.

5. Professional fees and commission for career management and presentation services for artists, athletes, entertainers and others   

Acting on behalf of artists, athletes, entertainers and other public figures in a wide range of activities that enhance the client's career.           

Include:
• Negotiating contracts and bookings performances and public appearances.

6. Event management services

Planning, organizing, marketing and managing a live sports or performing arts event on behalf of others including venue owners, performers, etc.

7. Technical artistic services

Providing artistic technical support services, such as backstage services and post-production services.

Include:
• Lighting, key grip and set placement and removal;
• Editing, visual effects, copying, captioning, adding music and foreign language dubbing.

8. Receipts from gambling

(e.g., wagering, gambling machines, lottery tickets, pari-mutuel, Internet gambling and bookmaking)

9. Advertising revenue

Revenue obtained by providing services that attract attention to a product, business, cause, etc.

Include:
• The provision of display space on various surfaces such as billboards;
• Agent services involved in buying and selling space or time for advertising messages;
• The sale of venue naming rights, sponsorship rights, endorsement services and exclusivity rights.

10. Sales of food and non-alcoholic beverages

Include:
• Prepared meals;
• Packaged food;
• Vending machine sales.

11. Sales of alcoholic beverages

12. Sales of merchandise

Revenue obtained from parts and materials charged in repair work as well as from the sales of all items other than food or beverages.

Include:
• Recreational and sports equipment and accessories;
• Oil and gasoline;
• Clothing;
• Arts and crafts;
• Magazines.

13. Other revenue from sales and services – please specify:

14. Total sales of goods and services

(sum of questions 1 to 13)

Royalties, rights, licensing and franchise fees

15. Licensing of rights to use copyrighted works and trademarks

Licensing the rights to use copyrighted intellectual property and trademarks, such as logos.
Licenses authorize the licensee to exploit the copyrighted work, for example: to reproduce or perform a literary or musical piece of work by making a sound or video recording of the piece, to rent a computer program to make a recording of a particular performance. A license may authorize some or all of these rights.
Include licenses to use:
• Literary works such as book manuscripts and computer programs;
• Dramatic works such as films, videos, plays, screenplays and scripts;
• Musical works;
• Artistic works such as paintings and photographs;
• Actor’s or singer’s performances;
• Broadcast communication signals;
• Sound recordings.

16. Broadcast and other media rights

Granting the right of access (on a fee, royalty, or other basis) to a sporting event, facility or activity for the purpose of commercially exploiting sounds, images and other information of the event, facility or activity. The contracts define the type of exploitation permitted and may specify the ownership of intellectual property rights relating to the sounds, images and other information.

17. Other royalties, rights, licensing and franchise fees – please specify:

18. Total royalties, rights, licenses and franchise fees

(sum of questions 15 to 17)

Attendance

Live sports and racing events and Live performing, arts performances, festivals and fairs

19. Presented by your business

Please report attendance numbers for presentations that are produced/owned by your establishment.

20. Presented by others using your facilities (such as rentals)

Please report attendance numbers for presentations that are produced/owned by another establishment.

Live performing arts performances, festivals and fairs

21. Presented by your business

22. Presented by others using your facilities

(such as rentals)

Sales by type of client

This section is designed to measure which sector of the economy purchases your services.
Please provide a percentage breakdown of your sales by type of client.
Please ensure that the sum of percentages reported in this section equals 100%.

1. Clients in Canada

(a) Individuals and households
Please report the percentage of sales to individuals and households who do not represent the business or government sector.

(b) Businesses
Percentage of sales sold to the business sector should be reported here.
Include:
• Sales to Crown corporations.

(c) Governments, not-for-profit organizations and public institutions (e.g., hospitals, schools)
Percentage of sales to federal, provincial, territorial and municipal governments should be reported here.
Include:
• Sales to hospitals, schools, universities and public utilities.

2. Clients outside Canada

Please report the percentage of total sales to customers or clients located outside Canada including foreign businesses, foreign individuals, foreign institutions and/or governments.
Include:
• Sales to foreign subsidiaries and affiliates.

International transactions

1. This section is intended to measure the value of international transactions on goods, services, royalties and licenses fees. It covers imported services and goods purchased outside Canada as well as the value of exported services and goods to clients/customers outside Canada. Please report also royalties, rights, licensing and franchise fees paid to and/or received from outside Canada. Services cover a variety of industrial, professional, trade and business services.

General information

Data-sharing agreements

To reduce respondent burden, Statistics Canada has entered into data-sharing agreements with provincial and territorial statistical agencies and other government organizations, which have agreed to keep the data confidential and use them only for statistical purposes. Statistics Canada will only share data from this survey with those organizations that have demonstrated a requirement to use the data.

Section 11 of the Statistics Act provides for the sharing of information with provincial and territorial statistical agencies that meet certain conditions. These agencies must have the legislative authority to collect the same information, on a mandatory basis, and the legislation must provide substantially the same provisions for confidentiality and penalties for disclosure of confidential information as the Statistics Act. Because these agencies have the legal authority to compel businesses to provide the same information, consent is not requested and businesses may not object to the sharing of the data.

For this survey, there are Section 11 agreements with the provincial and territorial statistical agencies of Newfoundland and Labrador, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, and the Yukon.

The shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Section 12 of the Statistics Act provides for the sharing of information with federal, provincial or territorial government organizations. Under Section 12, you may refuse to share your information with any of these organizations by writing a letter of objection to the Chief Statistician and returning it with the completed questionnaire. Please specify the organizations with which you do not want to share your data.

For this survey, there are Section 12 agreements with the statistical agencies of Prince Edward Island, the Northwest Territories and Nunavut.

For agreements with provincial and territorial government organizations, the shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Record linkages

To enhance the data from this survey and to minimize the reporting burden, Statistics Canada may combine it with information from other surveys or from administrative sources.

Please note that Statistics Canada does not share any individual survey information with the Canada Revenue Agency.

Please visit our website at www.statcan.gc.ca/survey-enquete/index-eng.htm or call us at 1-800-972-9692 for more information about these data-sharing agreements.

Thank you!