Enquêtes internationales et de nature délicate

Le groupe des Enquêtes internationales et de nature délicate (EIND) enquête sur des sujets délicats et à risque élevé qui représentent une menace pour l'intégrité politique, économique ou sociale du Canada et de ses institutions, au Canada et dans le reste du monde. Les délits qui font l'objet d'enquêtes ne sont pas déterminés par la juridiction d'une région ou d'un territoire, mais bien par la nature des délits eux-mêmes.

Équipe de lutte contre la corruption internationale

• Cette équipe enquête sur les entreprises canadiennes, les citoyens ou les résidents canadiens qui corrompent des agents publics étrangers aux termes de la Loi sur la corruption d'agents publics étrangers (LCAPE) ou du Code criminel du Canada (fraude, blanchiment d'argent, abus de confiance).

• L'équipe répond aux demandes liées aux traités d'entraide politique, adressées au Canada par des administrations étrangères, et relatives à des cas de corruption à l'étranger.

Équipe d'enquête sur la corruption à l'échelle nationale et enquêtes de nature politique

• Cette équipe enquête sur les allégations de crimes financiers comme la fraude et la corruption commises par des fonctionnaires fédéraux au niveau de la direction et de la haute direction.
• L'équipe enquête sur des élus, des sénateurs et des hauts fonctionnaires du gouvernement fédéral en réponse à des allégations de fraude, de crimes financiers, de corruption et d'abus de confiance.
• L'équipe enquête sur des allégations de crimes financiers commis contre le gouvernement fédéral ou contre ses institutions. La nature délicate des allégations peut avoir préséance sur un seuil quantitatif.
• L'équipe enquête sur les allégations d'activités de lobbying illégales.

Crimes de guerre et torture

• Cette équipe enquête sur les allégations de génocide, de crimes contre l'humanité ou de crimes de guerre commis par des citoyens canadiens (vivant au Canada ou à l'étranger), par une personne présente ou en visite au Canada, ou si la victime avait la citoyenneté canadienne au moment du crime.
• L'équipe enquête sur les allégations de torture de citoyens canadiens par des ressortissants étrangers à l'extérieur du Canada.

Cybercriminalité

• Cette équipe enquête sur les cyberincidents contre la technologie qui ont des conséquences à l'échelle nationale. Ces incidents comprennent les cyberattaques sur les infrastructures essentielles et sur les systèmes du gouvernement du Canada.
• L'équipe enquête sur les cyberincidents parrainés par des États.
• L'équipe prête assistance à des administrations étrangères lors de cyberincidents.

Sensitive and International Investigations

Sensitive and International Investigations (SII) investigate sensitive, high risk matters that cause significant threats to Canada's political, economic and social integrity of its institutions across Canada and internationally. Jurisdiction over offences investigated is not limited by a territory/region but by the nature of the offence.

International Anti-Corruption Team

• Investigate Canadian companies, Canadian citizens or residents bribing foreign officials under the Corruption of Foreign Public Official's Act (CFPOA) or the Canadian Criminal Code (Fraud, Money Laundering (ML), Breach of Trust); and
• Assist foreign jurisdictions with Mutual Legal Assistant Treaty (MLAT) requests to Canada regarding foreign bribery.

Domestic Corruption & Political Investigations

• Investigate allegations of financial crimes such as fraud, corruption, procurement on Federal employees at the Director & higher management level;
• Investigate elected officials, Senators or Executives of the Federal government on allegations of fraud, financial crimes, corruption & breach of trust;
• Investigate allegations of financial crimes committed against the Federal government and or its institutions. The sensitive nature of the allegation may supercede a threshold amount; and
• Investigate allegations of illegal lobbying activities.

War Crimes & Torture

• Investigate allegations of genocide, crimes against humanity or war crimes committed by Canadian citizens (living in or outside Canada), by an individual being present or visiting Canada, or if the victim was a Canadian citizen at the time of the crime; and
• Investigate allegations of torture to Canadian citizens while outside of Canada by foreign officials.

Cyber Crime

• Investigate cyber incidents where technology is the target and that has an impact at a national level. This includes cyber attacks to critical infrastructure and government of Canada systems;
• Investigate state sponsored cyber incidents; and
• Assist foreign jurisdictions as it relates to cyber incidents.

Quarterly Financial Report - For the period ending September 30, 2019

Statement outlining results, risks and significant changes in operations, personnel and program

1. Introduction

This quarterly financial report (QFR) has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. The report should be read in conjunction with the Main Estimates for 2019-20, as well as Budget 2019. The quarterly report has not been subject to an external audit or review.

1.1 Mandate

The Minister of Public Safety and Emergency Preparedness is the minister responsible for the Royal Canadian Mounted Police (RCMP). The responsibilities of the RCMP are set out in section 18 of the Royal Canadian Mounted Police Act. The RCMP's mandate is multi-faceted, it includes preventing and investigating crime; maintaining peace and order; enforcing laws; contributing to national security; ensuring safety of state officials, visiting dignitaries and foreign missions; and providing vital operational support services to other police and law enforcement agencies within Canada and abroad.

Further information on the mandate, roles, responsibilities and programs of the RCMP can be found in the Part II of the Main Estimates.

1.2 Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the RCMP's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates, the Operating Budget Carry Forward and Capital Budget Carry Forward for the 2019-20 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes.

The RCMP uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on a cash expenditure basis.

2. Highlights of the fiscal quarter and fiscal year-to-date (YTD) results

2.1 Statement of Authorities

For the period ending September 30, 2019, the RCMP had $3,660.2 million in total authorities available for use, as reflected in Annex A: Statement of Authorities. This amount includes the Main Estimates, RCMP Budget 2019 Implementation Votes, Operating Budget Carry Forward, Capital Budget Carry Forward, in-year statutory adjustments, transfer from Treasury Board (TB) central Vote 10 – Government-wide initiatives and proceeds collected from the disposal of Crown assets, as displayed in Graph 1: Comparison of Total Budgetary Authorities below.

Total authorities have decreased by $55.8 million, when compared to the previous year, which includes a year-over-year decrease of $41.0 million in Vote 1 – Operating expenditures, a $43.5 million decrease in Vote 5 – Capital expenditures and a $4.0 million decrease in Budgetary statutory authorities. These decreases are partially offset by an increase of $32.8 million in Vote 10 – Grants and Contributions. The overall decrease is primarily related to the net decrease of $113.8 million in the 2019-20 Main Estimates, a decrease of $36.9 million in the Operating and Capital Budget Carry Forward and a decrease of $3.67 million in the proceeds collected from the disposal of Crown assets. Part of this decrease is offset by a net increase of $90.7 million related to Budget 2019 over Budget 2018 items received through Budget 2018 and 2019 Implementation Votes and $7.6 million related to in-year statutory adjustments.

Graph 1: Comparison of total budgetary authorities as of September 30, 2018 and September 30, 2019 (in millions of dollars)

For more information on the authority changes impacting the RCMP we would direct the reader to our 2019-20 Main Estimates.

2.1.1 Variance in Vote 1 – Net operating expenditure authorities

The decrease of $41.0 million in Vote 1 – Net Operating expenditures, reflected in Table 1: Authorities Available for Use is primarily related to sunsetting of the funding for the 2018 G7 Summit in Charlevoix, Quebec ($126.9 million), a net reduction in the Operating Budget Carry Forward ($31.6 million), a decrease in funding for a re-allocation of funds to Shared Services Canada to modernize and enhance the Government's digital services ($11.4 million), a net reduction of funding for the International Peacekeeping and Peace Operations ($5.1 million), as well as, some sunsetting of funding announced in prior years Budgets ($13.9 million). These decreases are partially offset by Budget 2019 initiatives such as funding for strengthening the RCMP frontlines operations ($78.4 million), Enhancing Integrity of Canada's Borders and Asylum System ($12.4 million), Delivering Better Service for Air Travel ($2.9 million) and Protecting Canada's National Security ($0.8 million). They are also offset by funding for ensuring security and prosperity in the Digital age ($14.0 million), funding for additional investigative resources to counter terrorism ($6.4 million), funding to increase forensic toxicology capacity in support of the new drug-impaired driving regime ($5.6 million), funding to take action against gun & gang violence ($5.3 million), as well as, funding increases of initiatives announced in prior years' Budgets ($20.9 million).

2.1.2 Variance in Vote 5 – Capital expenditure authorities

Capital authorities have decreased by $43.5 million when compared to the second quarter of 2018-19. The decrease is due to projects nearing completion including the new RCMP National Forensic Laboratory Services facilities ($23.1 million), a number of federal infrastructure assets ($20.0 million), the construction of a new National Operation Center ($8.6 million) and a net reduction in the Capital Budget Carry Forward ($5.4 million). These decreases are partially offset by an increase in funding for ensuring security and prosperity in the Digital age ($11.2 million) and in funding to increase forensic toxicology capacity in support of the new drug-impaired driving regime ($4.3 million).

2.1.3 Variance in Vote 10 – Grants and contributions

The increase of $32.8 million in Grants and contributions authorities is related to increases in the grant to compensate members of the RCMP for injuries received in the performance of their duties. The increase is as a result of a higher number of Members receiving disability pension awards, and the reassessment and indexation of disability pension benefits.

2.1.4 Variance in Budgetary statutory authorities

The net decrease in budgetary statutory authorities of $4.0 million is primarily related to decrease in the rate used to calculate Employee Benefit Plan costs ($8.7 million). There are also decreases related to funding for the Pension Continuation Act (PCA) statutory grant ($1.5 million) as there are fewer recipients and smaller proceeds collected from the disposal of Crown assets ($3.6 million). These decreases are offset by additional Employee Benefit Plan funding received primarily related to initiatives announced in Budget 2019 ($9.8 million).

2.2 Statement of Departmental Budgetary Expenditures by Standard Object

The RCMP has spent approximately 53% of its authorities at the end of the second quarter, which is in line with the previous year, as demonstrated in Graph 2: Comparison of Total Budgetary Authorities and Net Expenditures below, when vote netted revenue is taken into consideration.

Graph 2: Comparison of Total Budgetary Authorities and Net Expenditures as of September 30, 2018 and September 30, 2019 (in millions of dollars and percentage)

Table 2: Net Expenditures by standard objects at the end of the second quarter 2019-20 was at 0.1% or $1.7 million higher than the previous year. This variance is primarily the result of a decrease in gross budgetary expenditures of $139.4 million (or 5%) from the previous year, in addition to $141.1 million (or 20%) in decreased revenue collections. A detailed review by standard object emphasizes some significant variances which are described below.

2.2.1 Variance by revenues and other reductions

Vote netted revenue collected in the second quarter of 2019-20 decreased by $141 million (or 20%) compared to the same period last year. The decrease is related primarily to the implementation of the new funding model for Contract Policing. Revenues received in the first quarter of 2018-19 were recorded using the old model and treated as re-spendable revenue (VNR). Revenues collected in the first two quarters in 2019-20 have been split between those that are re-spendable and those that are required to be deposited to the Consolidated Revenue Fund.

2.2.2 Variance by information

Information increased by $0.2 million (or 24%) over the same period last year. This increase is related to the timing of invoices and expenditures incurred earlier in the fiscal year compared to the previous year.

2.2.3 Variance by rentals

Rentals have decreased by $34.4 million (or 41%) when compared to 2018-19. This decrease is largely due to one-time costs of security related to the G7 summit held in 2018-19.

2.2.4 Variance by purchased repair and maintenance

Purchased Repair and Maintenance increased by $7.75 million (or 22%) compared to 2018-19. This is related for the most part to the renovation costs of buildings within the Contract Policing program.

2.2.5 Variance by acquisition of land, buildings and works

Acquisitions of Land, Buildings and Works expenditures have decreased by $10 million (or 26%) when compared to the same period in 2018-19. This decrease primarily relates to a reduction in expenditures for the construction of the new RCMP National Forensic Laboratory Services facilities.

2.2.6 Variance by Acquisition of machinery and equipment

Acquisition of machinery and equipment decreased by $37.1 million (or 34%) when compared to the same period in 2018-19 - which is primarily due to one-time expenditures for security costs related to the G7 Summit held in 2018-19. The remaining variance is largely as a result of timing differences in the acquisition of annual inventories, information management and information technology invoices, and investigational aids.

2.2.7 Variance by transfer payments

Increases of $43 million (or 23%) in Transfer Payments are related to the Grant to compensate members injured in the performance of their duties resulting from an increase in the number of members receiving disability pension awards and increase to the benefits paid to existing recipients as a result of worsening disabilities and increases due to the indexation of disability pension benefits.

2.2.8 Variance by other subsidies and payments

Other subsidies and payments have decreased by $26.5 million (or 41 %) when compared to 2018-19. This decreased is primarily due to the timing of items being cleared from suspense accounts.

3. Risks and uncertainties

The Departmental QFR reflects the results of the current fiscal period in relation to the Main Estimates, the Operating Budget Carry Forward and the Capital Budget Carry Forward.

The RCMP is funded through annual appropriations and are, therefore, impacted by any changes in funding approved through Parliament. In addition, it receives a significant portion of funding through vote netted revenue (VNR) from the provision of policing services to provinces, territories, municipalities and first nations communities, as well as from cost sharing agreements with provinces and territories for the provision of DNA analysis by the RCMP. The RCMP also receives VNR authorities to bill Parliamentary Protective Service (PPS) for the provision of security services throughout the Parliamentary precinct and the grounds of Parliament Hill.

On October 6, 2016, the RCMP announced that a settlement agreement had been reached between the RCMP and the plaintiffs in the Merlo and Davidson lawsuits filed on behalf of current and former female regular members, civilian members and public service employees. The settlement agreement was approved by the Federal Court and includes an independent claims process with compensation for women working, or having worked, at the RCMP who experienced harassment, bullying or discrimination based on their gender or sexual orientation during their employment from September 16, 1974 until May 30, 2017. The assessment of claims is the responsibility of an Independent Assessor appointed by the Federal Court. The window in which class members could file claims ran from August 12, 2017 to May 22, 2018. According to statistics posted on the Independent Assessor's website, a total of 3,131 claims were filed. As claims are assessed by the Independent Assessor, compensation awards are currently being paid to successful claimants in accordance with the terms of the settlement.

Given the increasing demands on RCMP resources, particularly on National Security files, the RCMP is facing significant resourcing challenges. The increased concerns around terrorism and extremism, cybercrime, changing demographics, population growth and rapid technological advancements continues to create unanticipated operational requirements and increase the existing organizational costs.

In recent years, the RCMP's reference levels have been constrained by government-wide spending reduction exercises which have resulted in significant financial pressures. In order to assess the financial integrity issues faced by the RCMP and serve as the basis for longer term strategic recommendations to the Minister of Public Safety and Emergency Preparedness, a comprehensive resourcing review was undertaken, and a final report was completed in May 2017. The review findings have been assessed and the RCMP returned to Treasury Board with a fulsome Departmental Review in the fall of 2018 that included short, medium and long-term proposals to address its ongoing resourcing issues. Although Ministers supported the proposed path forward in principle and Budget 2019 identified funding to Strengthening RCMP Operations, the RCMP continues to face challenges to address all of its financial integrity issues and move forward its modernization agenda.

4. Significant changes in relation to operations, personnel and programs

4.1 Operations

In comparison to the second quarter of 2018-19, the RCMP has the conclusion of security measures in support of Canada Hosting the G7 Summit. Due to the nature, and overall magnitude of the G7 Summit, the RCMP's expenditures in many Standard Objects increased in 2018-19, the RCMP will see significant reductions in many of these areas throughout 2019-20.

4.2 Personnel

Subsequent to the end of the second quarter, the Prime Minister announced changes to the senior ranks of the department as follows, effective September 16, 2019:

• Mr. Kevin Stringer, previously Associate Deputy Minister of the Department of Fisheries and Oceans becomes Chief Administrative Officer of the Royal Canadian Mounted Police.
• Mrs. Gail Johnson, previously Assistant Deputy Minister of Employment and Social Development Canada becomes Chief Human Resources Officer of the Royal Canadian Mounted Police

4.3 Programs

There has been no significant change in relation to programs in the second quarter of 2019-20.

Approved by senior officials

Approved by:

Ottawa, Canada

Date: Nov 26,2019

Annex A: Statement of Authorities (unaudited)

Annex B: Departmental budgetary expenditures by standard object (unaudited)

Rapport financier trimestriel pour le trimestre se terminant le 30 septembre 2019

1. Introduction

Le présent rapport financier trimestriel a été préparé par la direction, comme l'exige l'article 65.1 de la Loi sur la gestion des finances publiques et suivant la forme et la manière prescrites par le Conseil du Trésor. Le rapport doit être lu en corrélation avec le Budget principal des dépenses pour l'exercice 2019-2020, ainsi que le Budget fédéral de 2019. Ce rapport trimestriel n'a pas fait l'objet d'une vérification ou d'un examen externe.

1.1 Mandat

Le ministre de la Sécurité publique et de la Protection civile est responsable de la Gendarmerie royale du Canada (GRC). Les responsabilités ministérielles sont énoncées à l'article 18 de la Loi sur la Gendarmerie royale du Canada. Le mandat de la GRC comporte plusieurs volets, notamment prévenir la criminalité et mener des enquêtes, maintenir la paix et l'ordre, faire respecter les lois, contribuer à la sécurité nationale, veiller à la sécurité des représentants de l'État, des dignitaires en visite et des membres de missions étrangères, et fournir des services de soutien opérationnel vitaux à d'autres organismes de police et d'exécution de la loi au Canada et à l'étranger.

Pour obtenir un complément d'information sur le mandat, les rôles, les responsabilités et les programmes de la GRC, consulter la Partie II – Budget principal des dépenses.

1.2 Méthode de présentation

La direction a établi le présent rapport trimestriel suivant une comptabilité axée sur les dépenses. L'état des autorisations joint au rapport inclut les autorisations de dépenser de la GRC qui lui sont accordés par le Parlement et celles qui sont utilisées par le Ministère en conformité avec le Budget principal des dépenses, le report du budget de fonctionnement et le report du budget des dépenses en capital pour l'exercice 2019 2020. Le présent rapport trimestriel a été établi à l'aide d'un référentiel à usage particulier conçu pour répondre aux besoins de données financières à l'égard de l'utilisation des autorisations de dépenser.

Le gouvernement ne peut pas dépenser sans l'autorisation préalable du Parlement. Les autorisations sont accordées par la voie de lois portant affectation de crédits, sous forme de limites annuelles, ou par la voie de lois accordant des pouvoirs de dépenser à des fins déterminées.

La GRC utilise la méthode de la comptabilité d'exercice intégrale pour l'établissement de ses états financiers annuels, qui font partie du processus de rapport sur le rendement ministériel. Toutefois, les autorisations de dépenser votées par le Parlement sont encore établies en fonction d'une comptabilité axée sur les décaissements.

2. Faits saillants des résultats financiers trimestriels et cumulatifs

2.1 État des autorisations

Pour la période se terminant le 30 septembre 2019, le total des autorisations pouvant être utilisées par la GRC s'élevait à 3 660,2 millions de dollars, comme l'indique l'annexe A, État des autorisations. Ce montant comprend le Budget principal des dépenses, le transfert des crédits de la GRC pour l'exécution du Budget fédéral de 2019, le report du budget de fonctionnement, le report du budget des dépenses en capital, les ajustements en cours d'exercice aux postes législatifs, le transfert du crédit central 10 du Conseil du Trésor (CT) Initiatives pangouvernementales et les produits de la vente de biens de l'État, comme il est illustré au graphique 1 : Comparaison des autorisations budgétaires totales, ci-dessous.

Par rapport à l'exercice précédent, les autorisations totales ont diminué de 55,8 millions de dollars, ce qui comprend une diminution sur douze mois de 41,0 millions de dollars du crédit 1 - Dépenses de fonctionnement, une augmentation de 38,1 millions de dollars du crédit 5 – Dépenses en capital, une diminution de 4,0 million de dollars liés aux autorisations législatives budgétaires et une hausse de 32,8 millions de dollars du crédit 10 – Subventions et contributions. Cette baisse globale est attribuable à une diminution nette de 113,8 millions de dollars dans le Budget principal des dépenses de 2019-2020, à une baisse de 3,67 millions de dollars liée aux produits de la vente de biens de l'État. Une partie de cette diminution est compensée par une augmentation de 98,6 millions de dollars provenant des annonces du Budget fédéral de 2019 contenu dans les crédits d'exécution du Budget à la GRC.

Graphique 1 : Comparaison des autorisations budgétaires totales – au 30 septembre 2018 et au 30 septembre 2019 (en millions de dollars)

2.1.1 Écart au titre du crédit 1 – Dépenses nettes de fonctionnement

La diminution de 41,0 millions de dollars au titre des autorisations nettes de fonctionnement, indiquée dans le tableau 1 : Crédits totaux disponibles, est principalement liée à la temporisation du financement pour appuyer les coûts différentiels associés à la tenue du Sommet du G7 de 2018 dans Charlevoix, au Québec (126,9 millions de dollars), une diminution nette du report du budget de fonctionnement (31,6 millions de dollars), une réallocation à Services partagés Canada du financement pour augmenter et moderniser les services numériques du Gouvernement (11,4 millions de dollars), une diminution nette du financement des opérations internationales de maintien et de soutien de paix (5,1 millions de dollars), ainsi que des temporisations de financements annoncés dans les budgets fédéraux des années passées (13,9 millions de dollars). Ces diminutions sont partiellement compensées par des initiatives contenues dans le budget fédéral de 2019 comme le renforcement des opérations policières de la GRC (78,4 millions de dollars) et l'accroissement de l'intégrité des frontières et du système d'octroi de l'asile du Canada (12,4 millions de dollars), l'offre d'un meilleur service aux passagers du transport aérien (2,9 millions de dollars) et la protection de la sécurité nationale du Canada (0,8 million de dollars). Elles sont aussi compensées par le financement pour assurer la sécurité et prospérité à l'ère numérique (14,0 millions de dollars), financement des capacités d'enquête accrues à l'appui des activités antiterroristes (6,4 millions de dollars), financement pour augmenter la capacité de toxicologie judiciaire à l'appui du nouveau régime relatif à la conduite avec facultés affaiblies par la drogue (5,6 millions de dollars), au financement pour l'Initiative de lutte contre la violence liée aux armes à feu et aux gangs (5,3 millions de dollars) ainsi que des augmentations de financements pour des initiatives annoncées dans les budgets fédéraux des années passées (20,9 millions de dollars).

2.1.2 Écart au titre du crédit 5 – Dépenses en capital

Les autorisations de dépenses en capital ont diminué de 43,5 millions de dollars par rapport au deuxième trimestre de 2018 2019. Cette baisse résulte de l'achèvement prochaine des projets comme le laboratoire des Services nationaux de laboratoire judiciaire de la GRC (23,1 millions de dollars), un nombre de mise à niveau des biens d'infrastructure fédéraux (20,0 millions de dollars) et la construction du nouveau Centre national des opérations (8,6 millions de dollars) et Une diminution nette du report du budget de dépenses en capital (5,4 millions de dollars). Ces baisses sont partiellement compensées par une augmentation du financement pour assurer la sécurité et prospérité à l'ère numérique (11,2 millions de dollars) et financement pour augmenter la capacité de toxicologie judiciaire à l'appui du nouveau régime relatif à la conduite avec facultés affaiblies par la drogue (4,3 millions de dollars).

2.1.3 Écart au titre du crédit 10 – Subventions et contributions

La hausse de 32,8 millions de dollars au titre des autorisations pour Subventions et contributions découle des augmentations de la subvention servant à indemniser les membres de la GRC pour des blessures subies dans l'exercice de leurs fonctions. L'augmentation est nécessaire en raison de l'augmentation du nombre de membres touchant une pension ou une indemnité d'invalidité et de la réévaluation et de l'indexation des prestations de la pension d'invalidité.

2.1.4 Écart au titre des autorisations législatives budgétaires

La baisse nette de 4,0 millions de dollars au titre des autorisations législatives budgétaires est principalement liée à la baisse apportée au taux utilisé pour calculer le coût des régimes d'avantages sociaux des employés (8,7 millions de dollars). Il y a aussi des diminutions liées à la subvention législative de la Loi sur la continuation des pensions de la GRC de 1,5 million de dollars en raison d'une baisse du nombre de bénéficiairesetd'une diminution des produits de la vente des biens de l'État de 3,6 millions de dollars. Ces diminutions sont compensées par le financement additionnel des régimes d'avantages sociaux des employés provenant principalement des annonces contenues dans le budget fédéral de 2019 (9,8 millions de dollars).

2.2 État des dépenses ministérielles budgétaires par article courant

À la fin du deuxième trimestre, la GRC avait dépensé environ 53 % des sommes autorisées, qui est comparable à la même période l'exercice précédent, comme le montre le graphique 2 : Comparaison des autorisations budgétaires totales et des dépenses nettes, ci-dessous, en tenant compte des recettes nettes en vertu d'un crédit.

Graphique 2 : Comparaison des autorisations budgétaires totales et des dépenses nettes – au 30 septembre 2018 et au 30 septembre 2019 (en millions de dollars et en pourcentages)

Le tableau 2 : Dépenses nettes par article courant en fin de trimestre montre une augmentation nette de 1,7 million de dollars (soit 0,1 %) en 2019 2020 par rapport à la même période l'année précédente. Cette hausse résulte de la diminution des recettes nettes en vertu d'un crédit. Cette écart est principalement attribuable à une réduction des dépenses brutes par rapport à la même période l'année précédente de 139,4 millions de dollars (soit 5%), et une baisse de 141,1 millions de dollars (soit 20%) en recettes perçues. Un examen détaillé par article courant fait ressortir des écarts importants, qui sont expliqués ci-dessous.

2.2.1 Écart au titre des revenues

Les recettes nettes en vertu d'un crédit perçues au deuxième trimestre de 2019 2020 ont baissé de 141 millions de dollars (soit 20 %) par rapport à la même période l'an dernier. La baisse est principalement attribuable au nouveau modèle de financement de la Police contractuelle. Les recettes perçues au premier trimestre de 2018 2019 ont été consignées au moyen de l'ancien modèle et traitées comme étant des recettes disponibles. Les recettes perçues au premier trimestre de 2019 2020 ont été divisées entre les recettes disponibles et les recettes qui doivent être déposées au Trésor public.

2.2.2 Écart au titre de l'information

Les dépenses au titre de l'information ont augmenté de 0,2 million de dollars (soit 24%) par rapport à la même période l'an dernier. L'augmentation s'explique principalement par le décalage du traitement des factures et des dépenses engagées en début d'exercice par rapport à la même période l'an dernier.

2.2.3 Écart au titre des locations

Les dépenses au titre des locations ont baissé de 34,4 millions de dollars (soit 41 %) par rapport à 2018 2019, ce qui s'explique principalement par les dépenses ponctuelles liées à la sécurité du Sommet du G7 tenu en 2018-2019.

2.2.4 Écart au titre des achats des services de réparation et d'entretien

Les dépenses imputables à l'achat de services de réparation et d'entretien ont augmenté de 7,75 millions de dollars (soit 22 %) en raison du coût plus élevé de la rénovation des immeubles du programme de la Police contractuelle.

2.2.5 Écart au titre de l'acquisition de terrains, de bâtiments et d'ouvrages

Les dépenses au titre d'acquisition de terrains, de bâtiments et d'ouvrages ont diminué de 10 millions de dollars (soit 26 %) par rapport à 2018 2019, ce qui s'explique principalement par une réduction des dépenses pour la construction de nouvelles installations pour les Services des laboratoires judiciaires de la GRC.

2.2.6 Écart au titre de l'acquisition de machines et de matériel

Les dépenses au titre d'acquisition de machines et de matériel ont baissé de 37,1 millions de dollars (soit 34 %) par rapport à 2018 2019, ce qui s'explique principalement par les dépenses liées à la sécurité du Sommet du G7 tenu en 2018 2019. Le reste de l'écart s'explique en grande partie par le décalage du traitement des factures reçues pour l'acquisition des stocks annuels, pour la gestion de l'information et la technologie de l'information, et pour les outils d'enquête.

2.2.7 Écart au paiements de transferts

Augmentation de 43 millions de dollars (ou 23 %) au titre des paiements de transfert attribuable à la subvention pour indemniser les membres blessés dans l'exercice de leurs fonctions, qui a dû être augmentée en raison de la hausse du nombre de membres qui touchent une pension d'invalidité, de l'augmentation des prestations versées aux bénéficiaires par suite d'une aggravation de leur invalidité et de l'indexation annuelle des prestations de pension d'invalidité.

2.2.8 Écart au titre subventions et paiements

Les dépenses au titre des subventions et paiements ont diminué de 26,5 millions de dollars (soit 41%) en comparaison à 2018 2019. Cette augmentation s'explique principalement par le moment où des articles ont été supprimés des compte d'attentes.

3. Risques et incertitudes

Le rapport financier trimestriel du Ministère fait état des résultats de la période comptable en cours par rapport au Budget principal des dépenses, le report du budget de fonctionnement et le report du budget de dépenses en capital.

Étant donné que la GRC est financée au moyen de crédits annuels, toute modification des fonds approuvés par le Parlement influe sur son fonctionnement. La GRC reçoit par ailleurs une partie importante de son financement en recettes nettes en vertu d'un crédit (RNC) provenant de la prestation de services de police aux provinces, aux territoires, aux municipalités et aux communautés des Premières nations, ainsi que des ententes de partage des coûts conclues avec les provinces et les territoires pour les analyses génétiques effectuées par la GRC. De plus, la GRC a reçu une autorisation de RNC lui permettant de facturer le Service de protection parlementaire (SPP) pour les services de sécurité qu'elle assure à la cité parlementaire et sur la colline du Parlement.

Le 6 octobre 2016, la GRC a annoncé avoir conclu un accord de règlement avec les demanderesses de deux recours collectifs, Merlo et Davidson, déposés au nom d'actuelles et d'anciennes membres régulières, membres civiles et employées de la fonction publique. L'accord a été approuvé par la Cour fédérale et comprend un processus indépendant de réclamation avec indemnisation pour les femmes qui travaillent ou qui ont travaillé à la GRC et qui ont fait l'objet d'une discrimination fondée sur le sexe ou l'orientation sexuelle, ou encore d'intimidation ou de harcèlement au cours de leur emploi, du 16 septembre 1974 au 30 mai 2017. L'évaluation des réclamations a été confiée à un évaluateur indépendant nommé par la Cour fédérale. Les demanderesses ont pu présenter leurs dossiers de réclamation entre le 12 août 2017 et le 22 mai 2018. Selon les données affichées sur le site Web de l'évaluateur indépendant, 3 131 réclamations ont été déposées. À mesure que l'évaluateur indépendant évalue les réclamations, les indemnités sont versées aux demanderesses qui ont vu leur dossier accueilli, suivant les conditions prévues dans le règlement.

Ces dernières années, la GRC a connu des compressions de ses niveaux de référence par suite des exercices de réduction des dépenses à l'échelle gouvernementale, et donc d'importantes pressions financières. Afin d'évaluer les problèmes d'intégrité financière auxquels elle faisait face et de formuler des recommandations stratégiques à long terme à l'intention du ministre de la Sécurité publique et de la Protection civile, la GRC a commandé un examen exhaustif de l'affectation de ses ressources et obtenu le rapport final des examinateurs en mai 2017. Les conclusions de l'examen ont fait l'objet d'une évaluation et la GRC a présenté au gouvernement à l'automne de 2018 le rapport de l'examen ministériel auquel elle s'est prêtée. Ce rapport incluait des propositions à court, moyen et à long terme pour résoudre ces problèmes récurrents de l'affectations de ses ressources. Même si, les ministres ont appuyé en principe la voie proposée et le budget fédéral de 2019 a annoncé du financement pour renforcer les opérations policières de la GRC, la GRC continue de subir des défis pour répondre à toutes ses problèmes d'intégrité financière et aller de l'avant avec son programme de modernisation.

4. Changements importants touchant le fonctionnement, le personnel et les programmes

4.1 Fonctionnement

Par comparaison avec le deuxième trimestre de 2018 2019, la GRC a eu la conclusion des mesures de sécurité pour aider le Canada à accueillir le Sommet du G7. En raison de la nature et de l'ampleur du G7, les dépenses de la GRC pour de nombreux articles courant de dépenses ont augmenté en 2018 2019. Les dépenses liées à nombre de ces articles seront considérablement à la baisse en 2019 2020

4.2 Personnel

Subséquemment à la fin du deuxième trimestre, le premier ministre a annoncé les changements suivants au hauts gradés du département, mis en vigueur le 16 septembre, 2019 :

• M. Kevin Stringer, auparavant sous-ministre délégué au ministère des Pêches et des Océans Canada, devient dirigeant principal de l'Administration de la Gendarmerie royale du Canada.
• Mme Gail Johnson, auparavant sous-ministre adjointe à Emploi et Développement social Canada, devient dirigeante principale des Ressources humaines de la Gendarmerie royale du Canada

4.3 Programmes

Aucun changement important n'a été observé au chapitre des programmes au cours du deuxième trimestre de 2019 2020.

Approbation des cadres supérieurs

Approuvé par :

(Ottawa, Canada)

Date de la signature : 26 novembre 2019

Annexe A: État des autorisations (non-vérifié)

Annexe B: Dépenses ministérielles budgétaires par article courant (non-vérifiées)

Rapport sur les frais 2018-2019

© Sa Majesté la Reine du chef du Canada,
Représentée par le ministre de la Sécurité publique et de la Protection civile, 2019

No de catalogue PS61-37F
ISSN 2562-1653

Ce document est disponible sur le site Web du gouvernement du Canada à www.canada.ca.
Ce document est disponible en médias substituts sur demande.

Table des matières

• Message du ministre
• À propos de présent rapport
• Remises
• Montant global total par catégorie de frais
• Montant total des frais fixés au titre d'une loi, d'un règlement ou d'un avis de frais, par regroupement de frais
• Renseignements sur chaque frais fixé au titre d'une loi, d'un règlement ou d'un avis de frais
• Notes en fin de texte

Message du ministre

Au nom de la Gendarmerie royale du Canada, je suis heureux de présenter notre rapport sur les frais pour l'exercice 2018 à 2019, le deuxième rapport annuel de l'organisation en vertu de la Loi sur les frais de service.

La Loi fournit un cadre législatif moderne qui permet une prestation économique des services et, grâce à une meilleure présentation

L'année dernière, une liste détaillée des frais relevant de la compétence du Ministère, accompagnée des augmentations prévues, a été ajoutée aux exigences en matière de présentation de rapport.

Le rapport de cette année fournit plus de détails sur chaque frais, comme le type et le taux de rajustement, la norme de service et le rendement. Ces renseignements fournissent un contexte supplémentaire sur chaque frais, dans l'esprit d'une gestion des frais ouverte et transparente.

J'apprécie la transparence et la surveillance qu'imposent les exigences en matière de présentation de rapports de la Loi sur les frais de service, et j'appuie entièrement l'application continue de cette loi dans le contexte opérationnel de la GRC.

L'honorable Bill Blair, C.P., C.O.M., député
Ministre de la Sécurité publique et de la Protection civile

À propos de ce rapport

Le présent rapport, qui est déposé en vertu de l'article 20 de la Loi sur les frais de service et de la section 4.2.8 de la Directive sur l'imputation et les autorisations financières spéciales, contient de l'information sur les frais que la Gendarmerie royale du Canada (GRC) avait le pouvoir d'exiger au cours de l'exercice 2018 à 2019.

Le présent rapport contient des renseignements sur tous les frais qui relèvent de la GRC, même si certains ou la totalité des frais sont perçus par un autre ministère.

Le rapport contient des renseignements sur les frais :

• visés par la Loi sur les frais de service;
• non assujettis à la Loi sur les frais de service.

Les renseignements ont trait aux frais fixés :

• par contrat;
• en fonction de la valeur marchande, par enchères, ou les deux;
• au titre d'une loi, d'un règlement ou d'un avis de frais.

Le rapport ne fournit que le montant total pour les frais fixés :

• par contrat;
• en fonction de la valeur marchande, par enchères, ou les deux.

Pour les frais fixés au titre d'une loi, d'un règlement ou d'un avis de frais, le rapport fournit le montant total pour les regroupements de frais, ainsi que des renseignements détaillés sur chacun des frais.

Bien que les frais exigés par la GRC en vertu de la Loi sur l'accès à l'information soient assujettis à la Loi sur les frais de service, ils ne sont pas compris dans le présent rapport. Les renseignements sur les frais liés aux demandes d'accès à l'information de la GRC pour l'exercice 2018 à 2019 figurent dans notre rapport sur l'accès à l'information, qui est affiché sur: http://www.publications.gc.ca/site/fra/accueil.html.

Remises

Une remise est un retour partiel ou intégral d'un frais à un payeur de frais qui a payé pour un service pour lequel un ministère a jugé que la norme de service n'a pas été remplie.

En vertu de la Loi sur les frais de service, les ministères doivent élaborer des politiques leur permettant de déterminer si une norme de service a été satisfaite et de déterminer le montant de la remise à effectuer à un payeur de frais. Cette exigence ne prend effet que le 1 avril 2020. Le présent rapport comprend donc uniquement les remises effectuées en vertu de la loi habilitante du GRC. Il ne comprend pas les remises effectuées en vertu de la Loi sur les frais de service.

Montant total global, par catégorie de frais

Le tableau suivant présente le total des recettes, des coûts et des remises pour tous les frais que la GRC avait le pouvoir d'exiger au cours de l'exercice 2018 à 2019, par catégorie de frais.

Montant total des frais fixés au titre d'une loi, d'un règlement ou d'un avis de frais, par regroupement de frais

Le tableau suivant présente, pour chaque regroupement de frais, le total des recettes, des coûts et des remises pour tous les frais que la GRC avait le pouvoir d'exiger au cours de l'exercice 2018 à 2019 et qui sont fixés au titre de l'un ou l'autre des textes officiels suivants :

• loi;
• règlement;
• avis de frais.

Par regroupement de frais, on entend un regroupement de tous les frais qu'un ministère a le pouvoir d'exiger pour des activités liées à un seul secteur d'activité, bureau ou programme.

Renseignements sur chaque frais fixé au titre d'une loi, d'un règlement ou d'un avis de frais

Cette section fournit des renseignements détaillés sur chaque frais que la GRC avait le pouvoir d'exiger au cours de l'exercice 2018 à 2019 et qui a été fixé au titre de l'un ou l'autre des textes officiels suivants :

• loi;
• règlement;
• avis de frais.

Remarques importantes sur les droits payables pour les permis d'armes à feu

Remarque 1 : Lors du traitement d'une demande de permis d'armes à feu d'une entreprise pour diverses activités qui requièrent des autorisations, le paragraphe 9(2) du Règlement sur les droits applicables aux armes à feu établit que le client ne doit acquitter que le plus élevé des droits applicables. Dans les cas où aucun droit n'a été perçu pour un certain type de transaction relative à la délivrance de permis, les activités ont peut-être été autorisées en vertu d'un type de permis plus vaste (et plus coûteux).

Remarque 2 : Les transactions relatives à la délivrance de permis sont traitées et consignées dans le Système canadien d'information relativement aux armes à feu (SCIRAF). Le SCIRAF ne peut pas faire la distinction entre les différents types d'activités de délivrance de permis pour des droits de même valeur. Lorsqu'il y a plusieurs droits différents ayant la même valeur monétaire et qu'il n'y a aucun moyen de faire la distinction entre les types de droits, les tableaux suivants indiquent la valeur totale de tous les droits perçus par rapport à la valeur monétaire en question, et les types de transaction relative à la délivrance de permis applicables à chacun.

Remarque 3 : Il y a une différence de 360 457 $ entre les recettes totales perçues par le PCAF (Programme canadien des armes à feu) à partir de toutes les sources (27 293 020 $) et les recettes totales rapportées dans les tableaux ci dessous (26 932 562 $). Cet écart est attribuable aux recettes perçues par le truchement de transactions relatives à la délivrance de permis pour des entreprises complexes visant différentes catégories de frais et qu'il était impossible d'attribuer à une catégorie de frais en particulier, tel qu'expliqué à la remarque 2.

Fees report 2018-2019

© Her Majesty the Queen in Right of Canada,
represented by the Minister of Public Safety and Emergency Preparedness, 2019

Catalogue No. PS61-37E
ISSN 2562-1645

This document is available on the Government of Canada website at www.canada.ca.
This document is available in alternative formats upon request.

Table of contents

• Minister's message
• About this report
• Remissions
• Overall totals, by fee type
• Totals for fees set by act, regulation or fees notice, by fee grouping
• Details on each fee set by act, regulation or fees notice
• Endnotes

Minister's message

On behalf of the Royal Canadian Mounted Police, I am pleased to present our report on fees for fiscal year 2018 to 2019, the organization's second annual report under the Service Fees Act.

The act provides a modern legislative framework that enables cost-effective delivery of services and, through better reporting to Parliament, improves transparency and oversight.

Last year, a detailed listing of individual fees under the department's authority, along with anticipated increases, was added to the reporting requirements.

This year's report provides more detail on each fee, such as the type and rate of adjustment, the service standard and the performance result. This information provides additional context on each fee, in the spirit of open and transparent fee management.

I welcome the increased transparency and oversight that the Service Fees Act's reporting regime embodies, and fully support the RCMP as it continues to apply the Service Fees Act in its operational context.

The Honourable Bill Blair, P.C., C.O.M., M.P.
Minister of Public Safety and Emergency Preparedness

About this report

This report, which is tabled under section 20 of the Service Fees Act and section 4.2.8 of the Directive on Charging and Special Financial Authorities, contains information about the fees that the Royal Canadian Mounted Police (RCMP) had the authority to charge in the 2018 to 2019 fiscal year.

This report contains information about all fees that are under the RCMP's authority, even if some or all of the fees are collected by another department.

The information reported includes fees that:

• fall under the Service Fees Act
• are exempt from the Service Fees Act

The information covers fees set by:

• contract
• market-base, auction or both
• act, regulation or fees notice

For fees set by the following mechanisms, the report provides totals only:

• contract
• market-base, auction or both

For fees set by act, regulation or fees notice, the report provides totals for fee groupings, as well as detailed information for each individual fee.

Although the fees charged by the RCMP under the Access to Information Act are subject to the Service Fees Act, they are not included in this report. Information on RCMP's access to information fees for fiscal year 2018 to 2019 can be found in our access to information report, which is posted on http://www.publications.gc.ca/site/eng/home.html

Remissions

A remission is a partial or full return of a fee to a fee payer who paid for a service for which a department deemed that the service standard was not met.

Under the Service Fees Act, departments must develop policies for determining whether a service standard has been met and for determining how much of a fee will be remitted to a fee payer. This requirement does not take effect until April 1, 2020. This report therefore includes only those remissions issued under the RCMP's enabling legislation. It does not include remissions issued under the Service Fees Act.

Overall totals, by fee type

The following table presents the total revenue, cost and remissions for all fees that the RCMP had the authority to charge in fiscal year 2018 to 2019, by fee type.

Totals for fees set by act, regulation or fees notice, by fee grouping

The following tables present, for each fee grouping, the total revenue, cost and remissions for all fees that the RCMP had the authority to charge in fiscal year 2018 to 2019 that are set by any of the following:

• act
• regulation
• fees notice

A fee grouping is a grouping of all of the fees that a department has the authority to charge for activities relating to a single business line, directorate or program.

Details on each fee set by act, regulation or fees notice

This section provides detailed information on each fee that the RCMP had the authority to charge in fiscal year 2018 to 2019 and that was set by any of the following:

• act
• regulation
• fees notice

Important notes on firearms licensing fees

Note 1: When processing a firearms business licence application requiring authorizations for a variety of different activities, Section 9(2) of the Firearms Fees Regulations provides that the client is charged only the highest relevant licensing fee. In some cases, where no fees have been collected against a specific type of licensing transaction, those activities may have been licensed under a broader (and more expensive) type of licensing transaction.

Note 2: Licensing transactions are conducted and recorded via the Canadian Firearms Information System (CFIS). CFIS is not capable of distinguishing the type of licensing activity for fees that have the same dollar value. In cases where a number of different fees have the same dollar value and there is no other means of discriminating between fee types, the following tables indicate the total value of all fees collected against the dollar value in question, and the types of licensing transactions that are applicable to each.

Note 3: There is a difference of $360,457 between the total revenues received by CFP from all sources ($27,293,020) and the total revenues reported in the tables below ($26,932,562). The discrepancy is due to revenues received via complex business licensing transactions involving many different types of licensing fees that were, for reasons explained in Note 2 above, impossible to attribute to any one fee type.

Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting Royal Canadian Mounted Police Fiscal year 2018-2019

1. Introduction

This document provides summary information on the measures taken by the Royal Canadian Mounted Police (RCMP) to maintain an effective system of internal control over financial reporting, including information on internal control management, assessment results and related action plans.

Detailed information on the RCMP's authority, mandate and program activities can be found in the 2018-19 Departmental Results Report and the 2018-19 Departmental Plan.

2. RCMP's system of internal control over financial reporting

2.1 Internal control management

The RCMP recognizes the importance of setting the tone from the top and helps ensure that staff at all levels understand their role in maintaining an effective system of internal control over financial reporting (ICFR) and are well equipped to exercise these responsibilities effectively. The RCMP's focus is to ensure risks are managed through a responsive and risk-based control environment that enables continuous improvement and innovation.

The RCMP has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. The RCMP's internal control management framework, approved by the Commissioner, is in place and includes:

• Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers in their areas of responsibility for control management;
• Values and ethics;
• Ongoing communication and training on statutory requirements, and policies and procedures for sound financial management and control;
• Centralized team with support from regional internal control units within the Corporate Management portfolio dedicated to the documentation, design and operating effectiveness of ICFR under the Chief Financial and Administrative Officer authority;
• Periodic monitoring of, and regular updates to, internal control management, as well as the provision of related assessment results and action plans to the Commissioner, the Chief Financial and Administrative Officer, senior management and, as applicable, the Departmental Audit Committee.

The Departmental Audit Committee provides advice to the Commissioner on the adequacy and functioning of the RCMP's risk management, control and governance frameworks and processes.

2.2 Service arrangements relevant to financial statements

The RCMP relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows:

Common service arrangements:

• Public Services and Procurement Canada (PSPC) centrally administers the payments of salaries and benefits under two different pay systems: Phoenix for Public Service Employees and Member Pay System (MPS) for Regular and Civilian Members of the RCMP. PSPC also administers the procurement of goods and services in accordance with the RCMP's Delegation of Authority, and provides accommodation services;
• The Treasury Board of Canada Secretariat provides services related to public sector insurance for employees of the RCMP and centrally administers payment of the employer's share of contributions toward statutory employee benefit plans (i.e. the Public Service Pension Plan, Employment Insurance Plan, Canada Pension Plan, Quebec Pension Plan and Public Service Supplementary Death Benefit Plan) on behalf of the RCMP;
• The Department of Justice Canada provides legal services to the RCMP; and
• Shared Services Canada (SSC) provides information technology (IT) infrastructure services to the RCMP in the areas of data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between Shared Services Canada and the RCMP.

Readers of this Annex may refer to the Annex of the above-noted organizations for a greater understanding of the system of ICFR related to these specific services.

The RCMP relies on other departments for the processing of certain transactions or information that are recorded in its financial statements, as follows:

Specific Arrangements:

• PSPC administers the member pension administration on behalf of the RCMP. PSPC has the authority and responsibility to ensure that transactions and payments are made in accordance with the terms and conditions set out by the RCMP. As a result, reliance is placed on the control procedures of PSPC.
• Veterans Affairs Canada (VAC) administers some of the programs and services that the RCMP is responsible to provide to its members, including the disability pension and health benefit programs for a service-related injury, illness or death, pursuant to Part II of the Royal Canadian Mounted Police Superannuation Act and the Pension Act. VAC also provides transition support, case management, and access to the network of Operational Stress Injury (OSI) Clinics and VAC Assistance Service to eligible members. As a result, reliance is placed on the control procedures of VAC.

3. Departmental assessment results during fiscal year 2018-19

The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year's rotational plan.

The key findings and significant adjustments required from the current year's assessment activities are summarized below.

New or significantly amended key controls:

In the current year, there were no significantly amended key controls in existing processes that required a reassessment. Design and operating effectiveness testing on the departmental key controls for the new pay system, Phoenix, are still ongoing until PSPC's payroll processing reaches a steady state.

On-going monitoring program:

As part of its rotational ongoing monitoring plan, the RCMP completed its reassessment of IT general controls under departmental management. The reassessment of key business process controls over significant risks, tangible capital assets, pension plan liabilities, operating expenditures and accounts payable, and revenues and accounts receivable are in progress and will be completed in 2019-20. The reassessment of public service employee payroll processes is ongoing as described above. For the most part, the key controls that were tested performed as intended, with remediation required as follows:

• Control deficiencies were found in key business process controls over significant risks related to the performance of reconciliations and reviews as well as segregation of duties. A management action plan addressing the recommendations will be developed by the process owners.
• Control deficiencies were found in the IT general controls related to access to programs and data, computer operations and change management. A management action plan addressing the recommendations will be developed by the process owners.

4. Departmental action plan for the next fiscal year and subsequent years

The RCMP's rotational ongoing monitoring plan over the next four fiscal years, based on an annual validation of the high-risk processes and controls and related adjustments to the ongoing monitoring plan as required, is shown in the following table.

Annexe à la Déclaration de responsabilité de la direction englobant les contrôles internes en matière de rapports financiers de la Gendarmerie royale du Canada pour l’exercice 2018-2019

1. Présentation

Le présent document donne un résumé de l'information sur les mesures prises par la Gendarmerie royale du Canada (GRC) pour maintenir un système efficace de contrôle interne en matière de rapports financiers, y compris des renseignements sur la gestion des contrôles internes et les résultats de l'évaluation ainsi que les plans d'action connexes.

Des renseignements détaillés sur les pouvoirs, le mandat et les activités de programme de la GRC se trouvent dans le Rapport sur les résultats ministériels 2018-2019 et le Plan ministériel 2018-2019.

2. Système de contrôle interne en matière de rapports financiers de la GRC

2.1 Gestion du contrôle interne

La GRC reconnaît qu'il est important que la direction fournisse des messages clairs afin que les employés de tous les niveaux comprennent le rôle qu'ils doivent jouer dans le maintien d'un système efficace de contrôle interne en matière de rapports financiers (CIRF) et qu'ils disposent des outils nécessaires pour s'acquitter efficacement de ces responsabilités. La GRC vise avant tout à assurer une bonne gestion des risques grâce à un environnement de contrôle souple, axé sur le risque et propice à l'amélioration et à l'innovation continues.

La GRC dispose d'une structure de gouvernance et de responsabilité bien établie pour appuyer les mesures d'évaluation et la surveillance ministérielles de son système de contrôle interne. Le cadre de gestion du contrôle interne de la GRC, approuvé par le commissaire, a été mis en place et comprend les éléments suivants :

• Des structures de responsabilisation organisationnelle relativement à la gestion du contrôle interne en vue d'appuyer une saine gestion financière, y compris les rôles et les responsabilités des cadres supérieurs dans leurs secteurs de responsabilité pour la gestion du contrôle;
• Les valeurs et l'éthique;
• Des activités de communication et de formation continues concernant les exigences législatives, les politiques et les procédures visant à assurer une saine gestion financière et un contrôle efficace des finances;
• Une équipe centralisée appuyée par des groupes régionaux du contrôle interne au sein du portefeuille de la Gestion générale qui se consacrent à la documentation, à la conception et à l'efficacité opérationnelle du CIRF, sous l'autorité fonctionnelle du dirigeant principal des Finances et de l'Administration ((DPFA);
• Une surveillance périodique de la gestion du contrôle interne et des comptes rendus réguliers à cet effet, ainsi que la communication des résultats de l'évaluation connexe et des plans d'action au commissaire, au DPFA de même qu'à la haute direction, et, s'il y a lieu, au Comité ministériel de vérification (CMV).

Le CMV fournit des conseils au commissaire au sujet de la pertinence et du fonctionnement des cadres et des processus de gestion des risques, de contrôle et de gouvernance de la GRC.

2.2 Ententes de services relatives aux états financiers

La GRC compte sur d'autres organisations pour le traitement de certaines opérations consignées dans ses états financiers, notamment :

Ententes de services courantes

• Services publics et Approvisionnement Canada (SPAC) gère le paiement des salaires et des indemnités de façon centralisée, au moyen de deux systèmes de paye : Phénix pour les fonctionnaires, et le Système de paye des membres (SPM) pour les membres réguliers et les membres civils de la GRC. SPAC gère aussi l'approvisionnement en biens et services, conformément à la délégation de pouvoirs de la GRC et offre des services de gestion des locaux;
• Le Secrétariat du Conseil du Trésor du Canada fournit à la GRC des services en lien avec les assurances des fonctionnaires fédéraux et assure la gestion centralisée du paiement de la part des cotisations de l'employeur aux régimes d'avantages sociaux des employés (c.-à-d., le Régime de pension de retraite de la fonction publique, le Régime d'assurance-emploi, le Régime de pension du Canada, le Régime de rentes du Québec et le Régime de prestations supplémentaires de décès de la fonction publique) au nom de la GRC;
• Le ministère de la Justice fournit des services juridiques à la GRC;
• Services partagés Canada (SPC) fournit à la GRC des services liés à l'infrastructure de technologie de l'information (TI) dans les secteurs des centres de données et des services de réseau. L'étendue des services et les responsabilités de chacun sont décrites dans l'entente entre SPC et la GRC.

Les lecteurs de la présente annexe peuvent consulter les annexes des organisations susmentionnées pour mieux comprendre les systèmes de CIRF portant sur ces services en particulier.

La GRC confie à d'autres ministères le traitement de certaines opérations ou de certains renseignements consignés dans ses états financiers, notamment :

Ententes particulières

• SPAC assure l'administration des pensions des membres au nom de la GRC. SPAC a le pouvoir et la responsabilité de veiller à ce que les transactions et les paiements soient faits conformément aux modalités établies par la GRC. Ainsi, on s'en remet aux procédures de contrôle de SPAC.
• Anciens Combattants Canada (ACC) administre certains des programmes et des services que la GRC est responsable de fournir à ses membres, y compris le Programme de pension d'invalidité et le régime de prestations sanitaires pour une blessure, une maladie ou un décès lié au service, conformément à la Partie II de la Loi sur la pension de retraite de la Gendarmerie royale du Canada et à la Loi sur les pensions. ACC offre également du soutien à la transition, de la gestion des cas et un accès au réseau de cliniques pour traumatismes liés au stress opérationnel (TSO) et au service d'aide d'ACC aux membres admissibles. Ainsi, on s'en remet aux procédures de contrôle d'ACC.

3. Résultats de l'évaluation ministérielle au cours de l'exercice 2018-2019

Le tableau ci-dessous résume l'état des activités de surveillance continue d'après le plan cyclique de surveillance continue de l'exercice précédent.

Les principales constatations et adaptations requises d'après les activités d'évaluation de l'exercice en cours sont résumées ci-après.

Contrôles clés nouveaux ou modifiés de façon importante :

Pendant l'année en cours, aucune modification importante n'a été apportée aux contrôles clés associés aux processus existants qui exigent une réévaluation. Les évaluations de conception et d'efficacité opérationnelle des mesures importantes de contrôle pour le nouveau système de paye, Phénix, se poursuivront jusqu'à ce que les processus de la paye de SPAC atteignent un état stable.

Programme de surveillance continue :

Dans le cadre de son plan cyclique de surveillance continue, la GRC a terminé sa réévaluation des contrôles généraux de la TI gérés par la GRC. La réévaluation des contrôles clés des processus opérationnels sur les risques importants, des immobilisations corporelles, du passif du régime de pension, des dépenses d'exploitation et comptes créditeurs, et des recettes et comptes débiteurs est en cours et sera réalisée en 2019-2020. La réévaluation des processus de la paye des employés de la fonction publique est en cours, comme il est écrit plus haut. Dans la plupart des cas, les contrôles clés mis à l'essai se sont déroulés comme prévu, mais les mesures correctives suivantes s'imposent :

• On a décelé des failles en matière de contrôle dans des contrôles clés des processus opérationnels sur les risques importants en ce qui a trait à la réalisation des rapprochements et des examens, et à la séparation des tâches. Un plan d'action de la direction pour donner suite aux recommandations sera élaboré par les responsables des processus.
• On a décelé des failles en matière de contrôle dans les contrôles généraux de la TI en ce qui a trait à l'accès aux programmes et aux données, aux opérations informatiques et à la gestion du changement. Un plan d'action de la direction pour donner suite aux recommandations sera élaboré par les responsables des processus.

4. Plan d'action ministériel pour le prochain exercice et les exercices à venir

Le plan cyclique de surveillance continue de la GRC au cours des quatre prochains exercices, qui se fonde sur une validation annuelle des processus et des contrôles à risque élevé et les modifications connexes au plan de surveillance continue, s'il y a lieu, est présenté dans le tableau suivant.

Financial Statements (Unaudited) of Royal Canadian Mounted Police for the Year Ended March 31, 2019

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2019, and all information contained in these statements rests with the management of the Royal Canadian Mounted Police (RCMP). These financial statements have been prepared by management using the Government of Canada's accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the RCMP's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the RCMP's Departmental Results Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR) designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the RCMP and through conducting an annual risk-based assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level based on an ongoing process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

A risk-based assessment of the system of ICFR for the year ended March 31, 2019 was completed in accordance with the Treasury Board Policy on Financial Management and the results and action plans are summarized in the annex.

The effectiveness and adequacy of the RCMP's system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the RCMP's operations, and by the Departmental Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Commissioner.

The financial statements of the RCMP have not been audited.

Ottawa, Canada
September 3, 2019

Statement of Financial Position (Unaudited)

As at March 31, 2019

Contractual obligations and contractual rights (Note 14)

Contingent liabilities (Note 15)

The accompanying notes form an integral part of these financial statements.

Ottawa, Canada
September 3, 2019

Statement of Operations and Departmental Net Financial Position (Unaudited)

For the Year Ended March 31, 2019

Segmented information (Note 17)

The accompanying notes form an integral part of these financial statements.

Statement of Change in Departmental Net Debt (Unaudited)

For the Year Ended March 31, 2019

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows (Unaudited)

For the Year Ended March 31, 2019

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements (Unaudited)
For the Year Ended March 31, 2019

1. Authority and objectives

The Royal Canadian Mounted Police (RCMP) is Canada's national police force and an agency of the Department of Public Safety and Emergency Preparedness (PSEP).

The RCMP's mandate, as outlined in section 18 of the Royal Canadian Mounted Police Act, is multi-faceted. It includes: preventing and investigating crime; maintaining peace and order; enforcing laws; contributing to national security; ensuring the safety of state officials, visiting dignitaries and foreign missions; and providing vital operational support services to other police and law enforcement agencies within Canada and abroad. Six programs highlight our Program Alignment Architecture (PAA). These include:

Police Operations

Under the authority of the RCMP Act, this Program provides Canadians with policing services at the federal, provincial/territorial and municipal levels and within Indigenous communities. As described in the RCMP Act, these services include all duties that are assigned to peace officers in relation to: the preservation of the peace, the prevention of crime and of offences against the laws of Canada and the laws in force in any province in which they may be employed, and the apprehension of criminals and offenders and others who may be lawfully taken into custody; the execution of all warrants, and performance of all duties and services in relation thereto, that may, under the RCMP Act or the laws of Canada or the laws in force in any province, be lawfully executed and performed by peace officers; and, performing other duties and functions as are prescribed by the Governor in Council or the Commissioner. This Program contributes to a safe and secure Canada by providing general law enforcement activities, as well as education and awareness activities delivered by employees of the RCMP to the public, businesses and other agencies/organizations within Canada. The RCMP's education and awareness activities – such as information sessions on crime prevention, national security, financial crime, and drugs and organized crime – are aimed at reducing victimization of Canadians. This Program also ensures the protection of designated persons and security at major events, which in turn mitigates any potential threats to Canada's population. Finally, the Program delivers a high level of technical and operational support to the Canadian law enforcement community. Taken together, these activities ensure the RCMP reaches its overarching goal of reducing criminal activity affecting Canadians.

Internal Services

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

Canadian Law Enforcement Services

This Program provides the Canadian law enforcement community with the necessary scientific, technical, investigative and educational support to deliver proactive, intelligence-based policing and law enforcement services to their respective communities and partners. Additionally, this Program provides educational opportunities to members of the Canadian law enforcement community to enable them to develop their skills, thus increasing their effectiveness in contributing to a safer Canada.

International Policing Operations

Under authority of the RCMP Act, this Program furthers Canada's global peace and security agenda by cooperating with and supporting the international law enforcement community, thereby ensuring that both Canadians and the global community are safer. This Program addresses the transnational scope of crime by building relationships with international policing partners and by participating in the INTERPOL global information sharing network. Additionally, the RCMP actively participates in multiple missions abroad in a peacekeeping role and provides support to nations at risk to build their law enforcement capacity.

Canadian Police Culture and Heritage

In order to protect the RCMP's internationally recognized image, reputation, and rich heritage, this Program works to promote the positive image of the RCMP while building relationships with domestic and international law enforcement, government, and community partners. The Program provides advice and analysis to internal and external clients – including federal, provincial, and municipal partners, academic institutions, Royal Household representatives, and non-government organizations – regarding appropriate ceremonial features of special events and occurrences (e.g., the Olympics, Expos, Summits and at funerals for police officers). Through the activities of this Program, the RCMP contributes to Canada's vibrant culture and heritage.

Transfer Payments

This Program ensures that RCMP employees and their families are provided income security at their pension or in the event of disability or death, and that an appropriate level of support is afforded to those who are affected by circumstances beyond their control and as a result of their employment with the RCMP. The activities within this Program are regulated by either the terms and conditions of the grant or are statutory payments, such as payments under the RCMP Pension Continuation Act.

2. Summary of significant accounting policies

These financial statements are prepared using the RCMP's accounting policies stated below, which are based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Parliamentary authorities

The RCMP is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the RCMP does not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the "Expenses" and "Revenues" sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future Oriented Statement of Operations included in the 2018-2019 Departmental Plan. Planned results are not presented in the "Government funding and transfers" section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2018-2019 Departmental Plan.

b) Net cash provided by Government

The RCMP operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the RCMP is deposited to the CRF, and all cash disbursements made by the RCMP are paid from the CRF. The net cash provided by Government is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government.

c) Amounts due from or to the CRF

Amounts due from or to the CRF are the result of timing differences at year-end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the RCMP is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

Revenues from regulatory fees are recognized based on the services provided in the year.

Funds received from external parties for specified purposes are recorded upon receipt as deferred revenue. Revenues are then recognized in the period in which the related expenses are incurred.

Deferred revenue consists of amounts received in advance of the delivery of goods and rendering of services that will be recognized as revenue in a subsequent fiscal year as it is earned.

Other revenues are recognized in the period the event giving rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the RCMP's liabilities. While the Commissioner is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of the entity's gross revenues.

e) Expenses

Transfer payments are recorded as an expense in the year the transfer is authorized and all eligibility criteria have been met by the recipient.

Vacation pay and compensatory leave are accrued as the benefits are earned by employees under their respective terms of employment.

Services provided without charge by other government departments for accommodation, employer contributions to the health and dental insurance plans, legal services and workers' compensation are recorded as operating expenses at their carrying value.

f) Employee future benefits

• Pension benefits for Public Service employees: Eligible employees participate in the Public Service Pension Plan (the "Plan"), a multiemployer pension plan administered by the Government. The RCMP's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. The RCMP's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.
• Pension benefits for RCMP members: Members of the RCMP participate in a defined benefit pension plan (the "RCMP Plan") under the Royal Canadian Mounted Police Superannuation Act (RCMPSA), which is sponsored by the Government of Canada. The Minister of PSEP is the Minister responsible for the RCMPSA. The RCMP is responsible for the management of the RCMP Plan, while Public Services and Procurement Canada (PSPC) provides the day-to-day administration of the RCMP Plan. The Office of the Chief Actuary makes periodic actuarial valuations of the RCMP Plan. The RCMP Pension Accounts are the responsibility of the Government and are presented in the Consolidated Financial Statements of the Government of Canada. The RCMP's annual contributions toward the cost of current and prior service are charged to salaries and employee benefits expense in the year incurred. In addition to its regular contributions, current legislation also requires the RCMP to make contributions for actuarial deficiencies in the RCMP Plan. These contributions are expensed in the year they are credited to the RCMP Plan. This accounting treatment corresponds to the funding provided to departments through Parliamentary authorities.
• Severance benefits: The accumulation of severance benefits for voluntary departures ceased for applicable employee groups. The remaining obligation for employees who did not withdraw benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

g) Accounts receivable

Accounts receivable are stated at the lower of cost and net recoverable value; a valuation allowance is recorded for receivables where recovery is considered uncertain.

h) Non-financial assets

The costs of acquiring land, buildings, equipment and other capital property are capitalized as tangible capital assets and, except for land, are amortized to expense over the estimated useful lives of the assets, as described in Note 13. All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. Tangible capital assets do not include immovable assets located on reserves as defined in the Indian Act, works of art, museum collections and Crown land to which no acquisition cost is attributable or intangible assets.

Inventories are valued at cost and are comprised of spare parts and supplies held for future program delivery and are not primarily intended for resale. Inventories that no longer have service potential are valued at the lower of cost or net realizable value.

i) Contingent liabilities

Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, a provision is accrued and an expense recorded to other expenses. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in Note 15.

j) Contingent assets

Contingent assets are possible assets which may become actual assets when one or more future events occur or fail to occur. If the future event is likely to occur or fail to occur, the contingent asset is disclosed in Note 15.

k) Environmental liabilities

An environmental liability for the remediation of contaminated sites is recognized when all of the following criteria are satisfied: an environmental standard exists, contamination exceeds the environmental standard, the RCMP is directly responsible or accepts responsibility, it is expected that future economic benefits will be given up and a reasonable estimate of the amount can be made. The liability reflects the RCMP's best estimate of the amount required to remediate the sites to the current minimum standard for its use prior to contamination. When the future cash flows required to settle or otherwise extinguish a liability are estimable, predictable and are expected to occur over extended future periods, a present value technique is used. The discount rate used reflects the Government's cost of borrowing, associated with the estimated number of years to complete remediation.

The recorded liabilities are adjusted each year, for present value adjustments, inflation, new obligations, changes in management estimates and actual costs incurred.

If the likelihood of the RCMP's responsibility is not determinable, a contingent liability is disclosed in Note 15.

l) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported and disclosed amounts of assets, liabilities, revenues and expenses reported in the financial statements and accompanying notes as at March 31, 2019. The estimates are based on facts and circumstances, historical experience, general economic conditions and reflect the RCMP's best estimate of the related amount at the end of the reporting period. The most significant items where estimates are used are contingent liabilities, environmental liabilities, the liability for employee future benefits, allowance for vacation pay and compensatory leave, deferred revenue for Contract Policing arrangements on tangible capital assets, accrued salaries and wages at year-end, accrued revenues for Contract Policing and the useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

m) Related party transactions

Related party transactions, other than inter-entity transactions, are recorded at the exchange amount.

Inter-entity transactions are transactions between commonly controlled entities. Inter-entity transactions, other than restructuring transactions, are recorded on a gross basis and are measured at the carrying amount, except for the following:

• Services provided on a recovery basis are recognized as revenues and expenses on a gross basis and measured at the exchange amount.
• Certain services received on a without charge basis are recorded for departmental financial statement purposes at the carrying amount.
  

3. Parliamentary authorities

The RCMP receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, the RCMP has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year authorities used

b) Authorities provided and used

4. Accounts payable and accrued liabilities

The following table presents details of the RCMP's accounts payable and accrued liabilities:

5. RCMP Pension accounts

The RCMP maintains accounts to record the transactions pertaining to the Royal Canadian Mounted Police Pension Plan (the "RCMP Plan"), which comprises the RCMP Superannuation Account, the RCMP Pension Fund Account and the Retirement Compensation Arrangement Account. Details of the RCMP Plan can be found in the RCMP Pension Plan Annual Report and in the Public Accounts of Canada.

a) RCMP Superannuation Account

Until April 1, 2000, separate market-invested funds were not set aside to provide for payment of pension benefits. Instead, transactions relating to this plan were recorded in a RCMP Superannuation Account created by legislation in the Accounts of the Government of Canada.

The RCMP Superannuation Account is established in the Accounts of Canada pursuant to the RCMPSA. The RCMPSA requires that this Account record transactions such as contributions, benefits paid and transfers that pertain to pre-April 1, 2000 service, and that the Account be credited with interest. The Royal Canadian Mounted Police Superannuation Regulations require that the interest be credited quarterly at rates calculated as though the amounts recorded in the Account were invested quarterly in a notional portfolio of Government of Canada 20-year bonds held to maturity.

The balances and transactions in the Superannuation Account are not included in the RCMP's Statement of Financial Position as they are the responsibility of the Government of Canada and are presented in the Consolidated Financial Statements of the Government of Canada. They are presented here for information only.

b) RCMP Pension Fund Account

Pursuant to the RCMPSA as amended by the Public Sector Pension Investment Board Act, transactions relating to service subsequent to March 31, 2000, are recorded in the RCMP Pension Fund (the "Pension Fund"), where the excess of contributions over benefits and administration costs is invested in capital markets by the Public Sector Pension Investment Board (PSPIB). PSPIB is a separate Crown Corporation that commenced operations on April 1, 2000. The statutory objectives of PSPIB are to manage the funds transferred to it in the best interests of the contributors and beneficiaries and to maximize investment returns without undue risk of loss having regard to the funding requirements of the Pension Fund.

The net amount of contributions less benefits and other payments is regularly transferred to PSPIB for investment in capital markets. As at March 31, 2019, the balance in the RCMP Pension Fund Account represents amounts of net contributions in transit awaiting imminent transfer to PSPIB.

c) Retirement Compensation Arrangement Account

The Retirement Compensation Arrangement (RCA) account records transactions for pension benefits that are provided in excess of those permitted under the Income Tax Act. The RCA is registered with Canada Revenue Agency (CRA) and a transfer is made annually between the RCA Account and the CRA to either remit a 50% refundable tax in respect of the net contributions and interest credits or to be credited a reimbursement based on the net benefit payments. As at March 31, 2019 the total refundable tax transferred amounts to $35.0 million ($34.5 million in 2018).

The following table provides details of the RCMP Plan accounts:

6. Environmental liabilities

Remediation of contaminated sites

The Government's "Federal Approach to Contaminated Sites" sets out a framework for the management of contaminated sites using a risk-based approach. Under this approach the Government has inventoried the contaminated sites identified on federal lands, allowing them to be classified, managed and recorded in a consistent manner. This systematic approach aids in identification of the high risk sites in order to allocate limited resources to those sites which pose the highest risk to human health and the environment.

The RCMP has identified approximately 168 sites (165 sites in 2018 – reclassified) where contamination may exist and assessment, remediation and monitoring may be required. Of these, the RCMP has identified 18 sites (18 sites in 2018) where action is required and for which a gross liability of $7.6 million ($7.3 million in 2018) has been recorded. This liability estimate has been determined based on site assessments performed by environmental experts.

In addition, a statistical model based upon a projection of the number of sites that will proceed to remediation and upon which current and historical costs are applied is used to estimate the liability for a group of unassessed sites. As a result, there are approximately 134 unassessed sites (132 sites in 2018) where a liability estimate of $3.5 million ($2.5 million in 2018) has been recorded using this model.

These two estimates combined, totalling $11.1 million ($9.8 million in 2018) represents management's best estimate of the costs required to remediate sites to the current minimum standard for its use prior to contamination, based on information available at the financial statement date.

For the remaining 16 sites (15 sites in 2018), no liability for remediation has been recognized. Some of these sites are at various stages of testing and evaluation and if remediation is required, liabilities will be reported as soon as a reasonable estimate can be determined. For other sites, the RCMP does not expect to give up any future economic benefits (there is likely no significant environmental impact or human health threats). These sites will be re-examined and a liability for remediation will be recognized if future economic benefits will be given up.

The following table presents the total estimated amounts of these liabilities by nature and source, the associated expected recoveries and the total undiscounted future expenditures as at March 31, 2019 and March 31, 2018. When the liability estimate is based on a future cash requirement, the amount is adjusted for inflation using a forecast CPI rate of 2.2% (1.9% in 2018). Inflation is included in the undiscounted amount. The Government of Canada's cost of borrowing by reference to the actual zero-coupon yield curve for Government of Canada bonds has been used to discount the estimated future expenditures. The March 2019 rates range from 1.70% for 1 year term to 1.92% for a 30 or greater year term. The March 2018 rates ranged from 1.63% for 1 year term to 2.24% for a 30 or greater year term.

Also during the year 16 sites (2 sites in 2018) were closed as they were either remediated or assessed to confirm that they no longer meet all the criteria required to record a liability for contaminated sites.

The RCMP's ongoing efforts to assess contaminated sites may result in additional environmental liabilities.

7. Deferred revenue

Deferred revenue represents the balance at year-end of unearned revenues stemming from amounts received from external parties that are restricted in order to fund the expenditures related to specific programs and stemming from amounts received for fees prior to services being performed. Revenue is recognized in the period in which these expenditures are incurred or in which the service is performed.

Deferred revenue consists of three categories: deferred revenue for contract policing arrangements on tangible capital assets, deferred revenue for donations and bequests and deferred revenue for firearms licence fees.

a) Contract policing arrangements on tangible capital assets

Deferred revenue for contract policing agreements (effective April 1, 2012 to March 31, 2032) on tangible capital assets represents the net balance of revenue received in advance of the construction, purchase and maintenance of buildings and works pursuant to the contract policing arrangements accommodations program. The revenue is recognized as costs for the construction, purchase and maintenance of buildings are incurred.

b) Donations and bequests

Deferred revenue for donations and bequests represents the balance of contributions received for various specified purposes. The revenue is recognized in the period in which the related expenses are incurred.

c) Firearms licence fees

Deferred revenue for firearms licence fees represents the firearms application fees received from clients where the application processing has not reached a sufficient stage to warrant recognizing revenue. When the application reaches a stage where the eligibility of the applicant has been assessed and the firearms licence has been issued, the fees are recognized as revenue.

The following table provides details of deferred revenue: