Analysis of trends in spending and human resources

Departmental spending trend

ESDC expenditures on programs and services total $122.8 billion, of which $116.5 billion, or approximately 95 percent, directly benefits Canadians through Employment Insurance (EI), the Canada Pension Plan (CPP), Old Age Security (OAS) and other statutory transfer payment programs. Departmental expenditures were $1.9 billion in voted grants and contributions and $2.2 billion for Employment Insurance Part II.

Description of Figure 1

Category	Fiscal year 2016 to 2017 actual spending
	Amount in millions of dollars	Percentage
Old Age Security / Guaranteed Income Supplement / Allowance	48,201.8	39.3%
Canada Pension Plan (CPP)	42,502.1	34.6%
Employment Insurance (EI)	20,711.1	16.9%
Universal Child Care / Canada Student Loans / Other Statutory Payments	5,039.2	4.1%
Gross Operating Expenditures	3,171.8	2.6%
Voted Grants and Contributions	1,878.8	1.5%
Other - Passport Services, Workers' Compensation and EI/CPP charges	1,250.0	1.0%
Consolidated total	122,754.8	100.0%

Employment and Social Development Canada - Gross expenditures (in millions of dollars)

Employment and Social Development Canada - Statutory transfer payments (in millions of dollars)

The following figure illustrates ESDC’s spending trend from fiscal year 2014 to 2015 to fiscal year 2019 to 2020. In fiscal year 2016 to 2017, the Department spent $122.8 billion in achieving its expected results. Planned spending presented from fiscal year 2017 to 2018 to fiscal year 2019 to 2020 corresponds to the forecasted planned spending presented in the 2017–18 Departmental Plan.

Description of Figure 2

ESDC’s spending trend from fiscal year 2014 to 2015 to fiscal year 2019 to 2020

Fiscal year	VotedFootnote 2	Statutory	Sunset Programs – Anticipated	Total
2014-2015	4 193 458 020	107 738 209 017	no data	111 931 667 037
2015-2016	4 058 896 841	118 784 815 253	no data	122 843 712 094
2016-2017	4 544 346 847	118 210 473 233	no data	128 754 820 080
2017-2018	4 180 286 832	124 165 103 414	no data	128 345 390 246
2018-2019	3 876 102 045	129 511 026 233	no data	133 387 128 278
2019-2020	3 559 895 983	135 662 532 058	no data	139 222 428 041

ESDC usually shows a constant increase in its Departmental Spending Trend. As noted in the graph above, the growth is attributable to statutory spending. ESDC is responsible for the direct delivery of programs such as OAS, the CPP, EI and other statutory transfer payments. Those programs can be affected by variances in the average number of beneficiaries and variances in the average benefit rates. This is the case for the OAS/Guaranteed Income Supplement (GIS) and CPP programs. For EI, spending can be influenced by many factors such as the number of eligible individuals establishing claims for EI benefits, which varies with the economy, the benefit rates or new measures implemented. The combined effect of those programs explain the main increase in Statutory spending overall.

In fiscal year 2016 to 2017, the total actual expenditures were $88.9 million less than in fiscal year 2015 to 2016. This is the result of a decrease of $574.3 million in statutory payments and an increase of $485.4 million in voted expenditures.

Statutory payments have followed their usual trend in fiscal year 2016 to 2017. There have been increases to OAS/GIS payments ($2.7 billion) and to CPP benefits ($1.8 billion) caused by the aging population and the changes in average monthly benefits. The fiscal year 2016 to 2017 average monthly rate for the OAS basic pension was $549.00, $8.37 more than the average rate from fiscal year 2015 to 2016. There was also an increase to the average number of beneficiaries from 5.6 million to 5.8 million for fiscal year 2016 to 2017.

EI benefits have also increased by $1.3 billion. The majority of the increase is mainly due to temporary legislative changes made through Budget 2016 announcements to extend the duration of EI regular benefits by 5 weeks for eligible claimants in the 15 EI economic regions, with up to an additional 20 weeks for long-tenured workers.

Other statutory programs show variances throughout the years (increase of $412 million for fiscal year 2016 to 2017 compared to fiscal year 2015 to 2016), namely the Canada Student Loans Program, the Canada Education Savings Grant Program and the Canada Disability Savings Program.

In fiscal year 2016 to 2017, these increases were offset by a large decrease of $6.8 billion to the Universal Child Care Benefit (UCCB) program. Budget 2016 introduced the Canada Child Benefit (CCB). The UCCB was replaced by the CCB and this change came into effect on July 1, 2016.

Overall increases and decreases to voted expenditures result mainly from variances in grants and contributions spending as well as from write-offs of irrecoverable debts owed to the Crown for directly financed Canada Student Loans in fiscal year 2014 to 2015 to fiscal year 2016 to 2017. The increase in grants and contributions from fiscal year 2015 to 2016 to fiscal year 2016 to 2017 is mainly due to the Youth Employment Strategy, the Canada Job Fund and the Homelessness programs having spent more than in fiscal year 2015 to 2016 due to additional funding received in fiscal year 2016 to 2017.

Budgetary performance summary

Budgetary performance summary for program(s) and internal services (dollars)^{Footnote 3}

Budgetary performance summary for programs and internal services

The overall increase in spending of $21.5 billion from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending can mainly be explained by increases to Canada Pension Plan and Old Age Security benefits caused by the aging population and changes in the average monthly benefits.

The significant reduction from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending for Delivery of Services for Other Government of Canada Programs is mainly explained by the need to renew agreements on Passport services funding in fiscal year 2017 to 2018. The Department will have to request funding for fiscal year 2018 to 2019 and future years. As for the variance between planned spending for fiscal year 2016 to 2017 and actual spending for fiscal year 2016 to 2017, the difference is mainly due to the Passport contingency reserve that was created for unexpected circumstances and increases in volumes and not used. The unused funds remain in the non-lapsing Passport Revolving Fund.

Under Skills and Employment, the difference in financial resources from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is mainly due to higher Employment Insurance benefits.

Under the Learning program, the overall increase in spending from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is a result of increases to the Canada Loans and Grants for Students and Apprentices Program, including the Canada Education Savings Grant and the Canada Learning Bond.

The variances related to Labour from year to year are mostly attributable to changes in Wage Earner Protection Program and federal workers’ compensation payments.

The overall increase under Income Security from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending can be explained by increases in the number of beneficiaries and the average monthly benefits payments for Old Age Security ($9.9 billion) and the Canada Pension Plan ($9.5 billion).

In Social Development, the significant decrease from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is a result of the Budget 2016 introduction of the Canada Child Benefit that came into effect on July 1, 2016, and replaced the Universal Child Care Benefit. The same reason applies to the variances that exist when comparing fiscal year 2015 to 2016 actual spending and fiscal year 2016 to 2017 actual spending.

The overall decrease between fiscal year 2014 to 2015 actual spending and fiscal year 2018 to 2019 planned spending for Internal Services can be explained by a revised guide issued by TBS on recording and reporting Internal Services expenditures that was effective April 1, 2016. As per this new guide, all special purpose real property as well as office accommodation retrofits done at the request of a program are to be charged to the programs and not to Internal Services. Internal Services’ future plans have been adjusted accordingly. A decrease in Internal Services occurred in fiscal year 2016 to 2017 as well, but this reduction is not as high as it should be due to the recording of temporary costs for overpayments in relation to the Phoenix pay issue, which increased expenditures.

The variance of $27.6 million in actual spending under Other Costs from fiscal year 2015 to 2016 to fiscal year 2016 to 2017 is mainly related to increased charges from other government departments to both the CPP and EI. Those increases are, in part, compensated by a decrease in EI doubtful accounts.

Human resources summary for programs and internal services

There is an overall decrease of 2,897 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs. This can be explained by the following three areas within Employment and Social Development Canada.

Under the Delivery of Services for Other Government of Canada Programs, there is an overall reduction of 1,384 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs. This reduction in FTEs is mainly explained by the need to renew agreements on Passport services in fiscal year 2017 to 2018. The Department will have to request funding and FTEs for fiscal year 2018 to 2019 and future years. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is mainly due to the Passport contingency reserve that was created for unexpected circumstances and increases in volumes and not used. The funding unused related to Passport FTEs remains in the non-lapsing Passport Revolving Fund.

Under Skills and Employment, FTE utilization has remained stable over the past three years. The overall decrease of 739 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs is mainly due to requests for additional funds and FTEs for Employment Insurance (EI) measures in past years to address increased EI workload and other EI related needs. Planned FTEs for fiscal year 2017 to 2018 and fiscal year 2018 to 2019 do not include such requests. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is due to the fact that such requests for additional funding and FTEs were done after planned FTE amounts were determined.

Under Income Security, FTE utilization has also remained stable over the last three years. The overall decrease of 682 FTEs under Income Security from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs can mainly be explained by requests for funds and FTEs in past years to address CPP and OAS workload. Planned FTEs for fiscal year 2017 to 2018 and fiscal year 2018 to 2019 do not include such requests. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is due to the fact that such requests for additional funding and FTEs were done after planned FTE amounts were determined.

Financial statements

Refer to the complete Employment and Social Development Canada Financial Statements (Unaudited) for the Year Ended March 31, 2017^{Footnote 9}, which also includes an Annex to the statement of management responsibility including internal control over financial reporting.

Expenses by major program activity

Description of Figure 3

Program activities	in dollars	percentage
Income Security	49,127,488	61.89%
Skills and Employment	23,781,831	29.96%
Social Development	2,234,791	2.82%
Learning	3,039,277	3.83%
Other program activities (including Labour program)	1,198,600	1.51%
Total	79,381,987	100%

Actual over planned

The 2016 to 2017 fiscal year’s expenses were $4,458.5 million lower than planned. The variance is mainly attributable to the elimination of the Universal Child Care Benefit program in July 2016, which was offset by unplanned increases in unemployment rates and benefits.

Actual year over year

Total expenses for fiscal year 2016 to 2017 amounted to $79,382.0 million, a decrease of $624.5 million over the previous year’s total expenses of $80,006.5 million. The decrease in expenses is mostly attributable to:

• an increase of $2,825.2 million in Income Security expenses mainly due to the increase in the eligible population for OAS caused by the growing aging population and the increase in the maximum monthly benefit amount, and the increase to the annual Guaranteed Income Supplement benefit for the lowest-income single seniors introduced in Budget 2016;
• an increase of $1,619.3 million in Skills and Employment expenses mainly due to increases in the average weekly benefits and in the number of EI beneficiaries as well as new temporary measures introduced in Budget 2016;
• an increase of $498.6 million in Learning expenses mainly due to increases in the amounts available through the Canada Student Grants Program beginning August 2016; and
• a decrease of $5,494.1 million in Social Development expenses mainly due to the elimination of the Universal Child Care Benefit program in July 2016.

Revenues by type

Description of Figure 4

Revenues	in dollars	percentage
Employment Insurance	22,603,337	98.03%
Other revenues	453,841	1.97%
Total	23,057,178	100%

Actual over planned

The 2016 to 2017 fiscal year’s revenues were $151.3 million lower than planned. The variance is mainly attributable to the total EI insurable earnings being lower than planned due to lower than expected growth in wages and employment.

Actual year over year

Total revenues for fiscal year 2016 to 2017 amounted to $23,057.2 million, a decrease of $971.2 million from the previous year's total revenues of $24,028.4 million. The majority of this decrease can be explained by a decrease in the premium rate for EI in 2017, which was offset by increases in the maximum insurable earnings and a growth in employment.

Employment and Social Development Canada condensed consolidated statement of financial position (unaudited) as at March 31, 2017 (in dollars)

Details	Fiscal Year 2016 to 2017	Fiscal Year 2015 to 2016	Difference (fiscal year 2016 to 2017 minus fiscal year 2015 to 2016)
Total net financial assets	19,423,599,715	19,224,961,665	198,638,050
Total net liabilities	2,759,089,800	2,664,848,744	94,241,056
Departmental net financial asset	16,664,509,915	16,560,112,921	104,396,994
Total non-financial assets	246,384,354	277,921,707	(31,537,353)
Departmental net financial position	16,910,894,269	16,838,034,628	72,859,641

Assets by type

Description of Figure 5

Assets	in dollars	percentage
Accounts receivable and advances	4,319,773	21.96%
Loans receivable	15,103,827	76.79%
Other assets	246,384	1.25%
Total	19,669,984	100%

Total assets (including financial and non-financials assets) amounted to $19,670.0 million as at March 31, 2017, an increase of $167.1 million over the previous year's total assets of $19,502.9 million. The increase in assets is mainly attributable to:

• a decrease of $315.7 million in accounts receivable and advances mostly due to an decrease in EI premiums receivable from the Canada Revenue Agency that is in line with the overall premiums revenue decrease; and
• an increase of $514.3 million in loans receivable mostly caused by an excess of new Canada Student Loans disbursed over the total amount of repayments received.

Liabilities by type

Description of Figure 6

Liabilities	in dollars	percentage
Accounts payable and accrued liabilities	1,824,340	66.12%
Designated Amount Fund-Trust Account	82,397	2.99%
Government Annuities Account	120,487	4.37%
Employee future benefits	73,353	2.66%
Due to Consolidated Revenue Fund	480,796	17.43%
Vacation pay and compensatory leave	72,209	2.62%
Due to Canada Pension Plan	105,508	3.82%
Total	2,759,090	100%

Total liabilities amounted to $2,759.1 million as at March 31, 2017, an increase of $94.3 million over the previous year's total liabilities of $2,664.8 million. The increase in liabilities is mostly due to timing of year-end payments.

Departmental spending trend

ESDC expenditures on programs and services total $122.8 billion, of which $116.5 billion, or approximately 95 percent, directly benefits Canadians through Employment Insurance (EI), the Canada Pension Plan (CPP), Old Age Security (OAS) and other statutory transfer payment programs. Departmental expenditures were $1.9 billion in voted grants and contributions and $2.2 billion for Employment Insurance Part II.

Description of Figure 1

Category	Fiscal year 2016 to 2017 actual spending
	Amount in millions of dollars	Percentage
Old Age Security / Guaranteed Income Supplement / Allowance	48,201.8	39.3%
Canada Pension Plan (CPP)	42,502.1	34.6%
Employment Insurance (EI)	20,711.1	16.9%
Universal Child Care / Canada Student Loans / Other Statutory Payments	5,039.2	4.1%
Gross Operating Expenditures	3,171.8	2.6%
Voted Grants and Contributions	1,878.8	1.5%
Other - Passport Services, Workers' Compensation and EI/CPP charges	1,250.0	1.0%
Consolidated total	122,754.8	100.0%

Employment and Social Development Canada - Gross expenditures (in millions of dollars)

Employment and Social Development Canada - Statutory transfer payments (in millions of dollars)

The following figure illustrates ESDC’s spending trend from fiscal year 2014 to 2015 to fiscal year 2019 to 2020. In fiscal year 2016 to 2017, the Department spent $122.8 billion in achieving its expected results. Planned spending presented from fiscal year 2017 to 2018 to fiscal year 2019 to 2020 corresponds to the forecasted planned spending presented in the 2017–18 Departmental Plan.

Description of Figure 2

ESDC’s spending trend from fiscal year 2014 to 2015 to fiscal year 2019 to 2020

Fiscal year	VotedFootnote 2	Statutory	Sunset Programs – Anticipated	Total
2014-2015	4 193 458 020	107 738 209 017	no data	111 931 667 037
2015-2016	4 058 896 841	118 784 815 253	no data	122 843 712 094
2016-2017	4 544 346 847	118 210 473 233	no data	128 754 820 080
2017-2018	4 180 286 832	124 165 103 414	no data	128 345 390 246
2018-2019	3 876 102 045	129 511 026 233	no data	133 387 128 278
2019-2020	3 559 895 983	135 662 532 058	no data	139 222 428 041

ESDC usually shows a constant increase in its Departmental Spending Trend. As noted in the graph above, the growth is attributable to statutory spending. ESDC is responsible for the direct delivery of programs such as OAS, the CPP, EI and other statutory transfer payments. Those programs can be affected by variances in the average number of beneficiaries and variances in the average benefit rates. This is the case for the OAS/Guaranteed Income Supplement (GIS) and CPP programs. For EI, spending can be influenced by many factors such as the number of eligible individuals establishing claims for EI benefits, which varies with the economy, the benefit rates or new measures implemented. The combined effect of those programs explain the main increase in Statutory spending overall.

In fiscal year 2016 to 2017, the total actual expenditures were $88.9 million less than in fiscal year 2015 to 2016. This is the result of a decrease of $574.3 million in statutory payments and an increase of $485.4 million in voted expenditures.

Statutory payments have followed their usual trend in fiscal year 2016 to 2017. There have been increases to OAS/GIS payments ($2.7 billion) and to CPP benefits ($1.8 billion) caused by the aging population and the changes in average monthly benefits. The fiscal year 2016 to 2017 average monthly rate for the OAS basic pension was $549.00, $8.37 more than the average rate from fiscal year 2015 to 2016. There was also an increase to the average number of beneficiaries from 5.6 million to 5.8 million for fiscal year 2016 to 2017.

EI benefits have also increased by $1.3 billion. The majority of the increase is mainly due to temporary legislative changes made through Budget 2016 announcements to extend the duration of EI regular benefits by 5 weeks for eligible claimants in the 15 EI economic regions, with up to an additional 20 weeks for long-tenured workers.

Other statutory programs show variances throughout the years (increase of $412 million for fiscal year 2016 to 2017 compared to fiscal year 2015 to 2016), namely the Canada Student Loans Program, the Canada Education Savings Grant Program and the Canada Disability Savings Program.

In fiscal year 2016 to 2017, these increases were offset by a large decrease of $6.8 billion to the Universal Child Care Benefit (UCCB) program. Budget 2016 introduced the Canada Child Benefit (CCB). The UCCB was replaced by the CCB and this change came into effect on July 1, 2016.

Overall increases and decreases to voted expenditures result mainly from variances in grants and contributions spending as well as from write-offs of irrecoverable debts owed to the Crown for directly financed Canada Student Loans in fiscal year 2014 to 2015 to fiscal year 2016 to 2017. The increase in grants and contributions from fiscal year 2015 to 2016 to fiscal year 2016 to 2017 is mainly due to the Youth Employment Strategy, the Canada Job Fund and the Homelessness programs having spent more than in fiscal year 2015 to 2016 due to additional funding received in fiscal year 2016 to 2017.

Budgetary performance summary

Budgetary performance summary for program(s) and internal services (dollars)^{Footnote 3}

Budgetary performance summary for programs and internal services

The overall increase in spending of $21.5 billion from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending can mainly be explained by increases to Canada Pension Plan and Old Age Security benefits caused by the aging population and changes in the average monthly benefits.

The significant reduction from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending for Delivery of Services for Other Government of Canada Programs is mainly explained by the need to renew agreements on Passport services funding in fiscal year 2017 to 2018. The Department will have to request funding for fiscal year 2018 to 2019 and future years. As for the variance between planned spending for fiscal year 2016 to 2017 and actual spending for fiscal year 2016 to 2017, the difference is mainly due to the Passport contingency reserve that was created for unexpected circumstances and increases in volumes and not used. The unused funds remain in the non-lapsing Passport Revolving Fund.

Under Skills and Employment, the difference in financial resources from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is mainly due to higher Employment Insurance benefits.

Under the Learning program, the overall increase in spending from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is a result of increases to the Canada Loans and Grants for Students and Apprentices Program, including the Canada Education Savings Grant and the Canada Learning Bond.

The variances related to Labour from year to year are mostly attributable to changes in Wage Earner Protection Program and federal workers’ compensation payments.

The overall increase under Income Security from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending can be explained by increases in the number of beneficiaries and the average monthly benefits payments for Old Age Security ($9.9 billion) and the Canada Pension Plan ($9.5 billion).

In Social Development, the significant decrease from fiscal year 2014 to 2015 actual spending to fiscal year 2018 to 2019 planned spending is a result of the Budget 2016 introduction of the Canada Child Benefit that came into effect on July 1, 2016, and replaced the Universal Child Care Benefit. The same reason applies to the variances that exist when comparing fiscal year 2015 to 2016 actual spending and fiscal year 2016 to 2017 actual spending.

The overall decrease between fiscal year 2014 to 2015 actual spending and fiscal year 2018 to 2019 planned spending for Internal Services can be explained by a revised guide issued by TBS on recording and reporting Internal Services expenditures that was effective April 1, 2016. As per this new guide, all special purpose real property as well as office accommodation retrofits done at the request of a program are to be charged to the programs and not to Internal Services. Internal Services’ future plans have been adjusted accordingly. A decrease in Internal Services occurred in fiscal year 2016 to 2017 as well, but this reduction is not as high as it should be due to the recording of temporary costs for overpayments in relation to the Phoenix pay issue, which increased expenditures.

The variance of $27.6 million in actual spending under Other Costs from fiscal year 2015 to 2016 to fiscal year 2016 to 2017 is mainly related to increased charges from other government departments to both the CPP and EI. Those increases are, in part, compensated by a decrease in EI doubtful accounts.

Human resources summary for programs and internal services

There is an overall decrease of 2,897 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs. This can be explained by the following three areas within Employment and Social Development Canada.

Under the Delivery of Services for Other Government of Canada Programs, there is an overall reduction of 1,384 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs. This reduction in FTEs is mainly explained by the need to renew agreements on Passport services in fiscal year 2017 to 2018. The Department will have to request funding and FTEs for fiscal year 2018 to 2019 and future years. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is mainly due to the Passport contingency reserve that was created for unexpected circumstances and increases in volumes and not used. The funding unused related to Passport FTEs remains in the non-lapsing Passport Revolving Fund.

Under Skills and Employment, FTE utilization has remained stable over the past three years. The overall decrease of 739 FTEs from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs is mainly due to requests for additional funds and FTEs for Employment Insurance (EI) measures in past years to address increased EI workload and other EI related needs. Planned FTEs for fiscal year 2017 to 2018 and fiscal year 2018 to 2019 do not include such requests. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is due to the fact that such requests for additional funding and FTEs were done after planned FTE amounts were determined.

Under Income Security, FTE utilization has also remained stable over the last three years. The overall decrease of 682 FTEs under Income Security from fiscal year 2014 to 2015 actual FTEs to fiscal year 2018 to 2019 planned FTEs can mainly be explained by requests for funds and FTEs in past years to address CPP and OAS workload. Planned FTEs for fiscal year 2017 to 2018 and fiscal year 2018 to 2019 do not include such requests. As for the variance between planned FTEs for fiscal year 2016 to 2017 and actual FTEs for fiscal year 2016 to 2017, the difference is due to the fact that such requests for additional funding and FTEs were done after planned FTE amounts were determined.

Financial statements

Refer to the complete Employment and Social Development Canada Financial Statements (Unaudited) for the Year Ended March 31, 2017^{Footnote 9}, which also includes an Annex to the statement of management responsibility including internal control over financial reporting.

Expenses by major program activity

Description of Figure 3

Program activities	in dollars	percentage
Income Security	49,127,488	61.89%
Skills and Employment	23,781,831	29.96%
Social Development	2,234,791	2.82%
Learning	3,039,277	3.83%
Other program activities (including Labour program)	1,198,600	1.51%
Total	79,381,987	100%

Actual over planned

The 2016 to 2017 fiscal year’s expenses were $4,458.5 million lower than planned. The variance is mainly attributable to the elimination of the Universal Child Care Benefit program in July 2016, which was offset by unplanned increases in unemployment rates and benefits.

Actual year over year

Total expenses for fiscal year 2016 to 2017 amounted to $79,382.0 million, a decrease of $624.5 million over the previous year’s total expenses of $80,006.5 million. The decrease in expenses is mostly attributable to:

• an increase of $2,825.2 million in Income Security expenses mainly due to the increase in the eligible population for OAS caused by the growing aging population and the increase in the maximum monthly benefit amount, and the increase to the annual Guaranteed Income Supplement benefit for the lowest-income single seniors introduced in Budget 2016;
• an increase of $1,619.3 million in Skills and Employment expenses mainly due to increases in the average weekly benefits and in the number of EI beneficiaries as well as new temporary measures introduced in Budget 2016;
• an increase of $498.6 million in Learning expenses mainly due to increases in the amounts available through the Canada Student Grants Program beginning August 2016; and
• a decrease of $5,494.1 million in Social Development expenses mainly due to the elimination of the Universal Child Care Benefit program in July 2016.

Revenues by type

Description of Figure 4

Revenues	in dollars	percentage
Employment Insurance	22,603,337	98.03%
Other revenues	453,841	1.97%
Total	23,057,178	100%

Actual over planned

The 2016 to 2017 fiscal year’s revenues were $151.3 million lower than planned. The variance is mainly attributable to the total EI insurable earnings being lower than planned due to lower than expected growth in wages and employment.

Actual year over year

Total revenues for fiscal year 2016 to 2017 amounted to $23,057.2 million, a decrease of $971.2 million from the previous year's total revenues of $24,028.4 million. The majority of this decrease can be explained by a decrease in the premium rate for EI in 2017, which was offset by increases in the maximum insurable earnings and a growth in employment.

Employment and Social Development Canada condensed consolidated statement of financial position (unaudited) as at March 31, 2017 (in dollars)

Details	Fiscal Year 2016 to 2017	Fiscal Year 2015 to 2016	Difference (fiscal year 2016 to 2017 minus fiscal year 2015 to 2016)
Total net financial assets	19,423,599,715	19,224,961,665	198,638,050
Total net liabilities	2,759,089,800	2,664,848,744	94,241,056
Departmental net financial asset	16,664,509,915	16,560,112,921	104,396,994
Total non-financial assets	246,384,354	277,921,707	(31,537,353)
Departmental net financial position	16,910,894,269	16,838,034,628	72,859,641

Assets by type

Description of Figure 5

Assets	in dollars	percentage
Accounts receivable and advances	4,319,773	21.96%
Loans receivable	15,103,827	76.79%
Other assets	246,384	1.25%
Total	19,669,984	100%

Total assets (including financial and non-financials assets) amounted to $19,670.0 million as at March 31, 2017, an increase of $167.1 million over the previous year's total assets of $19,502.9 million. The increase in assets is mainly attributable to:

• a decrease of $315.7 million in accounts receivable and advances mostly due to an decrease in EI premiums receivable from the Canada Revenue Agency that is in line with the overall premiums revenue decrease; and
• an increase of $514.3 million in loans receivable mostly caused by an excess of new Canada Student Loans disbursed over the total amount of repayments received.

Liabilities by type

Description of Figure 6

Liabilities	in dollars	percentage
Accounts payable and accrued liabilities	1,824,340	66.12%
Designated Amount Fund-Trust Account	82,397	2.99%
Government Annuities Account	120,487	4.37%
Employee future benefits	73,353	2.66%
Due to Consolidated Revenue Fund	480,796	17.43%
Vacation pay and compensatory leave	72,209	2.62%
Due to Canada Pension Plan	105,508	3.82%
Total	2,759,090	100%

Total liabilities amounted to $2,759.1 million as at March 31, 2017, an increase of $94.3 million over the previous year's total liabilities of $2,664.8 million. The increase in liabilities is mostly due to timing of year-end payments.