Report on Resources
The Report on Resources provides an overview of ministry funding and expenditures during 2005/06, and provides comparisons to past years, as appropriate. This section also provides a Resource Summary for 2005/06 by core business area.
Ministry Funding
Total funding available for ministry operations in 2005/06 was $139.4 million. Refer to Resource Summary on page 64. The sources of ministry voted funding included:
- An appropriation of $44.0 million.
- Recoveries of $95.4 million. Ministry costs are partially recovered from revenues administered by the ministry (refer to Appendix D).
From 2002/03 to 2005/06, the ministry's estimates for gross expenditures increased from approximately $98 million to $139 million primarily due to the Revenue Management Project, new staffing resources, other operating costs including commissions on collection of public debt and interest on revenue refunds, and the addition of new programs related to the establishment of the new Ministry of Small Business and Revenue. Refer to Figure 6.
Estimates provided in the 2006/07 – 2008/09 Service Plan for the next three year period indicate a slight increase in both gross expenditures and recoveries primarily 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 EDS Advanced Solutions Inc. Net expenditures are projected to remain stable over this period.
Figure 6: Comparison of Gross Funding, Recoveries and Net Funding, 2002/03 – 2008/09.
| Source: 2002/03–2005/06 amounts correspond to the Estimates presented in the Legislative Assembly. 2006/07–2008/09 amounts are as reported in the ministry's 2006/07–2008/09 Service Plan. |
Ministry Expenditures
Ministry operating expenditures during 2005/06 totaled almost $139.0 million of which $95.3 million was recovered from revenues administered by the ministry. Refer to Resource Summary.
Ministry expenditures included:
- Salaries and benefits totaled $57.8 million accounting for 41.6 per cent of annual expenditures.
- Non-salary operating costs of $76.5 million accounted for 55.0 per cent of annual expenditures.
- Other expenses (e.g., interest expense, banking charges) accounted for $3.3 million or 2.4 per cent of expenditures.
- Government transfers totaled $1.3 million, accounting for less than one per cent of expenditures.
Capital expenditures in 2005/06 totaled almost $40.1 million, including $36.7 million22 for the Revenue Management Project and $3.4 million for other ministry capital projects.
The ministry made financing and transaction disbursements during 2005/06 totaling $971.3 million. These disbursements, directed by legislation, return a percentage of specific revenue to identified entities.
The gross expenditures in 2005/06 increased by $8.3 million compared to 2004/05 due primarily to the Revenue Management Project and the establishment of the new Ministry of Small Business and Revenue, which consolidated the former Ministry of Provincial Revenue with areas of responsibility related to small business development, regulatory reform and provincial property assessment and appeal processes. Refer to Figure 8.
| 22 | Ministry received capital contingencies of $5.3 million for the Revenue Management System capital lease liability. |
Ministry Revenue
The revenues managed by the ministry amounted to approximately $20.6 billion in 2005/06 or 58 per cent of all revenue received by the Province (refer to Figure 7). Revenues include:
- consumption taxes (provincial sales, hotel room, motor fuel and tobacco);
- property taxes (rural property, provincial school and property transfer)
- other taxes (corporation capital, insurance premiums, and logging);
- 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 Services Plan premiums and other fees (e.g., ruling fees, clearance certificates).
Revenue has increased over the past four years: $15.4 billion (2002/03), $17.0 billion (2003/04), $18.4 billion (2004/05) and $20.6 billion (2005/06).
Figure 7: 2005/06 Revenue by Type.
Figure 8: Expenditures 2002/03 – 2005/06.
| Core Business Area | 2002/03 Actual | 2003/04 Actual | 2004/05 Actual | 2005/06 Actual |
|---|---|---|---|---|
| Operating Expenses ($000) | ||||
| Small Business and Regulatory Reform1 | ||||
| Gross | — | — | — | 2,914 |
| Recoveries | — | — | — | — |
| Net | — | — | — | 2,914 |
| Revenue Programs | ||||
| Gross | 38,593 | 49,688 | 54,636 | 41,100 |
| Recoveries | (37,827) | (47,212) | (49,593) | (26,609) |
| Net | 766 | 2,476 | 5,043 | 14,491 |
| Revenue Services | ||||
| Gross | 8,764 | 13,157 | 13,982 | 55,479 |
| Recoveries | (8,418) | (12,656) | (13,320) | (43,616) |
| Net | 346 | 501 | 662 | 11,863 |
| Property Assessment Services1 | ||||
| Gross | — | — | — | 2,437 |
| Recoveries | — | — | — | (2,436) |
| Net | — | — | — | 1 |
| Executive and Support Services | ||||
| Minister's Office | 332 | 349 | 361 | 374 |
| Corporate Services: | ||||
| Gross | 36,630 | 46,845 | 61,686 | 36,658 |
| Recoveries | — | (1,390) | (21,900) | (22,640) |
| Sub-Total Net | 36,630 | 45,455 | 39,786 | 14,018 |
| Net | 36,962 | 45,804 | 40,147 | 14,392 |
| Total Gross | 84,319 | 110,039 | 130,665 | 138,962 |
| Total Recoveries | (46,245) | (61,258) | (84,813) | (95,301) |
| Total Net | 38,074 | 48,781 | 45,852 | 43,661 |
| Source: Amounts correspond to the Public Accounts for the years noted. | |
| 1 | The Small Business and Regulatory Reform and Property Assessment Services business areas became part of Ministry of Small Business and Regulatory Reform when it was established in June 2005. The remaining business areas constituted the former Ministry of Provincial Revenue. |
Resource Summary 2005/06
| Estimated1 | Other Authorizations2 | Total Estimated | Actual | Variance3 | |
|---|---|---|---|---|---|
| Operating Expenses ($000) | |||||
| Small Business and Regulatory Reform | |||||
| Gross | 1,205 | 1,205 | 2,914 | 1,709 | |
| Recoveries4 | — | — | — | — | |
| Net | 1,205 | 1,205 | 2,914 | 1,709 | |
| Revenue Programs | |||||
| Gross | 44,979 | 44,979 | 41,100 | (3,879) | |
| Recoveries4 | (26,609) | (26,609) | (26,609) | — | |
| Net | 18,370 | 18,370 | 14,491 | (3,879) | |
| Revenue Services (includes special account)5 | |||||
| Gross | 52,079 | 52,079 | 55,479 | 3,400 | |
| Recoveries4 | (43,616) | (43,616) | (43,616) | 0 | |
| Net | 8,463 | 8,463 | 11,863 | 3,400 | |
| Operating Expenses ($000) | |||||
| Property Assessment Services | |||||
| Gross | 2,508 | 2,508 | 2,437 | (71) | |
| Recoveries4 | (2,507) | (2,507) | (2,436) | 71 | |
| Net | 1 | 1 | 1 | — | |
| Executive and Support Services | |||||
| Minister's Office | 430 | 430 | 374 | (56) | |
| Corporate Services | |||||
| Gross | 38,185 | 38,185 | 36,658 | (1,527) | |
| Recoveries4 | (22,640) | (22,640) | (22,640) | — | |
| Net | 15,545 | 15,545 | 14,018 | (1,527) | |
| Total Gross | 139,386 | 139,386 | 138,962 | (424) | |
| Total Recoveries4 | (95,372) | (95,372) | (95,301) | 71 | |
| Total Net | 44,014 | 44,014 | 43,661 | (353) | |
| Full-time Equivalents6(FTEs) | |||||
| Small Business and Regulatory Reform | 9 | 9 | 11 | 2 | |
| Revenue Programs | 526 | 526 | 494 | (32) | |
| Revenue Services | 131 | 131 | 120 | (11) | |
| Property Assessment Services | 13 | 13 | 14 | 1 | |
| Executive and Support Services | 180 | 180 | 180 | — | |
| Total | 859 | 859 | 819 | (40) | |
| Ministry Capital Expenditures (Consolidated Revenue Fund) ($000) | |||||
| Revenue Programs | 0 | 0 | 138 | 138 | |
| Revenue Services | 21,348 | 5,315 | 26,663 | 36,650 | 9,987 |
| Property Assessment Services | 96 | 96 | 0 | (96) | |
| Executive and Support Services | 13,335 | 13,335 | 3,306 | (10,029) | |
| Total | 34,779 | 5,315 | 40,094 | 40,094 | 0 |
| Other Financing Transactions7($000) | |||||
| Revenue Programs | |||||
| Receipts | 983,500 | 565 | 984,065 | 957,768 | (26,297) |
| Disbursements | 985,100 | 6,282 | 991,382 | 971,273 | (20,109) |
| Net Cash Source (Requirements) | (1,600) | (5,717) | (7,317) | (13,505) | (6,188) |
| Special Accounts — Provincial Home Acquisition Wind Up5 | |||||
| Receipts | 50 | 50 | 133 | 83 | |
| Disbursements | 40 | 40 | 0 | (40) | |
| Net Cash Source (Requirements) | 10 | 10 | 133 | 123 | |
| Total Receipts | 983,550 | 565 | 984,115 | 957,901 | (26,214) |
| Total Disbursements | 985,140 | 6,282 | 991,422 | 971,273 | (20,149) |
| Total Net Cash Source (Requirements) | (1,590) | (5,717) | (7,307) | (13,372) | (6,065) |
| 1 | The "Estimated" amount corresponds to the Estimates as presented to the Legislative Assembly in September 2005. |
| 2 | "Other Authorizations" include Supplementary Estimates, Statutory Appropriations and Contingencies. The ministry received a capital contingency of $5.3 million for costs related to the Revenue Management Project. |
| 3 | Variance display convention is consistent with the display convention used 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 the statutes listed in Appendix D. |
| 5 | 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 accounts and guarantee claims paid under the mortgage assistance programs. |
| 6 | FTEs — fulltime equivalent employment is the estimate of a ministry's annual staff utilization. The term fulltime equivalent is defined as the employment of one person for one full year or the equivalent (for example, the employment of two persons for six months each). |
| 7 | 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, Transportation Act, Greater Vancouver Transportation Authority Act, Rural Area Property Taxes, Tobacco Tax Amendment Act, Tourism British Columbia (Hotel Room Tax Act). |
Variance Explanations
Overall, ministry variances are not material. However, several core business area variances are worthy of note.
Operating expense variances include:
- Small Business and Regulatory Reform — over expenditure due to additional FTE resources, funding to support the permanent Small Business Roundtable and grants provided to support entrepreneurship education programs.
- Revenue Programs Division — under expenditure of FTE resources due to staff vacancies.
- Revenue Services Division — primarily due to the benefits paid to the ministry's private sector service provider being larger than budgeted for the fiscal year reflecting performance in excess of baseline.
- Executive and Support Services — under expenditure primarily due to savings in amortization expenses.
Financing transactions resulted in disbursements exceeding receipts by approximately $13.4 million primarily due to disbursements related to the Land Tax Deferment Act.
