Departmental Performance Report 2013-2014 - Supplementary Information Tables

Table of Contents

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue (note 1)
($ millions)

Activity 2011-12
Actual
2012-13
Actual
2013-14
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Canadian Broadcasting
Broadcasting Licence Fees Part I 23.1 22.3 23.7 23.7 23.7 23.7
Canadian Telecommunications
Telecommunications Fees 19.9 19.4 20.2 20.2 20.2 20.2
Unsolicited Telecommunications Fees 2.6 2.6 2.6 2.6
Total Respendable Revenue (note 1) 43.0 41.7 46.5 46.5 46.5 46.5

Non-Respendable Revenue (note 2)
($ millions)

Activity 2011-12
Actual
2012-13
Actual
2013-14
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Canadian Broadcasting
Broadcasting Licence Fees Part I 8.8 6.9 3.1 6.8 5.3 6.8
Deferred Revenue Part I (3.7)
Broadcasting Licence Fees Part II   101.8 104.8 - 106.3 106.3   106.3
Canadian Telecommunications
Telecommunications Fees 7.3 6.9  2.9 6.2 3.8    6.0
Unsolicited Telecommunications Fees 0.4 0.7 0.4 0.5
Other Revenues  (note 3) 1.9 4.0 0.2 - 1.0
Total Non-Respendable Revenue 119.8 122.6 6.4 120.2 115.8 116.5

Total of Respendable and Non-Respendable Revenue
($ millions)

Activity 2011-12
Actual
2012-13
Actual
2013-14
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Total Revenue (note 4) 162.8 164.3 52.9 166.7 162.3 163.0

Note 1: The CRTC retains respendable (vote netted) revenue to fund its operating budget.  This revenue is comprised of a part of the annual Broadcasting Licence Fees Part I, Telecommunications Fees and Unsolicited Telecommunications Fees (starting in 2013-14).

Note 2: Non-Respendable Revenue for the CRTC is attributed to four main factors that are described below:

  1. Statutory Costs and Costs of Services provided by other government departments on behalf of the CRTC - Part I Broadcasting Licence Fees, CRTC Telecommunications Fees, and Unsolicited Telecommunications Fees recover the costs incurred by other federal government departments for most services rendered without charge to the CRTC (e.g. PWGSC accommodation costs) and the statutory costs of employee benefit plans.
  2. Annual Adjustment (True-up) of Part I Broadcasting Licence Fees and annual Telecommunications Fees - The Commission's broadcasting and telecommunications fees regulations have a provision whereby the Commission is able to adjust the annual fees (Part I Broadcasting Licence Fees and Telecommunications Fees) to take into account the Commission's actual expenditures on both Broadcasting and Telecommunications activities during the fiscal year. The adjustments represent the difference between the estimated costs initially billed in a previous fiscal year and the actual costs incurred and are accounted for as non-respendable revenue.
  3. Part II Broadcasting Licence Fees - The Broadcasting Licence Fee Regulations, 1997 were amended in 2010 for the Part II Licence Fees (Broadcasting Regulatory Policy CRTC 2010-476 dated 14 July 2010). A cap of $100 million was introduced for the calculation of Part II Licence Fees and this cap is 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 adjustments. The CPI is the annual average all-items CPI for Canada that is published by Statistics Canada. The planned revenue figure for Part II Licence Fees is adjusted and communicated to stakeholders once the CPI information is available. The CPI index was 1.8% for fiscal year 2011-12, 2.9% for fiscal year 2012-13 and 1.5% for 2013-14.

    Part II Broadcasting Licence Fees are non-respendable revenue as these fees recover part of the Government of Canada's substantial annual investment in the Canadian broadcasting system.

Note 3: Other revenues are comprised of administrative monetary penalties ($1M).

Note 4: All revenues are credited to the Consolidated Revenue Fund.

Note 5: Summary of CRTC Fees:

Part I Broadcasting Fees 2011-12 $ 31.9M Broadcasting Order CRTC 2011-147
2012-13 $ 30.6M Broadcasting Order CRTC 2012-130
2013-14 $ 30.5M Broadcasting Order CRTC 2013-61
Part II Broadcasting Fees 2011-12 $101.8M Broadcasting Order CRTC 2011-658
2012-13 $104.8M Broadcasting Order CRTC 2012-573
2013-14 $106.3M Broadcasting Order CRTC 2013-571
Telecommunications Fees 2011-12 $ 27.2M Telecom Order CRTC 2011-361
2012-13 $ 26.3M Telecom Order CRTC 2012-324
2013-14 $ 25.9M Telecom Order CRTC 2013-280
Unsolicited Telecommunications Fees 2011-12 $ -  
2012-13 $ -  
2013-14 $ 3.1M Compliance and Enforcement Order CRTC 2014-307

User Fees Reporting

The only fee that the CRTC currently collects which is subject to the reporting requirements of the User Fees Act relates to the processing of access requests filed under the Access to Information Act.

  1. User Fee: Access to Information Fees
  2. Fee Type: Other Products and Services (O)
  3. Fee-Setting Authority: Access to Information Act
  4. Date Last Modified: 1992
  5. Performance Standards: Requests are completed as per the standards indicated in the Access to Information Act.  Section 7 of the Act states that access to a record requested under this Act shall, subject to sections 8, 9 and 11 be made available within thirty (30) days after the request is received.
  6. Performance Results: During FY 2013-14, 96 new requests were received and 6 requests were carried over from FY 2012-2013 for a total of 102 requests. Of this total, 85 requests were completed and processed in the following time frames: 40 completed within 30 days; 8 within 31 to 60 days; 34 within 61 to 120 days; 3 within 121 to 365 days and 17 requests are still pending at the end of FY 2013-14.
2013-14
($000)
Planning Years
($000)
Forecasted Revenue Actual Revenue Full Cost Fiscal Year Forecast Revenue Estimated Full Cost
1 1.2 195 2014-15 1 280
2015-16 1 280
2016-17 1 280

External Fees (Policy on Service Standard for External Fees)

CRTC assesses fees pursuant to the Broadcasting Licence Fee Regulations, 1997, the Telecommunications Fees Regulations, 2010, and the Unsolicited Telecommunications Fees Regulations. These regulations can be located on the Department of Justice web site. These fees are considered to be external “regulatory fees” and not “user fees” as defined in the User Fees Act.  Thus these fees, and the external reporting of any information related to these fees, are not subject to the provisions of the User Fees Act (UFA), but rather the Treasury Board Policy on Service Standards for External Fees.

In order to be as comprehensive and transparent as possible with respect to CRTC external fees, information is being presented in the following table.

CRTC External Fees

Name of Fee Fee Type Fee Setting Authority Performance Standards Performance Results Stake-holder consultation  2012-13 or prior

Broadcasting
Licence Fees

Part I

Regulatory (R)

Broadcasting Act
(Section 11)

Broadcasting Licence Fee Regulations 1997

  The broadcasting service standards performance can be found on our website. Broadcasting Regulatory Policy CRTC 2010-476/ 2010
Part I Broadcasting applications: decision to be issued within 4 months of close of records (CoR) 151 applications received,  86% of decisions issued within 4 months of CoR
Broadcasting applications considered at Public Hearing: decision to be issued within 4 months of CoR 139 applications received,  91% of decisions issued within 4 months of CoR
Broadcasting applications – administrative route: decision to be rendered within 1 month of date of receipt 56 applications received, 96% of decisions rendered  within 1 month of date of receipt

Ownership-related applications: decision to be rendered within the timeframes set out below:

  1. Hearing route within 35 days of CoR
  2. Notice of consultation route: within 2 months of CoR
  3. Administrative route: within 2 months after the date of receipt
  1. 34 applications received, 68% of decisions rendered within timeframes
  2. 2 application received; 100% of decisions rendered within timeframes
  3. 8 applications received, 50% of decisions rendered within 2 months

Broadcasting
Licence Fees

Part II

Right & Privilege/ Regulatory Charges

Broadcasting Act
(Section 11)

Broadcasting Licence Fee Regulations 1997

Not applicable

Not applicable

Broadcasting Regulatory Policy CRTC 2010-476/ 2010

Telecommunications Fees

Regulatory (R)

Telecommuni-cations Act (Section 68)

Telecommu-nications Fees Regulations 2010

  The telecommunications service standards performance can be found on our website

Telecom Decision CRTC
2010-183 /2010

Part I Applications: decision to be issued within 4 months of the CoR 51 applications received, 94% of decisions issued within 4 month of CoR
Part 1 Applications – Local Forbearance: decision to be issued within 120 days of receiving complete application 5 applications received, 100% decisions issued within 120 days

Tariff Applications and Intercarrier Agreements

Services standards set as follows:

  1. 85% of determinations made on  an interim or final basis within 2 month of receipt of complete application
  2.  95% of determinations to be made on an  interim or final basis within 4 months of receipt of complete application
  1. 518 applications received, 94% completed  within 2 months
  2. 518 applications received, 96% completed within 4 months
Destandardization and / or Withdrawal Applications: to issue 95% of determinations on a final basis within 12 months 9 applications received, 100% completed within 12 months
Regulatory (R)

Telecommunications Act 41.21(1)

Unsolicited Telecommunications Fees Regulations

Not applicable

Not applicable

Other (O) Administrative monetary penalty AMPs and interest) Not applicable Not applicable

Explanation of Revenue

The CRTC collects fees under the authority of regulations in the Broadcasting Act and Telecommunications Act. For the fiscal year 2013-2014:

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. The Broadcasting Licence Fee Regulations can be found on the Department of Justice website.

Part I Licence Fees

For 2013–2014, the CRTC assessed $30.5 million in Part I fees, including "true-up" and adjustments (Broadcasting Order CRTC 2013-61)

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 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 (Part III 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.

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 licence fees and this cap is 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 adjustments. 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.

For 2013–2014, the CRTC assessed $106.3 million in Part II licence fees (Broadcasting Order CRTC 2013-571) .

Telecommunications Fees

Section 68 of the Telecommunications Act grants the CRTC authority to create the Telecommunications Fees Regulations.

The Telecommunications Fees Regulations, 2010, made in March 2010 (Telecom Decision CRTC 2010-183 dated 25 March 2010) require 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.

For 2013–2014, the CRTC assessed $27.2 million in telecommunications fees, including "true-up" and adjustments Telecom Order CRTC 2013-280).

The CRTC's annual telecommunications fees are equal to the aggregate of:

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 (Part III - 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.

Unsolicited Telecommunications Fees

Unsolicited Telecommunications Fees - Section 41.21(1) of the Telecommunications Act grants the CRTC authority to create the Unsolicited Telecommunications Fees Regulations. The Unsolicited Telecommunications Fees Regulations, came into effect on April 1, 2013, for the 2013-2014 fiscal year. These fees are used to fund the CRTC's DNCL investigation and enforcement activities, on a cost recovery basis, from fees assessed to telemarketers. In accordance with subsection 4(4) of the Unsolicited Telecommunications Fees Regulations (SOR/2013-7), the Commission's telemarketing regulatory costs for the fiscal year 2013-14 were estimated at $3.3M. The actual amount of Unsolicited Telecommunications fees revenue collected amounted to $3.1M (Compliance and Enforcement Order CRTC 2014-307). These regulations can be found on the Department of Justice website.

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