2022 to 2023 Supplementary Estimates (C) overview: Standing Committee on Government Operations and Estimates—May 29, 2023
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Public Services and Procurement Canada and portfolio organizations: 2023 to 2024 Main Estimates overview
In this section
The 2023 to 2024 Main Estimates were tabled in Parliament on February 15, 2023.
Public Services and Procurement Canada’s (PSPC) opening net budget is $4,337.8 million. Compared to the 2022 to 2023 opening net budget of $4,639.6 million, this is a net decrease of $301.8 million which is attributable mainly to the combination of items outlined below. When taking into account revenues of $3,894.6 million, the department’s gross budget will be $8,230.2 million.
The net decrease is mainly due to the following year-over-year variances:
Government of Canada’s pay administration program
Decrease of $267.4 million.
Purpose of the funding
- The net decrease of $267.4 million reflects in part the sunsetting of funding in 2022 to 2023 to continue towards delivering and stabilizing pay for the Government of Canada (GC) and to reduce the backlog of outstanding pay transactions
- Funding granted via the following:
- $910 million over 3 fiscal years (fiscal year 2020 to 2021 to fiscal year 2022 to 2023) in the 2020 economic and fiscal snapshot for PSPC
- $47 million over 2 fiscal years (fiscal year 2021 to 2022 to fiscal year 2022 to 2023) in Budget 2021
- The recent 2023 federal budget announced funding to continue to support pay administration operations starting in fiscal year 2023 to 2024 in order to replace sunsetting funding. This funding announcement is not reflected in the Main Estimates
Long-term capital investment plan
Decrease of $51.3 million.
Purpose of the funding
- The net decrease in capital vote 5 reflects the department’s current funding approval to deliver on its long-term capital funding plan. The department will seek updated approval as required in order to maintain the quality of its infrastructure for the benefit of all Canadians
- Investments are made in 2 broad categories of assets:
- infrastructure investments: comprised of assets that enable the delivery of government programs and services administered by various client organizations and assets that are used by the general public. The 4 groups of assets are:
- parliamentary
- office
- science
- engineering assets (for example: bridges, roads, docks)
- enabling services investments: comprised of assets that enable PSPC to deliver its programs and services and other government operations. The 2 groups of assets are:
- digital assets (for example: data modernization)
- fleet assets (transition to zero emission vehicles)
- infrastructure investments: comprised of assets that enable the delivery of government programs and services administered by various client organizations and assets that are used by the general public. The 4 groups of assets are:
Pre-planning for capital and fit-up
Decrease of $46.2 million.
Purpose of the funding
- The net decrease in pre-planning for capital and fit-up aligns to the department’s current funding approvals. The pre-planning funding is used to pursue the planning and delivery of critical infrastructure projects such as for Laboratories Canada, the West Memorial Building Rehabilitation and the long-term vision and plan for the Parliamentary Precinct, as well as to support refit and fit-up activities (for example: swing space)
- Pre-planning includes activities such as:
- feasibility studies
- options analysis
- investigations (for example: soil condition, municipal infrastructure)
- consulting support
- pre-tender contracting work
- statement of requirements
- pre-design activities
- The department will seek updated approval as required
Non-discretionary expenses associated with Crown-owned buildings and leased spaces
Increase of $54.2 million.
Purpose of the funding
- This funding will protect the department from inflation (price) and variation in the number of public servants requiring accommodations with crown-owned buildings and leased spaces. The costs relate to items such as rent, cost of utilities and accommodation costs
- In return for this protection, unspent funds are returned to the Department of Finance fiscal framework
Card acceptance and postage fees
Increase of $16.7 million.
Purpose of the funding
- This funding is for non-discretionary expenses incurred by the Receiver General for card acceptance and postage fees
- This funding will enable the Receiver General to pay for debit and credit card acceptance fees incurred by federal departments and agencies as a result of the collection of revenues, and also pays for the postage fees to mail up to 20 million cheques to Canadians
- Debit and credit card acceptance fees are dependent on the volume and the price per transaction based on card type
- Postage fees are dependent on the volume of cheques mailed and the price of postage
Other
Net remaining decrease of $10 million is the result of funding variances in miscellaneous projects and activities such as a reduction in workers’ compensation costs related to former Cape Breton Development Corporation employees.
Canada Post
Purpose of the funding
$22,210,000 appropriation amount used for the government (Parliamentary) mail, materials for the use of the blind persons and library materials.
Shared Services Canada: 2023 to 2024 Main Estimates overview
In this section
Shared Services Canada (SSC) is seeking a net decrease of $26.9 million compared to last year’s Main Estimates.
As shown in the Departmental Plan, SSC’s available funding for 2023 to 2024 will be $2.6 billion, net of $853.0 million in revenue.
- $2.2 billion in vote 1
- $269.7 million in vote 5
- $123.2 million in statutory
The overall net decrease of $26.9 million is due to:
- ($329.3 million) decrease for changes in funding relating to multi-year initiatives and projects
- ($34.4 million) decrease for transfers
Offset by:
- $136.4 million increase in new funding for information technology (IT) services and project
- $194.9 million increase for reprofiles from previous fiscal years
- $5.5 million increase in statutory appropriations, and nil impact items for vote-netted revenue authority
New funding: $136.4 million increase
A total of $67.4 million for the Network Modernization and Implementation Fund from Budget 2021.
This funding will be used to meet the increasing demand for higher bandwidth for users, reduce single points of failure, and promote readiness to adopt emerging technology in response to persistent digital demand.
A total of $38.4 million for the costs of providing core IT services.
This funding is provided to SSC as an adjustment to support cost associated with provision of digital services to federal government employees such as:
- mobile devices
- email service
- hardware (laptops, tablets)
- secure remote access
- necessary software
A total of $29.3 million for the standardization of mandatory network, security and digital services for small departments and agencies (SDA) from Budget 2022.
This funding will be used to provide SDAs with a bundle of SSC network, security, and digital services that will be enhanced by Communications security establishment’s (CSE) suite of sensors.
A total of $1.3 million for compensation adjustments associated with collective agreements concluded for executives and senior leaders in the core public administration.
Transfers between departments: ($34.4 million) net decrease
An increase of $0.9 million from PSPC for the reimbursement related to reduced accommodation requirements because of data centre consolidations.
An increase of $0.1 million from the Treasury Board Secretariat (TBS) for the greening government fund.
This funding will be used to support a joint initiative with the TBS Office of the Chief Information Officer that aims to measure and reduce federal greenhouse gas emissions embedded in GC IT infrastructure.
A decrease of ($10.5 million) related to the GC IT Enterprise Service Model (ESM) for revenue in lieu of appropriation.
As SSC and its stakeholders are adapting to the implementation of the ESM and to ensure quality service delivery, this transfer is an extension of the 2022 to 2023 fiscal year agreement. This agreement recognizes that for revenue-dependent departments, a portion of the initial Budget 2021 transfer will be returned, and SSC will invoice these departments in fiscal year 2023 to 2024 for this amount instead:
- ($7.9 million) to PSPC
- ($1.9 million) to Innovation, Science and Economic Development Canada
- ($0.4 million) to Immigration and Refugee Board of Canada
- ($0.3 million) to the Canadian Nuclear Safety Commission
A decrease of $7.7 million to the Department of National Defence (DND) for the continual operation of its Static Military Command and Control (C2) systems.
Funding for these systems was included in the initial funding transfers to SSC; however, it has been determined that these systems are not within SSC’s mandate. This transfer returns this funding to DND on a permanent basis.
A decrease of ($6.1 million) to CSE for the Security Information and Event Management (SIEM) project to allow CSE to operate the new Canadian Centre for Cyber Security SIEM solution components.
The financial resources will provide CSE with support for people, process, and technology development during the implementation of the solution.
A decrease of ($0.3 million) to the TBS, which includes:
($0.2 million) to support Financial Management Transformation.
This funding is for SSC’s contribution to the Financial Management Transformation (FMT)–Digital Comptrollership Program (DCP) in support of the DCP’s goal to develop, maintain, and evolve the SAP S/4HANA GC digital core template business capabilities that support the GC’s ongoing business.
($0.1 million) to support the business function role and responsibilities for the GCpass Service.
This funding is for 1 full-time equivalents (FTE) and fulfils the agreement made between TBS and SSC during the planning phase of the Internal Centralized Authentication Services project, now referred to as the GCpass Service.
Vote realignment within SSC:
A decrease of ($10.8 million) for the realignment of funding from Vote 1 (operating) to Vote 1 (personnel) to support SSC’s human resources requirements.
This will cover the costs related to the Employee Benefits Plan.
A nil net impact for the realignment of funding from the Vote 5 (capital) to Vote 1 (operating) of $54.4 million to support the ongoing service delivery emerging from the completion of the mission critical projects.
As these projects continue to successfully close and transition to ongoing services, the capital requirements have diminished. This transfer will help fund operating requirements, such as ongoing costs related to these projects.
Reprofiles: $194.9 million increase
A total increase of $194.9 million for the following initiatives, which experienced delays mainly brought on by the pandemic:
- A total of $80.6 million for the Workload Modernization and Migration Program (Budget 2021):
- this funding will be used to continue working with partners to migrate their workloads and close legacy data centres
- A total of $64.7 million for cyber and IT security projects: GC secret infrastructure expansion and endpoint visibility, awareness and security (Budget 2018):
- this helps align funding with the revised timelines to deliver on the objectives and planned outcomes of these 2 projects, in support of GC secured IT requirements
- A total of $46.1 million for mission critical projects (2017 fall economic statement)
- A total of $3.5 million for the Innovative Solutions Canada program, which promotes the development and adoption of innovative technologies in Canada:
- this funding is received through a Special Purpose Allotment as departments are not able to carry forward funds but can submit a reprofile request
Other adjustments: ($329.3 million) net decrease
A number of adjustments totalling ($329.3 million) are related to multi-year initiatives and projects where funding amounts changed. These are as follows:
- a decrease of ($130.0 million) for the workload modernization and migration program (Budget 2021)
- a decrease of ($63.2 million) for next generation human resources and pay (off cycle Budget 2019)
- a decrease of ($61.1 million) for mission critical projects (2017 fall economic statement)
- a decrease of ($35.0 million) for the secure cloud enablement and defence evolution and departmental connectivity and monitoring initiative (Budget 2021)
- a decrease of ($25.8 million) for the costs of providing core IT services
- a decrease of ($17.7 million) for the high performance computing for the environment and climate change Canada project
- a net increase of $3.5 million for various projects and initiatives
Statutory appropriations: $5.5 million net increase
A net increase of $5.5 million (statutory) in the Employee Benefit Plan mainly due to FTE increases at SSC.
Net $0 impact items
The following items result in a net $0 (NIL) impact on SSC’s voted budgetary authorities as they have offsetting amounts between the vote-netted revenues (VNR) (VNR–Operating and/or VNR–Capital) and the operating and/or capital expenditures vote (Vote 1–Operating and/or Vote 5–Capital). As a result, the increases below are for revenues that will offset related expenditures incurred in the same fiscal year that the revenues are received.
Vote netted revenue (VNR):
- an increase of $370.9 million in Vote 1 (operating) due to continued increase in demand from partner organizations for IT investments and transformation for the GC digital government strategy
- an increase of $16.7 million in Vote 1 (operating) for a technical adjustment to reflect the correct amount for fiscal year 2023 to 2024
- an increase of $60.0 million in Vote 5 (capital) to extend the policy exemption on the Directive on Charging and Special Financial Authorities for a 3-year period, from April 1, 2023, to March 31, 2026
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