Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the 2014 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

Text begins

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, 2013 to April 30, 2014
• June 1, 2013 to May 31, 2014
• July 1, 2013 to June 30, 2014
• August 1, 2013 to July 31, 2014
• September 1, 2013 to August 31, 2014
• October 1, 2013 to September 30, 2014
• November 1, 2013 to October 31, 2014
• December 1, 2013 to November 30, 2014
• January 1, 2014 to December 31, 2014
• February 1, 2014 to January 31, 2015
• March 1, 2014 to February 28, 2015
• April 1, 2014 to March 31, 2015

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

• September 18, 2013 to September 15, 2014 (e.g., floating year-end)
• June 1, 2014 to December 31, 2014 (e.g., a newly opened business)

Revenue

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

Include: sales, commissions, rental and leasing revenue if they are this business’s primary revenue source.

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

Report only if this is a secondary revenue source. If rental and leasing are your primary revenue source, report in question 1.

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

Report only if this is a secondary revenue source. If commissions are your primary revenue source, report in question 1.

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, fundraising and sponsorships)

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.

6. Dividends

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 - specify (including intracompany transfers)

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

9. Total revenue

The sum of sub-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 resale – net of discounts earned on purchases; Freight in and duty.

1. opening inventories

2. purchases

Include: raw materials, 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

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) - Subcontracts).

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. Subcontracts

Subcontract 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; Subcontract and outside labour; Hired labour.

4. Research and development fees

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); Computer and peripherals 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 sub-questions 1 to 21)

Industry characteristics

Please exclude federal, provincial or territorial sales tax collected for remittance to a government agency.

1. Rental income - residential properties

Include:

• Apartments;
• Single family homes;
• Semi-detached or row houses.

Rental or leasing of residential space in houses, for use as the principal residence of a household

Houses are accommodation units in which each housing unit is separated from its neighbours by a ground-to-roof wall with no units either above or below. Includes single detached houses and attached houses such as side-by side town houses, row houses and doubles. May include additional facilities, such as parking and recreational amenities.

Exclude:

• Rental of land;
• Renting space for use as temporary accommodation, such as hotel rooms, cottages and camp sites.

Rental or leasing of residential space in apartments and similar housing units, for use as the principal residence of a household

These are units in which each housing unit is not separated from its neighbours by a ground to-roof wall and/or adjoins units constructed above or below, including apartments, duplexes, triplexes. May also include additional facilities, such as parking and recreational amenities.

Exclude:

• Rental of mobile homes, motor homes, and rooms in boarding houses and dormitories, when used as principal residences;
• Renting space for use as temporary accommodation, such as hotel rooms and camp sites.

2. Rental income - commercial / non-residential properties

Include:

• Shopping centers;
• Plazas;
• Stores;
• Office buildings;
• Factories;
• Warehouses;
• Recreational spaces;
• Convention spaces in hotels;
• Convention centres.

Rental or leasing of buildings or space within buildings or other facilities, for office and professional uses

Exclude:

• Rental of space for meetings, conventions and similar events;
• Rental of parking spaces.

Renting or leasing of buildings or space within buildings or other facilities, for commercial uses such as stores, restaurants, cinemas, bank branches and beauty salons

Include:

• Rental of sites on a “concession” basis at entertainment, sports and other venues and rental of commercial space in hotel and office building lobbies.

Exclude:

• Providing a location for the placement of vending machines.

Rental or leasing of buildings or space within buildings or other facilities, for use in manufacturing, storage, distribution and similar industrial activities

Include:

• Rental of space for research activities. Includes rental of space for these uses in industrial, manufacturing and research parks.

3. Rental income mini-warehouses and self-storage units

Include:

• Rooms;
• Compartments;
• Lockers;
• Containers;
• Outdoor spaces.

4. Other residential real estate rental

Rental or leasing of land for residential uses

Property with buildings or other structures is treated as land if the value of the land is greater than the value of the structures. Include rental of serviced lots in trailer and mobile home parks.

Other rental of residential space (e.g., mobile homes, motor homes, houseboats, rooms in boarding houses and dormitories when used as a principal residence)

5. Other commercial/non-residential real estate rental

Rental or leasing of land for non-residential uses

Property with buildings or other structures is treated as land if the value of the land is greater than the value of the structures. Include rent paid for the right to exploit inland surface waters for recreational or other purposes, including fishing.

Exclude:

• Rental of non-residential buildings and other facilities, including engineering structures;
• Rent, royalties or other payments paid for the right to explore or exploit deposits of minerals or fossil fuels;
• Providing a location for the placement outdoors of coin-operated machines such as children’s mechanical rides;
• Rental of parking spaces.

Other rentals of non-residential/commercial space (for banquets, parties, and social events, business conventions, theatres, sports venues, auditoriums, stadiums etc.).

6. Property management services

Please report revenue generated by managing real estate properties on behalf of the property owners.

Management of residential buildings, such as houses and apartments, on behalf of property owners

This service may comprise activities such as: negotiation of lease agreements, screening prospective tenants, collection of rental payments, tenant relationship, administration of contracts for property services (e.g., cleaning, maintenance and security), contract renewal or recovery of the building at the end of the renting contract, etc.

Management of non-residential buildings, such as office, retail and industrial space, on behalf of property owners

This service may comprise activities such as: negotiation of lease agreements, screening prospective tenants, collection of rental payments, tenant relationship, administration of contracts for property services (e.g., cleaning, maintenance and security), contract renewal or recovery of the building at the end of the renting contract, etc.

Land property management on behalf of property owners

This service may comprise activities such as: negotiation of lease agreements, screening prospective tenants, collection of rental payments, tenant relationship, administration of contracts for property services (e.g., cleaning, maintenance and security), contract renewal or recovery of the land at the end of the renting contract, etc.

7. Revenue from goods purchased for resale as is (drinks, food, games)

Include:

• Soft drinks;
• Food;
• Games;
• Laundry detergent, etc.

8. Other related sales

Include:

• Coin-operated laundry services;
• Parking;
• Bad debt recoveries;
• Operating subsidies;
• Any other operating revenue not reported above.

9. Total sales

The sum of amounts reported at question 1 to 8.

10. Percentage of total revenue from real estate investment trusts

Please report your percentage of total revenue from real estate investment trusts.

Selected expenditure information

Please report expenses excluding the portion of federal, provincial or territorial sales tax refunded by government. If your bookkeeping practices make this impossible, please indicate which refunds are included.

11. Property management fees paid

Please report expenses generated by hiring a property management firm to manage an owner’s real estate property.

12. Real estate commissions paid

Please report commissions paid to an agent or middleman for providing the service to the vendor or purchaser of bringing together the two parties to a transaction.

13. Value of inducements to tenants

Includes:

• Leasehold improvements;
• Loan interest;
• Free rent;
• Paid moving expenses.

Please only report the amount of expenses you capitalized during the reporting period.

14. Transfer taxes and lot levies paid

Please report expenses related to transfer taxes and lot levies.

15. Property taxes paid

Please report taxes paid on vacant land and buildings.

16. Mortgage interest paid

Please report the interest portion of the mortgage payments.

Excludes:

• Interest expenses related to bank loans.

Property information

17. Number of buildings owned and/or managed at year end

Please report the number of buildings you owned or managed at the end of the reporting period.

18. Number of rental units owned and/or managed at year end

Please report the number of units you owned or managed at the end of the reporting period.

19. Square feet rented or leased (commercial/non-residential only)

Please report the number of square feet you rented or leased at the end of the reporting period.

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%.

Include:

• Sales to Crown corporations.

Percentage of sales to federal, provincial, territorial and municipal governments should be reported here.

Include:

• Sales to hospitals, schools, universities and public utilities.

Please report the share 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

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.

1. Clients in Canada

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

   Percentage of sales sold to the business sector should be reported here.

   1. Individuals and households
   2. Businesses
   3. Governments, not-for-profit organizations and public institutions (e.g., hospitals, schools)
2. Clients outside Canada

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 Industry Portfolio.

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

The Agency’s mandate derives primarily from the Statistics Act. The act requires that Statistics Canada collect, compile, analyze and publish statistical information on the economic, social and general conditions of the country and its people. It also requires that Statistics Canada conduct a census of population and a census of agriculture every fifth year, and protect the confidentiality of the information with which it is entrusted.

Statistics Canada is also mandated to coordinate and lead the national statistical system. The Agency is considered a leader among statistical agencies around the world in coordinating statistical activities to reduce duplication and reporting burden.

Further information on Statistics Canada’s mandate, roles, responsibilities and programs can be found in the 2012-2013 Main Estimates and in the Statistics Canada 2012-2013 Report on Plans and Priorities.

The quarterly financial report

• should be read in conjunction with the 2012-2013 Main Estimates, the Quarterly Financial Report for the quarter ended June 30, 2012, and Canada’s Economic Action Plan 2012 (Budget 2012)
• has been prepared by management as required by Section 65.1 of the Financial Administration Act and in the form and manner prescribed by the 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 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 2012-2013 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.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012-2013, frozen allotments will be established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.

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 decrease in resources available for the year and actual expenditures for the quarter ended September 30.

Chart 1: Comparison of gross budgetary authorities and expenditures as of September 30, 2011 and September 30, 2012, in thousands of dollars

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 $37.7 million. This is related to the carry-forward of funds from fiscal year 2011-2012 to fiscal year 2012-2013.

Total authorities available for the year have decreased $279.7 million, or 31.4% from the previous year, from $892.1 million to $612.4 million (Chart 1). This net decrease is mostly due to the completion of collection activities of the 2011 Census of Population and National Household Survey ($248.5 million) and the 2011 Census of Agriculture ($13.3 million). Fiscal year 2011-2012 was the peak year for census-related activities.

The primary census-related activities for 2012-2013 are

• conducting evaluation studies;
• continuing data certification and processing activities for the National Household Survey;
• disseminating major data releases, data quality studies, and evaluation of results for the Census of Population and the Census of Agriculture; and
• linking the 2011 Census of Agriculture and the 2011 National Household Survey to produce a database of socioeconomic information on farm operators and their families.

The transfer of funds to Shared Services Canada also resulted in a funding decrease of $36.2 million. Funds were transferred to Shared Services Canada to pool existing resources from across the government to consolidate and transform IT infrastructure for the Government of Canada.

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 for providing statistical services. Vote netting authority is stable for 2011 2012 and 2012-2013 at $120 million.

Significant changes to expenditures

Total expenditures recorded for the second quarter, ending September 30, 2012, decreased $100.2 million, or 40.4%, from the same quarter of the previous year, from $248.1 million to $147.9 million, according to Table A: Departmental budgetary expenditures by Standard Object.

Most of the decrease in spending is due to the completion of important census-related activities, such as data collection and capturing, which entails the majority of census expenditures. Also, Statistics Canada has spent approximately 45% of its authorities by the end of the second quarter, compared with 59% in the previous year.

Table A: Departmental expenditures by Standard Object (unaudited)

Departmental Expenditures by Standard Object	Year-to-year variation, Q2 2011-12 to Q2 2012-13		Cumulative year-to-date variation
	000$	%	000$	%
(01) Personnel	-25,642	-15.7%	-54,364	-17.3 %
(02) Transportation and communications	-7,022	-70.6%	-33,495	-85.2%
(03) Information	-2,980	-96.2%	-8,904	-97.9%
(04) Professional and special services	-58,612	-95.2%	-140,123	-96.9%
(05) Rentals	-1,520	-30.7%	- 419	-6.8%
(06) Repair and maintenance	-2,043	-94.8%	-5,043	-97.4%
(07) Utilities, materials and supplies	- 727	-71.0%	- 805	-52.1%
(08) Acquisition of land, building and works	0	0.0%	0	0.0%
(09) Acquisition of machinery and equipment	-1,550	-78.3%	-1,929	-78.3%
(10) Transfer payments	- 134	134.0%	- 134	134.0%
(12) Other subsidies and payments	6	145.2%	38	230.0%
Total gross budgetary expenditures	-100,224	-40.4%	-245,178	-46.9%
Less Revenues netted against expenditures:
Revenues	8,564	77.6%	6,444	35.4%
Total net budgetary expenditures	-108,788	-45.9%	-251,622	-49.9%
Note: For variances of more than $1 million, an explanation is provided.

01) Personnel: Additional public servants were hired to conduct census-related activities in 2011-2012. The decrease in costs in 2012-2013 is caused by the completion of collection activities, which entails the majority of census expenditures. In addition, the transfer of employees to Shared Services Canada and the impact of cost-containment reductions also contributed to the overall decrease in salary costs. These decreases offset some of the non-recurring costs that have been disbursed in direct relation to the Workforce Adjustment Directive.

02) Transportation and Communication: Additional costs in postage and transportation were incurred in 2011-2012 for census-related activities such as the delivery and return of census questionnaires. The completion of these activities explains the reduction in costs in 2012-2013. The transfer of telecommunication operations to Shared Services Canada also resulted in a cost decrease.

03) Information: In 2011-2012, the census communications program was implemented to support census collection activities, resulting in advertising and printing costs for the Agency. The decrease in costs in 2012-2013 is the result of the completion of this activity.

04) Professional and Special Services: In 2011-2012, approximately 35,000 field staff were recruited and trained to follow up with non-response. The field-collection activities in 2011 also included the pay for census enumerators and advances. The completion of collection activities explains the reduction in costs in 2012-2013.

05) Rentals: A change in the Government-wide Chart of Accounts now requires “Software licenses/maintenance” expenditures to be reported under Standard Object 05 instead of Standard Object 06 — Repairs and maintenance. This change resulted in an increase of expenditures in Standard Object 05. However, this increase is offset by costs incurred to rent building space in 2011-2012 for census collection activities in remote areas. The decreased costs in 2012-2013 are the result of the completion of this activity.

06) Repairs and Maintenance: A change in the Government-wide Chart of Accounts now requires expenditure type “Software licenses/maintenance” to be reported under Standard Object 05 – Rentals instead of Standard Object 06. This change in the Chart of Accounts, combined with Shared Services Canada now taking responsibility for a portion of these expenditures, resulted in the decreased expenditures in Standard Object 06. Furthermore, additional software-maintenance costs to support data collection, processing and dissemination systems were incurred in 2011-2012 for census-related activities. This also contributed to the decrease in 2012-2013; these activities are now complete.

09) Acquisition of machinery and equipment: The decrease is because Shared Services Canada assumed responsibility for purchasing informatics equipment, which falls under Standard Object 09.

The increase in Revenues is primarily because of funds that Statistics Canada receives under a census cost-sharing agreement with another government department; in 2012-2013, those funds were received six months later than they were in 2011-2012.

C) Risks and uncertainties

The pressures created by cumulative budgetary reductions will make 2012-2013 a challenging year for Statistics Canada—the challenge being to remain within appropriations while delivering the core program. Statistics Canada plans to meet these challenges through the following actions and mitigation strategies:

• governance around financial forecasting practices was increased to ensure the Agency remains within its appropriations;
• the level of approval for signing authority on non-salary expenditures has been reviewed, and a temporary overlay on top of the Delegation of Financial Signing Authority is in use to prioritize non-salary spending;
• monthly project dashboards are in place across the Agency to monitor project issues, risks and alignment with approved budgets; and
• as the workforce is reduced, reorganization and reprioritization of work and teams will occur and knowledge will be transferred.

D) Significant changes to operations, personnel and programs

2011 Census of Population and the National Household Survey

In 2012-2013, Statistics Canada is continuing to disseminate its remaining major census data releases, data quality studies, and evaluation of the National Household Survey results. Census of Population releases take place in May, September and October 2012. Data certification and processing activities for the National Household Survey are also progressing as planned, and releases are scheduled from May to August 2013. The main release of the 2011 Census of Agriculture took place on May 10, 2012. More Census of Agriculture products are to be released beginning in September 2012. Data quality studies for the 2011 Census and the National Household Survey will continue through 2012-13.

This contrasts with last year, when the program focused on collection operations and processing returns for the 2011 Census of Population and National Household Survey.

Shared Services Canada

On August 4, 2011, the Government of Canada announced measures to streamline and identify savings in information technology through Shared Services Canada. Resources associated with email delivery and with data centre and network services are being transferred to this new entity. Statistics Canada is one of 44 departments and agencies selected for this new initiative. Statistics Canada transferred 178 positions.

Pursuant to s. 31.1 of the Financial Administration Act and Order-in-Council P.C. 2011-1297 effective November 15, 2011, $36.2 million annually is deemed to have been appropriated to Shared Services Canada on an on-going basis starting in fiscal year 2012-2013, resulting in a reduction for the same amount from Statistics Canada, Vote 105.

E) Budget 2012 implementation

This section provides an overview of the savings measures announced in Budget 2012 that will be implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and, modernize and reduce the back office.

Statistics Canada’s savings target as announced in Budget 2012 Economic Action Plan is $33.9 million by 2014-2015. This reduction will be implemented progressively, beginning with $8.3 million on April 1, 2012, rising to $18.3 million on April 1, 2013, in order to achieve the full reduction by April 1, 2014. In order to meet this target, Statistics Canada has focused resources where they are most needed.

The savings incurred through these program adjustments represent moderate reductions in the production of statistics to support development, administration and evaluation of policy, while continuing to meet the public’s highest priority needs. In some cases, the information will continue to be available in a different format. A full list of program adjustments is available online.

Cost-recovery activities

Statistics Canada is also providing statistical services and products to federal departments and agencies on a cost-recovery basis. Reductions being made in other departments may have a further impact on Statistics Canada.

Workforce Adjustment

A human resources management framework was developed to manage the required adjustments to the Agency’s workforce, which will be further guided by the provisions of the relevant collective agreements, the Workforce Adjustment Directive and the Career Transition Plan for Executives. Statistics Canada is committed to proceeding with these adjustments in a manner that is respectful, fair and transparent at all times.

Approval by senior officials

The original version was signed by
Wayne Smith, Chief Statistician
Michel Cloutier, Chief Financial Officer

Statement of authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)