Report on Resources
The annual budget is based on core business assumptions contained in the ministry's three-year Service Plan. The plan utilized forecasts of expenditure and caseload trends, plus anticipated impacts of legislative, policy and program changes. Ministry overall financial results are sensitive to fluctuations in caseload and program demand. The ministry manages its core businesses with the objective of achieving its overall budget.
88% of ministry expenditures provided direct assistance and employment supports to clients.
Resource Summary Table 2005/06
| Total Estimated1 | Actual | Variance | |
|---|---|---|---|
| Operating Expenses ($000) | |||
| Employment Programs | 79,370 | 91,701 | (12,331) |
| Temporary Assistance | 355,187 | 318,162 | 37,025 |
| Disability Assistance | 580,423 | 573,528 | 6,895 |
| Supplementary Assistance | 172,479 | 205,255 | (32,776) |
| Employment and Assistance Appeal Tribunal | 1,819 | 1,832 | (13) |
| Executive and Support Services | 165,682 | 159,237 | 6,445 |
| Total before Adjustment | 1,354,960 | 1,349,716 | 5,244 |
| Adjustment to Prior Year's Accrual | 0 | (22,529) | 22,529 |
| Total | 1,354,960 | 1,327,187 | 27,773 |
| Full-time Equivalents (FTEs) | |||
| Employment and Assistance Appeal Tribunal | 14 | 14 | 0 |
| Executive and Support Services | 1,959 | 1,841 | 118 |
| Total | 1,973 | 1,855 | 118 |
| Ministry Capital Expenditures (Consolidated Revenue Fund) ($000) | |||
| Employment and Assistance Appeal Tribunal | 35 | 0 | 35 |
| Executive and Support Services | 17,472 | 4,567 | 12,905 |
| Total | 17,507 | 4,567 | 12,940 |
| 1 | These amounts have been restated, for comparative purposes only, to be consistent with the presentation of the 2005/06 Estimates. Schedule A of the Estimates presents a detailed reconciliation. |
Explanation of Variances
Employment Programs
The over-expenditure of $12.3 million or 15.5 per cent reflects the current year costs of concluding the Job Placement Program and paying for services received. The new BC Employment Program (BCEP) will replace the Job Placement and Training for Jobs programs. BCEP was designed in response to the changing nature of the ministry's caseload and the requirement to provide increasingly barriered clients with flexible programming to meet their needs.
Temporary Assistance
The under-expenditure of $37.0 million, or 10.4 per cent, is the result of a significantly lower Temporary Assistance caseload. The employable caseload has declined as a result of a revived provincial economy and ministry policies which support getting clients into jobs. The Temporary Assistance actual average caseload was approximately 46,000, 10 per cent lower than the budgeted average caseload of 50,500.
Disability Assistance
The under-expenditure of $6.9 million or 1.2 per cent is the result of a lower cost per case for the Persons with Disabilities caseload. The Persons with Disabilities actual caseload average was 57,500 — one per cent higher than the budgeted average caseload of 57,000.
Supplementary Assistance
The over-expenditure of $32.8 million or 19 per cent is the result of various ministry expenditures aimed to help build the best system of support in Canada for persons with disabilities, those with special needs, children at risk, and seniors; and the Premier's Taskforce on Homelessness, Mental Illness and Addictions. These expenditures are tangible evidence of the ministry's commitment to work collaboratively with other provincial social sector ministries and agencies as well as non profit agencies and local governments.
Executive and Support Services
The under-expenditure of $6.4 million or 3.9 per cent is primarily due to reduced expenditures in information systems and facilities.
Full Time Equivalency (FTE)
The ministry's FTE budget was under by 118 FTEs or 6 per cent in anticipation of the transfer of the Child Care Services program to the Ministry of Children and Family Development in fiscal 2006/07. As outlined in the transfer agreement, the Ministry of Employment and Income Assistance agreed to retain the Child Care Service staff in the ministry. To ensure positions were available for all staff, the ministry elected not to permanently fill vacancies as they become available.
Capital Expenditures
The ministry's capital budget was under spent by $13 million, or 74 per cent, due to changing priorities in the information technology capital plan.
Adjustment to Prior Year’s Accruals
The adjustment to prior year's accruals is primarily comprised of a reduction in the ministry’s allowance for doubtful accounts, to reflect improvements in the collection of accounts receivable. At March 31, 2006, the gross value of the ministry’s accounts receivable was $207.9 million with an allowance for doubtful accounts of $164.5 million, for a net value of $43.4 million.
