FOR THE FISCAL YEAR ENDED MARCH 31, 2 0 0 1 | PUBLISHED IN SEPTEMBER 2 0 0 1 00TREASURY ANNUAL 01 REPORT TREASURY Treasury Annual Report 2000-01 TABLE OF CONTENTS Part 1 Preface .................................................................................................................................. 1 Ministers’ Accountability Statement...................................................................................... 3 A Message from the Ministers of Finance and Revenue .......................................................... 4 Management’s Responsibility for Reporting .......................................................................... 6 Operational Overview ........................................................................................................... 9 Treasury’s Goals for 2000-01 .................................................................................... 9 Treasury’s Core Businesses ........................................................................................ 9 Treasury’s Mission .................................................................................................... 9 Highlights ......................................................................................................................10 Treasury’s Operational Structure ..................................................................................... 11 Office of Budget and Management............................................................................... 11 Tax and Revenue Administration ................................................................................. 11 Investment Management ............................................................................................. 11 Liability Management ................................................................................................ 11 Treasury Operations .................................................................................................... 12 Regulatory Agencies..................................................................................................... 12 Financial Services....................................................................................................... 12 Relationship of Treasury Reporting Entities to Goals....................................................... 13 Department Organization............................................................................................... 14 Treasury Executive or Chief Operating Officers and Members of Boards, Councils and Commissons ............................................................................................................. 15 Acts Administered by Treasury ........................................................................................ 20 Report of the Auditor General on the Results Of Applying Specified .............................. Auditing Procedures to Key Performance Measures ................................................... 21 ISBN: 0-7785-1182-5 TREASURY ANNUAL REPORT 2 0 0 0 | 0 1 1i TABLE OF CONTENTS Results Analysis .................................................................................................................... 23 Revenue Highlights ........................................................................................................ 23 Expense Highlights ......................................................................................................... 23 Financial Results ............................................................................................................. 23 Goal 1 – A healthy and sustainable financial position...................................................... 25 Fiscal Responsibility – A Balanced Budget and More Debt Retired.................................. 25 Business Planning, Economic and Fiscal Policies and Forecasting ................................... 27 Federal-Provincial Fiscal Arrangements ........................................................................ 28 Pension Policy............................................................................................................. 29 Risk Management Services........................................................................................... 30 Goal 2 – Appropriate financial and performance information available to allow Albertans to hold Government accountable ...................................................... 31 Consolidated Budgets and Business Plans...................................................................... 31 Measuring and Reporting the Government’s Performance ............................................... 32 Treasury’s Interaction with Ministries ............................................................................ 32 Satisfaction with Treasury’s Performance ........................................................................ 32 ‘It’s Your Money’ Survey................................................................................................ 33 Auditor General’s Satisfaction with the Government’s Accountability System ..................... 33 Goal 3 – A fair, competitive and simple provincial tax system managed efficiently and effectively................................................................................................... 37 Low Taxes on Business ................................................................................................ 38 Alberta Energy Tax Refund ......................................................................................... 40 Property Taxes ............................................................................................................ 40 Tax Administration Initiatives ..................................................................................... 40 International Fuel Tax Program ............................................................................ 40 Federal Set-off Program ........................................................................................ 40 Treaty 7 Card Program ........................................................................................ 41 Tobacco Tax Uniformity ........................................................................................ 41 Fuel Tax Uniformity ............................................................................................. 41 ii2 TREASURY ANNUAL REPORT 2 0 0 0 | 0 1 TABLE OF CONTENTS Provincial Income Allocation Task Force ................................................................ 41 Advances in the Use of Technology ......................................................................... 41 Client Satisfaction ................................................................................................ 42 New Program Developments ................................................................................. 43 Goal 4 – Investment returns maximized and borrowing costs minimized subject to ........ acceptable risk ................................................................................................. 44 Investment Management ............................................................................................. 44 Changes over the year............................................................................................ 46 Performance ......................................................................................................... 47 Alberta Heritage Savings Trust Fund ............................................................................ 50 Heritage Fund Performance ................................................................................... 51 Liability Management ................................................................................................ 52 Performance Measures ........................................................................................... 52 Banking and Securities Administration ........................................................................ 54 Loans and Guarantees ................................................................................................ 54 Investment and Debt Accounting ................................................................................. 55 Investment and Debt Information Systems .................................................................... 55 Goal 5 – An efficient, fair and competitive capital market and an efficient and fair regulatory environment for financial institutions and private pension plans ...... 57 Alberta Securities Commission ..................................................................................... 57 Credit Union Deposit Guarantee Corporation .............................................................. 59 Financial Institutions and Insurance Activities .............................................................. 60 Alberta Insurance Council and Automobile Insurance Board.......................................... 61 Employment Pensions Activities .................................................................................... 61 Goal 6 – Quality financial services to Albertans through Alberta Treasury Branches, Alberta Municipal Financing Corporation and Alberta Pensions Administration Corporation ...................................................................................................... 63 Alberta Treasury Branches (ATB) ................................................................................. 63 Financial results..................................................................................................