Table Of Content

This is the report to Albertans on BUDGET 2005 Investing in the Next Alberta. It is a permanent public record ofALL the dollars spent and the results achieved by the Government of Alberta for the 2005-06 fiscal year. Ex Libris Universitatis Albertensis © Copyright 2006 Government ofAlberta and its licensors. All rights reserved. ISBN 0-7785-4417-6 ISSN 1491-8781 ACCOUNTABILITY STATEMENT The government’sAnnual Report forthe yearended March 3 2006 was prepared under 1, my direction on behalfofthe government in accordance with the Government AccountabilityActand the government’s accounting policies. All ofthe government's policy decisions as at June 19, 2006 with material economic or fiscal implications have been considered in the preparation oftheAnnual Report. Shirley McClellan Minister of Finance i Digitized by the Internet Archive in 2017 with funding from University of Alberta Libraries https://archive.org/details/governmentofalbe01albe_7 The pastyearmarked anew era forAlberta as we began the Province’s second century. With accumulated debt retired in the previous year, we were able to celebrateAlberta’s 100th anniversary with investments in key areas, helping to buildtheNextAlberta. We were able to spendwisely, save for tomorrow, and give backtoAlbertans. In 2005-06, the Government ofAlberta reinforced advanced education as one ofourtop priorities, recognizing that awell-educatedworkforce is an importantkey to continued growth in the Province’s future. Substantial investments improved access to and affordability ofpost-secondary education. An advanced education endowmentwas established and Scholarship Fund assets were increased. We also made significant investments in basic education, allowing schools to hire new teachers and providing support for local initiatives to improve student learning and performance. In total, support for basic and advanced education increased 8.4 percent, or $533 million. The government supported new projects to reduce wait times and improve access to health services. Funding for health care increased 7.2 per cent, or $653 million, and accounted for about 36 per cent, or $9.7 billion, ofthe Province’s total expense. The Government ofAlberta made significant contributions to savings. The Heritage Fund's value was increased by more than $2 billion, with a $1 billion deposit, $382 million added for inflation proofing and $750 million added to establish the advanced education endowment. Another $550 million was deposited into endowments for scholarships, medical research, and science and engineering research. We also gave back toAlbertans. In January, $1.3 billion was provided toAlbertans through theAlberta 2005 ResourceRebate. Alberta’s increasingly diverse economy in manufacturing, agriculture and services - contributed to strong employment growth. Albertans benefited from nearly 27,000 newjobs in the past year and the lowest unemployment rate in the country. We also continued to enjoy the highest disposable incomes percapita and the lowest overall tax burdens in Canada. Indexation ofthe personal tax system protected taxpayers from paying higher taxes due to inflation, and enhancements to theAlberta Family Employment Tax Credit provided more benefits for working families. Albertans celebrated theircentennial year free from the burden ofaccumulated debt. Foryears we had envisioned what a debt-freeAlberta could be and in the past yearwe were able to start shaping it. A well-educated workforce, healthyAlbertans, a strong fiscal footing - this is the NextAlberta. Shirley McClellan Minister ofFinance in UNIVERSITY LIBRARY UNIVERSITY OF ALBERTA Table of Contents PREFACE vi EXECUTIVE SUMMARY BUDGET2005 - Investing in theNextAlberta Budget 2005 1 Fiscal Highlights 2 SurplusAllocation 3 Economic andTax Highlights 4 Overview ofProgram and Capital Spending 5 Spending Highlights 8 Revenue Highlights 14 Alberta Sustainability Fund 16 NetFinancial and CapitalAssets 17 Historical Fiscal Summary, 1985-86 to 2005-06 19 2005-06 Ministry Program Expense by Function 20 CONSOLIDATED FINANCIAL STATEMENTS Introduction 21 Management’s Responsibility forthe Consolidated Financial Statements 22 Auditor’s Report 23 Consolidated Statement ofOperations 24 Consolidated Statement ofFinancial Position 25 Consolidated Statement ofChange in Net FinancialAssets 26 Consolidated Statement ofCash Flows 27 Notes to the 2005-06 Consolidated Financial Statements 28 Schedules to the 2005-06 Consolidated Financial Statements 40 Revenues 40 1 2 Expenses by Ministry 41 3 Comparison ofExpenses by Function with Budget 42 4 Expenses by Object 42 5 ValuationAdjustments 43 6 Cash and Temporary Investments 43 7 Portfolio Investments 43 8 Equity in Commercial Enterprises 45 9 Equity in Crown-controlled SUCH Sector Organizations 46 10 Loans andAdvances 47 11 Inventories for Resale 48 12 Unmatured Debt 48 13 Debt ofAlberta Capital FinanceAuthority 50 14 Pension Obligations 51 15 OtherAccrued Liabilities 53 16 Tangible CapitalAssets 54 17 Guarantees 55 18 Listing ofOrganizations 56 MEASURING UP 61 v Preface The PublicAccounts ofAlberta are prepared in accordance with the Financial AdministrationActand the GovernmentAccountabilityAct. The Public Accounts consist ofthe annual report ofthe Government ofAlberta andthe annual reports ofeach ofthe 24 ministries. This annual report ofthe Government ofAlberta contains the Minister of Finance’s accountability statement, the consolidated financial statements of the Province and the Measuring Up report, which compares actual performance results to desired results set out in the government’s business plan. The annual reports ofministries, released in the fall ofeach year, contain Ministers’ accountability statements, the audited consolidated financial statements ofthe ministries and a comparison ofactual performance results to desiredresults set out in the ministries’business plans. Each ministry annual report also includes: • financial statements ofentities making up the ministry including departments (all departments combined form the General Revenue Fund), regulated funds, provincial agencies and Crown-controlled corporations, • other financial information as required by the FinancialAdministration Actand GovernmentAccountabilityAct either as separate reports or as a , part offinancial statements, to the extent that the ministry has anything to report, and • financial information relating to accountable organizations and trust funds. VI Summary Executive Government of Alberta Annual Report 2005-06 The Government ofAlbertaAnnual Report consists oftwo parts: • ConsolidatedFinancialStatements, which provide an overall accounting ofthe Government’s revenue and spending, and assets and liabilities. • Measuring Up, which reports on the progress that has been made towards achievingthe government’s goals. Annual reports foreach ministry are published in Septemberand provide additional detailed information onperformance and financial results.