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Sources of Respendable and Non-Respendable Revenue

This table identifies revenues by program activity received from both internal and external sources to the government. For 2012-2013, OSFI’s total revenues were $129.0 million, excluding non-respendable revenue of $0.3 million for the collection of Administrative Monetary Penalties. The respendable revenues are largely comprised of asset- or premium-based industry assessments, surcharge assessments to staged institutions, and user fees for specific services related to Regulatory Approvals.

Respendable Revenue

The table below illustrates sources of Respendable Revenue based on the appropriation basis of accounting; however, OSFI recovers its costs through assessments and user fees billed on the accrual basis of accounting. The differences between the accounting methodologies give rise to fluctuations in revenues from year to year.

As OSFI must fully recover its costs for all programs excluding Actuarial Valuation and Advisory Services, which is partially funded by a parliamentary appropriation, respendable revenues in the Main Estimates are allocated to each program, including Internal Services, to match revenues to costs and plan spending at zero on an appropriation basis. When actual revenues are billed and received, an estimate is made to allocate a portion of this revenue to Internal Services. The difference in methodologies used to plan versus record actuals accounts for some of the variances between the Main Estimates and actual revenues in each of the program activities.

 

Program 2010-11
Actual ($ millions)
2011-12
Actual ($ millions)
2012-13 ($ millions)
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Regulation and Supervision of Federally Regulated Financial Institutions
Risk Assessment and Intervention
Base Assessments 30.4 45.8 42.6 42.6 42.6 42.5
Cost-Recovered Services 0.2 0.1 0.2 0.2 0.2 1.0
User Fees and Charges 0.0 4.2 2.5 2.5 2.5 3.6
Subtotal 30.6 50.1 45.3 45.3 45.3 47.1
 Regulation and Guidance 
Base Assessments 9.5 14.1 14.3 14.3 14.3 13.0
Cost-Recovered Services 0.0 0.1 0.0 0.0 0.0 0.0
Subtotal 9.5 14.2 14.3 14.3 14.3 13.0
 Approvals and Precedents 
Base Assessments 3.9 5.3 5.3 5.3 5.3 5.2
User Fees and Charges 0.5 0.6 1.0 1.0 1.0 0.5
Subtotal 4.4 5.9 6.3 6.3 6.3 5.7
Total, Regulation and Supervision of Federally Regulated Financial Institutions 44.5 70.2 65.9 65.9 65.9 65.8
Regulation and Supervision of Federally Regulated Private Pension Plans
Pension Plan Fees 7.7 8.1 4.5 4.5 4.5 6.5
International Assistance
Cost-Recovered Services 0.5 0.0 0.0 0.0 0.0 0.0
Actuarial Valuation and Advisory Services
Services to the CPP and OAS Program
Cost-Recovered Services 1.9 2.7 1.6 1.6 1.6 2.2
Services to Public Sector Pension and Insurance Programs
Cost-Recovered Services 1.8 3.1 1.5 1.5 1.5 2.3
User Fees and Charges 0.0 0.1 0.0 0.0 0.0 0.0
Subtotal 1.8 3.2 1.5 1.5 1.5 2.3
Services to the Canada Student Loans Program (CSLP)
Cost-Recovered Services 0.5 0.8 0.5 0.5 0.5 1.1
User Fees and Charges 0.1 0.1 0.0 0.0 0.0 0.2
Subtotal 0.6 0.9 0.5 0.5 0.5 1.3
Total, Actuarial Valuation and Advisory Services 4.3 6.8 3.6 3.6 3.6 5.8
Internal Services
Base Assessments 27.9 51.3 46.5 46.5 46.5 49.9
Cost-Recovered Services 0.6 0.9 3.3 3.3 3.3 0.7
User Fees and Charges 4.6 0.1 0.0 0.0 0.0 0.2
Pension Plan Fees 0.0 0.0 2.9 2.9 2.9 0.0
Subtotal 33.1 52.3 52.7 52.7 52.7 50.8
Total Respendable Revenue 90.1 137.4 126.8 126.8 126.8 129.0

The decrease in respendable revenues in 2012-2013 from the previous year is explained in the “Summary of Performance” and “Expenditure Profile” sections of the main Departmental Performance Report.

Respendable Revenues By Type

[text version]

Total 2012-2013 respendable revenues were $129.0 million, a decrease of $8.4 million (6.1%) over the previous year’s total of $137.4 million. Base assessments of $110.6 million accounted for 85.8% of total revenue and represented a decrease of $5.9 million (5.1%) from the previous year. This decrease is attributed to the higher than usual levels of accounts receivable in 2010-2011 that were collected in the first quarter of 2011-2012.

Respendable Revenues
2008-2009 to 2012-2013

Respendable Revenues 2008-2009 to 2012-2013

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Cost recovered services revenue was $7.3 million, down $0.4 million (5.3%) from the previous year, and user fees and charges decreased $0.6 million (11.8%) to $4.5 million. The pension plan fee rate was reduced to $10 in 2012-2013, as a result of new methodology set out in the regulations and with the objective of reducing the accumulated pension fee surplus. As a result, pension plan fees decreased $1.5 million (19.0%) to $6.5 million.

Base assessments increased from 81.6% of total revenue in 2008-2009 to 85.8% in 2012-2013, while pension plan fees decreased from 8.2% to 5.1% and User fees and charges remained relatively stable. Cost recovered services decreased over the same period from 7.7% to 5.7% largely due to the termination of the Memorandum of Understanding (MOU) with the Canadian International Development Agency (CIDA) as a result of the cessation of OSFI’s International Assistance program activity in 2010-2011.

Non-Respendable Revenue

OSFI’s non-respendable revenues are entirely related to administrative monetary penalties. Effective 2002-2003, OSFI began collecting late and erroneous filing penalties from financial institutions that submit late and/or erroneous financial and corporate returns. On August 31, 2005 the Administrative Monetary Penalties (OSFI) Regulations came into force. These Regulations implement an administrative monetary penalties regime pursuant to which the Superintendent can impose penalties in respect of specific violations, as designated in the schedule to the Regulations. These Regulations incorporate the late and erroneous filing penalty regime and replace the Filing Penalties (OSFI) Regulations. These penalties are billed quarterly, collected and remitted to the Consolidated Revenue Fund. By regulation, OSFI cannot use these funds to reduce the amount that it assesses the industry in respect of its operating costs.

Program 2010-11
Actual
($ millions)
2011-12
Actual
($ millions)
2012-13 ($ millions)
Planned
Revenue
Actual
Internal Services
Administrative Monetary Penalties 0.2 0.4 0.2 0.3
Total Non-Respendable Revenue 0.2 0.4 0.2 0.3