Canadian Radio-television and Telecommunications Commission
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Statement of Management Responsibility
Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the years ended March 31, 2012 and March 31, 2013 rests with departmental management. The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information reflects the plans described in the Report on Plans and Priorities.
Management is responsible for the information contained in these future-oriented financial statements and for the appropriateness of the assumptions on which these statements are prepared. Assumptions and estimates adopted as at 28 February 2012 are based upon the best information available and known to management at the time of development.
The future-oriented financial statements for the Canadian Radio-television and Telecommunications Commission have not been audited.
(the original version was signed by)(the original version was signed by)
Gatineau, Canada
March 19, 2012
Gatineau, Canada
March 19, 2012
| ASSETS | Estimated Results 2011-2012 |
Planned Results 2012-2013 |
|---|---|---|
| Financial assets | ||
| Due from Consolidated Revenue Fund | 3,603,300 | 3,715,762 |
| Accounts receivable and advances (Note 6) | 232,294 | 242,263 |
| Total financial assets | 3,835,594 | 3,958,025 |
| Non-financial assets | ||
| Prepaid expenses | 205,363 | 187,104 |
| Tangible capital assets (Note 7) | 3,860,176 | 3,780,845 |
| Total non-financial assets | 4,065,539 | 3,967,949 |
| Total Assets | 7,901,133 | 7,925,974 |
| LIABILITIES AND EQUITY OF CANADA | ||
| Liabilities | ||
| Accounts payable and accrued liabilities (Note 8) | 3,606,400 | 3,718,862 |
| Vacation pay and compensatory leave | 1,841,036 | 1,799,377 |
| Accrued employee severance benefits (Note 9(b)) | 5,705,997 | 3,797,156 |
| Total Liabilities | 11,153,433 | 9,315,395 |
| Equity of Canada | (3,252,300) | (1,389,421) |
| Total Liabilities and Equity of Canada | 7,901,133 | 7,925,974 |
Information for the year ended March 31, 2012 includes actuals amounts from April 1st 2011 to January 31, 2012.
The accompanying notes form an integral part of these future-oriented financial statements.
| Estimated Results 2011-2012 Total |
Canadian Broadcasting (Note 1) |
Canadian Telecommu-nications (Note 1) |
Internal services (Note 1) |
Planned Results 2012-2013 Total |
|
|---|---|---|---|---|---|
| Revenues | |||||
| Rights and privileges (Note 4(d) and Note 11) | 101,800,012 | 104,752,212 | - | - | 104,752,212 |
| Regulatory fees (Note 4(d)) | 59,106,475 | 23,318,528 | 20,351,174 | 14,608,000 | 58,277,702 |
| Other revenues (Note 11) | 402,488 | 12,000 | 113,294 | - | 125,294 |
| Total revenues | 161,308,975 | 128,082,740 | 20,464,468 | 14,608,000 | 163,155,208 |
| Expenses | |||||
| Salaries and employee benefits | 48,341,637 | 14,930,859 | 15,326,779 | 16,672,979 | 46,930,617 |
| Professional and special services | 4,727,491 | 1,897,151 | 1,841,004 | 1,353,295 | 5,091,450 |
| Accommodation | 3,090,583 | 1,167,983 | 1,259,179 | 663,421 | 3,090,583 |
| Travel and relocation | 2,539,809 | 811,144 | 787,139 | 578,613 | 2,176,896 |
| Repair and maintenance | 1,236,371 | 523,379 | 507,889 | 373,341 | 1,404,609 |
| Amortization | 1,430,853 | 668,665 | 668,665 | - | 1,337,330 |
| Information, advertising and communications services | 1,261,868 | 451,332 | 437,976 | 321,949 | 1,211,257 |
| Furniture and equipment | 1,844,036 | 307,844 | 298,733 | 219,595 | 826,172 |
| Materials and supplies | 454,047 | 134,581 | 130,598 | 96,001 | 361,180 |
| Rentals | 350,989 | 129,625 | 125,790 | 92,465 | 347,880 |
| Bad debt | 12,572 | 75,000 | 75,000 | ||
| Other | 751 | 1,071 | 1,039 | 763 | 2,873 |
| Total expenses | 65,291,007 | 21,023,634 | 21,459,791 | 20,372,422 | 62,855,847 |
| Net revenue from operations | 96,017,968 | 107,059,106 | (995,323) | (5,764,422) | 100,299,361 |
Information for the year ended March 31, 2012 includes actuals amounts from April 1st 2011 to January 31, 2012.
The accompanying notes form an integral part of these future-oriented financial statements.
| Estimated Results 2011-2012 |
Planned Results 2012-2013 |
|
|---|---|---|
| Equity of Canada, beginning of year | (4,877,720) | (3,252,300) |
| Net revenue from operations | 96,017,968 | 100,299,361 |
| Net cash provided to Government | (100,662,109) | (104,771,514) |
| Change in Due from the Consolidated Revenue Fund | (102,310) | 112,462 |
| Services received without charge from other government | ||
| departments (Note 10(a)) | 6,371,871 | 6,222,570 |
| Equity of Canada, end of year | (3,252,300) | (1,389,421) |
Information for the year ended March 31, 2012 includes actuals amounts from April 1st 2011 to January 31, 2012.
The accompanying notes form an integral part of these future-oriented financial statements.
| Estimated Results 2011-2012 |
Planned Results 2012-2013 |
|
|---|---|---|
| Operating activities | ||
| Net revenue from operations | (96,017,968) | (100,299,361) |
| Non-cash items: | ||
| Services provided without charge by other government departments (Note 10(a)) |
(6,371,871) | (6,222,570) |
| Amortization of tangible capital assets (Note 7) | (1,430,853) | (1,337,331) |
| Variation in Future-oriented Statement of Financial Position: | ||
| Increase (decrease) in accounts receivable and advances | 44,610 | 9,969 |
| Increase (decrease) in prepaid expenses | 36,517 | (18,259) |
| Decrease (increase) in liabilities | 1,941,926 | 1,838,038 |
| Cash provided by operating activities | (101,797,639) | (106,029,514) |
| Capital investing activities: | ||
| Acquisition of tangible capital assets (Note 7) | 1,135,530 | 1,258,000 |
| Cash used in capital investing activities | 1,135,530 | 1,258,000 |
| Net cash provided to Government of Canada | (100,662,109) | (104,771,514) |
Information for the year ended March 31, 2012 includes actuals amounts from April 1st 2011 to January 31, 2012.
The accompanying notes form an integral part of these future-oriented financial statements.
Notes to Future-oriented Financial Statements
1. Authority and Objectives
The Canadian Radio-television and Telecommunications Commission (CRTC) was created by Parliament in 1968 under the Canadian Radio-television and Telecommunications Commission Act. The CRTC reports to Parliament through the Minister of Canadian Heritage.
The CRTC is vested with the authority to regulate and supervise all aspects of the Canadian broadcasting system, as well as the telecommunications services providers and common carriers that come under federal jurisdiction. The CRTC’s powers in the area of broadcasting regulation derive from the Broadcasting Act. Its powers over telecommunications come from the Telecommunications Act and from various “special acts” of Parliament passed for specific telecommunications companies.
In December 2010, Royal Assent was granted for Anti-spam legislation entitled An Act to promote the efficiency and adaptability of the Canadian economy by regulating certain activities that discourage reliance on electronic means of carrying out commercial activities, and to amend the Canadian Radio-television and Telecommunications Commission Act, the Competition Act, the Personal Information Protection and Electronic Documents Act and the Telecommunications Act (hereinafter referred to as Anti-spam legislation).Under this legislation, the CRTC has obtained new investigative and enforcement responsibilities and powers to counter spam and malware. The legislation may come into force in 2012.
The following are the program activity descriptions for the CRTC:
Canadian Broadcasting
The Broadcasting Act requires that the CRTC regulate and monitor broadcasters and broadcasting services, including radio, television, cable distribution and direct-to-home satellite systems, through the issuance of licenses. This program is important in order to ensure the predominance of Canadian content and by providing Canadians with full access to the broadcasting system, as participants in the industry and as audiences.
Canadian Telecommunications
The Telecommunications Act requires that the CRTC regulate and supervise the telecommunications industry by approving tariffs and fostering competition. The CRTC’s regulation of the telecommunications industry is based on an increased reliance on market forces and, where required, effective and efficient regulation. As a result of the CRTC’s regulation of the telecommunications industry, Canadians have access to reliable telephone and other high-quality telecommunications services at affordable prices. The CRTC’s activities related to the Anti-spam legislation will seek to reduce the volume of unwanted commercial electronic messages and harmful computer programs that Canadians receive, thereby ensuring access to more reliable telecommunications services and increasing confidence in electronic commerce.
Internal Services
Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups 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; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.
2. Methodology and significant assumptions
These future-oriented statements have been prepared on the basis of the government priorities and the plans of the department as described in the Report on Plans and Priorities.
The main assumptions are as follows:
- The department’s operating activities will remain substantially the same as for the previous year except for activities related to the Do Not Call List (DNCL). Since a source of funding for the DNCL for 2012-13 and beyond was uncertain at time of preparation of these future-oriented financial statements, anticipated expenses have been excluded. Furthermore, it is not possible to accurately forecast revenues related to administrative monetary penalties (AMPs). Amounts may vary significantly from year to year based on the level of compliance by telemarketers as well as the number of investigations conducted and completed by CRTC’s DNCL staff.
- Expenses and revenues, including the determination of amounts internal and external to the government, are based on historical experience. The general historical pattern is expected to continue.
- Allowances for uncollectibility are based on historical experience. The general historical pattern is expected to continue.
- Estimated year end information for 2011-12 is used as the opening position for the 2012-13 planned results.
The assumptions are adopted as at February 28th, 2012.
3. Variations and Changes to the Forecast Financial Information
While every attempt has been made to accurately forecast final results for the remainder of 2011-12 and for 2012-13, actual results achieved for both years are likely to vary from the forecast information presented, and this variation could be material.
In preparing these future-oriented financial statements the CRTC has made estimates and assumptions concerning the future. These estimates and judgements may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Factors that could lead to material differences between the future-oriented financial statements and the historical financial statements include:
- Implementation of new collective agreements.
- The timing and amounts of acquisitions and disposals of property, plant and equipment may affect gains/losses and amortization expense.
- Further changes to the operating budget through additional new initiatives or technical adjustments later in the year (e.g. potential funding for DNCL related activities or announcements in Budget 2012).
Once the Report on Plans and Priorities is presented, the CRTC will not be updating the forecasts for any changes to authorities or forecast financial information made in ensuing estimates. Variances will be explained in the Departmental Performance Report.
4. Summary of significant accounting policies
The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles.
Significant accounting policies are as follows:
- Parliamentary authorities and vote-netting The CRTC is financed in part by the Government of Canada through Parliamentary authorities (e.g. Statutory Vote for Employee Benefits Plans (EBP), Budgetary Vote for the Anti-spam legislation activities) and the balance by vote-netted fees it collects from the regulated industries. Vote-netting is a means of funding selected programs or activities wherein Parliament authorizes a department to apply revenues collected from fee payers towards costs directly incurred for specific activities. CRTC has the authority to use a portion of the Part I licence fees collected from broadcasters and a portion of the annual telecommunications fees collected from telecommunications carriers to finance the costs it incurs in regulating the broadcasting and telecommunications industries (i.e. respendable revenue). The balance of these two fees recovers the costs for items funded through authorities (e.g. EBP) and costs incurred by other government departments on the CRTC’s behalf and are classified as non-respendable revenue. Part II broadcasting licence fees are entirely classified as non-respendable revenue.
The cash accounting basis is used to recognize transactions affecting parliamentary authorities. The future-oriented financial statements are based on accrual accounting. Consequently, items recognized in the Future-oriented Statement of Operations and the Future-oriented Statement of Financial Position are not necessarily the same as those provided through fee collection and through authorities from Parliament. - Net cash provided to Government The CRTC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the CRTC is deposited to the CRF and all cash disbursements made by the CRTC are paid from the CRF. The net cash provided to Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.
- Amounts due from/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 CRTC is entitled to draw from the CRF without further parliamentary expenditure authorities to discharge its liabilities.
- Revenues The CRTC collects fees under the authority of the Broadcasting Act and Telecommunications Act and the regulations made pursuant to these Acts, namely the Broadcasting Licence Fee Regulations, 1997 and the Telecommunications Fee Regulations, 2010. These fees are accounted for in the period in which the underlying transaction or event occurs that give rise to the revenues. The CRTC’s regulatory fees (Part I broadcasting licence fees and annual telecommunications fees) recover the CRTC’s costs associated with its broadcasting, telecommunications, and internal services activities. The Part II licence fees are regulatory charges imposed in relation to a broadcaster’s privilege (i.e. rights and privileges). These fees recover part of the Government of Canada’s substantial annual investment in the Canadian broadcasting system.
- Expenses Expenses are recorded on an accrual basis:
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, the employer’s contribution to the health and dental insurance plans, and worker’s compensation are recorded as operating expenses at their estimated cost. - Employee future benefits
- Pension benefits Eligible employees participate in the Public Service Pension Plan, a multi-employer plan administered by the Government of Canada. The CRTC’s contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the CRTC to make contributions for any actuarial deficiencies of the Plan.
- Severance benefits Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
- Accounts receivables are stated at the lower of costs and net recoverable value; a valuation allowance is established for receivables where recovery is considered uncertain.
- Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded at their acquisition cost. The CRTC does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.
Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:
Asset Class Amortization period Informatics equipment 3 years Informatics software 5 years Vehicles 5 years Equipment 5 years Leasehold improvements 25 years
- Measurement uncertainty The preparation of these future-oriented financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in the future-oriented financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Actual results could significantly differ from those estimated.
5. Parliamentary Authorities
The CRTC receives the major portion of its funding through fees assessed against the regulated industries, i.e. Broadcasting and Telecommunications, as well as a portion from Parliamentary authorities. Since Parliamentary authorities are not calculated on the accrual accounting basis, the CRTC 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) Authorities requested
| Estimated 2011-12 |
Planned 2012-13 |
|
|---|---|---|
| Vote 50 - Operating expenditures | 12,521,980 | 9,141,000 |
| Statutory amounts | 6,925,304 | 6,311,029 |
| Less: | ||
| Forecast authorities available for future years | -1,728,976 | - |
| Current year forecast authorities available | 17,718,308 | 15,452,029 |
Authorities presented reflect current forecasts of statutory items, approved initiatives included and expected to be included in Estimates documents and, when reasonable estimates can be made, estimates of amounts to be allocated from Treasury Board central votes.
(b) Reconciliation of net revenue of operations to requested authorities:
| Estimated 2011-12 |
Planned 2012-13 |
|
|---|---|---|
| Net revenue from operations | -96,017,968 | -100,299,361 |
| Adjustments for items affecting net revenue of operations but not affecting authorities: | ||
| Decrease in employee future benefits | 1,922,669 | 1,908,841 |
| Services provided without charge by other government departments | -6,371,871 | -6,222,570 |
| Amortization of tangible capital assets | -1,430,853 | -1,337,331 |
| Increase in bad debt expenses | -12,572 | -75,000 |
| Refund of prior years’ expenditures and adjustments to payables at year end | 20,655 | - |
| Revenue not available for spending | 118,519,520 | 120,196,050 |
| Decrease (increase) in vacation pay and compensatory leave | -83,319 | 41,659 |
| Sub-total | 112,564,229 | 114,511,649 |
| Adjustments for items not affecting net revenue of operations but affecting authorities: | ||
| Acquisitions of tangible capital assets | 1,135,530 | 1,258,000 |
| Increase (decrease) in prepaid expenses | 36,517 | -18,259 |
| Sub-total | 1,172,047 | 1,239,741 |
| Forecast authorities available | 17,718,308 | 15,452,029 |
6 Accounts Receivable and Advances
The following table presents details of the CRTC’s accounts receivable and advances balances:
| Estimated Results 2011-12 |
Planned Results 2012-13 |
|
|---|---|---|
| Receivables from other government departments and agencies | 81,189 | 62,456 |
| Receivables from external parties | 261,574 | 365,276 |
| Other | 3,100 | 3,100 |
| 345,863 | 430,832 | |
| Allowance for doubtful accounts on receivables from external parties | -113,569 | -188,569 |
| Total | 232,294 | 242,263 |
7 Tangible Capital Assets (in dollars)
| Cost | Accumulated amortization | Net book value | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Capital asset class | Opening balance | Acquisi-tions | Disposals and write-offs | Closing balance | Opening balance | Amorti-zation | Disposals and write-offs | Closing balance | 2012 | 2013 |
| Equipment | 232,147 | - | - | 232,147 | 219,239 | 10,552 | - | 229,791 | 12,908 | 2,356 |
| Vehicles | 54,451 | - | - | 54,451 | 35,910 | 5,451 | - | 41,361 | 18,541 | 13,090 |
| Informatics Equipment | 2,888,987 | 440,300 | - | 3,329,287 | 2,143,570 | 306,469 | - | 2,450,039 | 745,417 | 879,248 |
| Informatics Software | 7,419,450 | 817,700 | - | 8,237,150 | 4,529,147 | 1,006,108 | - | 5,535,255 | 2,890,303 | 2,701,895 |
| Leasehold Improvements | 218,760 | - | - | 218,760 | 25,753 | 8,751 | - | 34,504 | 193,007 | 184,256 |
| Total | 10,813,795 | 1,258,000 | 0 | 12,071,795 | 6,953,619 | 1,337,331 | 0 | 8,290,950 | 3,860,176 | 3,780,845 |
8 Accounts Payable and Accrued Liabilities
The following table presents details of the CRTC’s accounts payable and accrued liabilities:
| Estimated Results 2011-12 |
Planned Results 2012-13 |
|
|---|---|---|
| Accounts payable to other government departments and agencies | 856,407 | 724,123 |
| Accounts payable to external parties | 1,601,712 | 1,852,889 |
| Accrued liabilities: | ||
| Salaries | 1,054,920 | 1,064,353 |
| Operating and Maintenance | 93,361 | 77,497 |
| Total accounts payable and accrued liabilities | 3,606,400 | 3,718,862 |
9. Employee Benefits
(a) Pension benefits:
The CRTC's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation.
Both the employees and the CRTC contribute to the cost of the Plan. The forecast expenses are $5.0 million in 2011-12 and 4.6 million in 2012-13, representing approximately 1.9 times the contributions of employees.
The CRTC'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.
(b) Severance benefits:
The CRTC provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, estimated as at the date of these statements, is as follows:
| Estimated Results 2011-12 |
Planned Results 2012-13 |
|
|---|---|---|
| Accrued benefit obligation, beginning of year | 7,628,666 | 5,705,997 |
| Expense for the year | 994,259 | 619,818 |
| Expected benefits payments during the year | -2,916,928 | -2,528,659 |
| Accrued benefit obligation, end of year | 5,705,997 | 3,797,156 |
10. Related Party Transactions
The CRTC is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. CRTC enters into transactions with these entities in the normal course of business and on normal trade terms. During the year, the CRTC received common services which were obtained without charge from other Government departments as disclosed below.
(a) Common services provided without charge by other government departments
During the year, the CRTC receives services without charge from certain common service organizations, related to accommodation, the employer's contribution to the health and dental insurance plans and worker’s compensation coverage. These services provided without charge have been recorded in the department's Future-oriented Statement of Operations as follows:
| Estimated Results 2011-12 |
Planned Results 2012-13 |
|
|---|---|---|
| Accommodation expenses | 3,090,583 | 3,090,583 |
| Health & Dental expenses | 3,126,153 | 3,047,940 |
| Worker's Compensation expenses | 155,135 | 84,047 |
| Total | 6,371,871 | 6,222,570 |
Other services provided without charge to the CRTC as noted above are a component of the Part I broadcasting licence fee and the annual telecommunications fee collected by the CRTC.
The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as payroll and cheque issuance services provided by Public Works and Government Services Canada and audit services provided by the Office of the Auditor General of Canada, are not included in the CRTC's Future-oriented Statement of Operations, nor are they recovered as a component of the CRTC Part I broadcasting licence fee or annual telecommunications fee.
(b) Other transactions with related parties:
| Estimated Results 2011-12 |
Planned Results 2012-13 |
|
|---|---|---|
| Accounts receivable with other government departments and agencies | 81,189 | 62,456 |
| Accounts payable to other government departments and agencies | 856,407 | 724,123 |
| Expenses - Other Government departments and agencies | 2,072,746 | 2,079,102 |
11. Revenues
(a) Rights & Privileges
Part II licence fees The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 (Broadcasting Regulatory Policy CRTC 2010-476). A cap of $100 million was introduced for the calculation of Part II broadcasting licence fees and this cap will be adjusted annually on a compound basis in accordance with the percentage increase or decrease to the Consumer Price Index (CPI) for the calendar year prior to the year of the adjustment. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada.
These fees recover part of the Government of Canada’s substantial annual investment in the Canadian broadcasting system.
(b) Regulatory Fees
The CRTC collects fees under the authority of regulations in the Broadcasting Act and Telecommunications Act.
Broadcasting licence fees Section 11 of the Broadcasting Act gives the Commission the authority to make regulations respecting licence fees. These regulations apply to most licensees, who are required to pay their Part I and Part II licence fees to the Commission annually. The last amendment to the Broadcasting Licence Fee Regulations was done in 2010. Details on the amendment can be found in Broadcasting Regulatory Policy CRTC 2010-476 on the CRTC website at http://www.crtc.gc.ca/eng/archive/2010/2010-476.htm. The Broadcasting Licence Fee Regulations can be found on the Department of Justice web site at: http://laws.justice.gc.ca/.
Part I licence fees Part I licence fees are based on the broadcasting regulatory costs incurred each year by the Commission and other federal departments or agencies, and are equal to the aggregate of:
- the costs of the Commission’s broadcasting activities;
- the share of the costs of the Commission’s administrative activities that is attributable to its broadcasting activities; and
- other costs included in the net cost of the Commission’s program attributable to its broadcasting activities, excluding the costs of regulating the broadcasting spectrum.
The CRTC’s estimated broadcasting regulatory costs are set out in its Expenditure Plan published in Part III of the Estimates of the Government of Canada (Report on Plans and Priorities).
There is an annual adjustment (‘true-up’) amount to the Part I fee to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the licensee in a following year’s invoice.
Telecommunications fees Section 68 of the Telecommunications Act grants the CRTC authority to create the Telecommunications Fees Regulations.
The Telecommunications FeesRegulations amended in March 2010 (Telecom Decision CRTC 2010‑183 dated 25 March 2010) requires all telecommunications service providers (TSPs), or groups of related TSPs, with at least $10 million dollars in Canadian telecommunications service revenues (CTSR) to pay telecommunications fees, whether or not they file a tariff for approval with the Commission. The Telecommunications Fees Regulations can be found on the Department of Justice web site at: http://laws.justice.gc.ca/.
The CRTC’s annual telecommunications fees are equal to the aggregate of:
- the cost of the Commission’s telecommunications activities;
- the share of the costs of the administrative activities that are attributable to the Commission’s telecommunications activities; and
- other costs attributable to the Commission’s telecommunications activities.
The CRTC’s estimated telecommunications regulatory costs are set out in its Expenditure Plan, published in Part III of the Estimates of the Government of Canada (Report on Plans and Priorities).
There is an annual adjustment (‘true-up’) amount to the telecommunications fees to adjust estimated costs to actual expenditures. Any excess fees or shortfalls are credited or charged to the carriers in the following year’s invoice.
(c) Other Revenues
Other revenues is comprised of: (a) interest on overdue accounts receivable for CRTC broadcasting licence fees, telecommunications fees and administrative monetary penalties (AMPs), (b) Do Not Call List (DNCL) AMPS, (c) miscellaneous non tax revenue (e.g. access to information (ATI) fees), and (d) gain on disposal of non-capital assets to outside parties.
