Annual Service Plan Reports 2004/05 -- Ministry of Provincial Revenue

The Report on Resources provides an overview of ministry funding and expenditures during 2004/05, and provides comparisons to past years, as appropriate. This section also provides a Resource Summary for 2004/05 by core business area.

Ministry Funding

Total funding available for ministry operations in 2004/05 was $148.8 million (see Resource Summary). The sources of ministry voted funding included:

The ministry's gross funding, total recoveries and net funding have increased over the last three year period. The ministry's 2005/06 – 2007/08 Service Plan indicates that the gross expenditures and recoveries will increase year over year due to the projected increases in revenue and debt collection resulting from the Revenue Management Project and the projected sharing of these realized benefits with EAS (see Figure 5).

Figure 5: Comparison of Gross Funding, Recoveries and Net Funding, 2002/03 – 2007/08.

Ministry Expenditures

Ministry expenditures during 2004/05 totalled almost $130.7 million (see Resource Summary) of which $84.8 million was recovered from revenues administered by the ministry. Ministry expenditures included:

Capital expenditures of almost $23.8 million included $10.5 million capital contingency for the Revenue Management Project capital lease recognition. The ministry overall capital expenditures included $19.1 million for the Revenue Management Project and $4.7 million on other ministry capital projects.

The ministry made financing and transaction disbursements totalling $943.0 million. These disbursements, directed by legislation, return a percentage of specific revenue to identified entities.

The gross expenditures in 2004/05 increased by $20.6 million compared to 2003/04 and by $46.3 million compared to 2002/03 (see Table 5). This change was primarily due to expenditures on the Revenue Management Project, and additional resources allocated to the audit and compliance program.

Ministry Revenue

The ministry provides a central service to the Province for revenue administration and collection. This includes consumption taxes (social service tax, hotel room tax, motor fuel tax, tobacco tax), property taxes (rural property tax, provincial school tax and property transfer tax) and other taxes (corporation capital tax, insurance premiums tax, and logging tax), personal and corporate income tax collected by the Canada Revenue Agency on behalf of the Province, natural resource revenues (natural gas royalties, petroleum royalties, permits and fees and mineral taxes and royalties) and Medical Service Plan premiums and other fees (e.g., ruling fees, clearance certificates). In 2004/05, the ministry administered $18.4 billion in revenue, or approximately 56 per cent of all revenues administered by the Province (see Figure 6). Revenue has increased over the past three years in all categories; $15.5 billion in 2002/03 and $16.9 billion in 2003/04.

Core Business Areas	2002/03 Actual	2003/04 Actual	2004/05 Actual
Operating Expenses ($000)
Revenue Program
Gross	38,593	49,688	54,636
Recoveries	(37,827)	(47,212)	(49,593)
Net	766	2,476	5,043
Revenue Services
Gross	8,764	13,157	13,982
Recoveries	(8,418)	(12,656)	(13,320)
Net	346	501	662
Executive and Support Services
Minister's Office	332	349	361
Corporate Services
Gross	36,630	46,845	61,686
Recoveries		(1,390)	(21,900)
Subtotal Net	36,630	45,455	39,786
Net	69,962	45,804	40,147
Total Gross	84,319	110,039	130,665
Total Recoveries	(46,245)	(61,258)	(84,813)
Total Net	38,074	48,781	45,852

2004/05 Resource Summary

	Estimated¹	Other Authori- zations²	Total Estimated	Actual	Variance (Actual minus Total Estimated)³
Operating Expenses ($000)
Revenue Programs
Gross	53,564		53,564	54,636⁵	1,072
Recoveries⁴	(49,589)		(49,589)	(49,593)	(4)
Net	3,975		3,975	5,043	1,068
Revenue Services
Gross	15,277		15,277	13,982	(1,295)
Recoveries⁴	(15,251)		(15,251)	(13,320)	1,931
Net	26		26	662	636
Executive and Support Services
Minister's Office	430		430	361	(69)
Corporate Services
Gross	79,573		79,573	61,686	(17,887)
Recoveries	(31,700)		(31,700)	(21,900)	9,800
Subtotal Net	47,873		47,873	39,786	(8,087)
Net	48,303		48,303	40,147	(8,156)
Total Gross	148,844		148,844	130,665	(18,179)
Total Recoveries⁵	(96,540)		(96,540)	(84,813)	11,727
Total	52,304		52,304	45,852	(6,451)
Full-time Equivalents (Direct FTEs)
Revenue Programs	718		718	662	(56)
Revenue Services	114		114	74	(40)
Executive and Support Services	222		222	169	(53)
Total	1,054		1,054	905	(149)
Ministry Capital Expenditures (Consolidated Revenue Fund) ($000)
Revenue Programs	0		0	192	192
Revenue Services	760	10,465	11,225	19,102	7,877
Executive and Support Services	12,537		12,537	4,468	(8,069)
Total	13,297	10,465	23,762	23,762	0
Other Financing Transactions⁶ ($000)
Revenue Programs
Receipts	940,000	8,031	948,031	938,982	(9,049)
Disbursements	939,100	11,294	950,394	942,964	(7,430)
Net Cash Source (Requirements)	900	(3,263)	(2,363)	(3,982)	(1,619)
Special Accounts — Provincial Home Acquisition Wind up⁷
Receipts	50		50	188	138
Disbursements	40		40	30	(10)
Net Cash Source (Requirements)	10		10	158	148
Total Receipts	940,050	8,031	948,081	939,170	(8,911)
Total Net Cash Source (Requirements)	910	(3,263)	(2,353)	(3,824)	(1,471)


¹	The "Estimated" amounts correspond to the Estimates as presented to the Legislative Assembly on February 17, 2004.
²	Other authorizations include supplementary Estimates. The ministry received a capital contingency for costs related to the Revenue Management Project.
³	Variance display convention has been changed this year to be consistent with the change introduced in Public Accounts. Variance is in all cases "Actual" minus "Total Estimates." If the Actual is greater, then the Variance will be displayed as a positive number.
⁴	Costs are partially recovered from revenues administered by the ministry under statutes listed in Appendix C.
⁵	Includes $4,493 payments based on contributions.
⁶	Other Financing Transactions include disbursements by the Province under legislation to government entities. These include disbursements under the Internal Fuel Tax Agreement (Motor Fuel Tax Act), Land Tax Deferment Act, British Columbia Transit Act, Build BC Act, Greater Vancouver Transportation Authority Act, Rural Area Property Taxes, Tobacco Tax Amendment Act, Tourism British Columbia (Hotel Room Tax Act).
⁷	This account is established under the Special Appropriation and Control Act effective April 1, 2004, for the purpose of providing for expenditures for the winding up of the loan and financial assistance programs under the Home Conversion and Leasehold Loan Act, the Home Mortgage Assistance Act, the Home Purchase Assistance Act, the Homeowner Interest Assistance Act and the Provincial Home Acquisition Act. Receipts represent repayment of outstanding mortgage loan principal. Disbursements represent repurchased mortgage accounts and guarantee claims paid under the mortgage assistance programs.

Variance Explanations

The ministry underspent its FTE resource complement by 149 positions in 2004/05. This FTE variance reflects the transfer of 217 positions to EAS as of December 2004 and ministry vacancies. For the next three-year period, the ministry has estimated its FTE resources at 837.

Operating expense variances are primarily due to the under expenditure of FTE resources and amortization savings.

Financing transactions resulted in disbursements exceeding receipts by approximately $1.5 million primarily due to disbursements related to the International Fuel Tax Agreement and the Land Tax Deferment Act.