Quarterly Financial Report for the quarter ended June 30, 2016

Statement outlining results, risks and significant changes in operations, personnel and program

A) Introduction

Statistics Canada's mandate

Statistics Canada (the Agency) is a member of the Innovation, Science and Economic Development portfolio.

Statistics Canada’s role is to ensure that Canadians have access to a trusted source of statistics on Canada that meets their highest priority needs.

The Agency’s mandate derives primarily from the Statistics Act. The Act requires that the Agency collects, compiles, analyzes and publishes statistical information on the economic, social, and general conditions of the country and its people. It also requires that Statistics Canada conduct the census of population and the census of agriculture every fifth year, and protects the confidentiality of the information with which it is entrusted.

Statistics Canada also has a mandate to co-ordinate and lead the national statistical system. The Agency is considered a leader, among statistical agencies around the world, in co‑ordinating statistical activities to reduce duplication and reporting burden.

More information on Statistics Canada’s mandate, roles, responsibilities and programs can be found in the 2016–2017 Main Estimates and in the Statistics Canada 2016–2017 Report on Plans and Priorities.

The quarterly financial report

Statistics Canada has the authority to collect and spend revenue from other government departments and agencies, as well as from external clients, for statistical services and products.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency’s spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2016–2017 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

B) Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the net increase in resources available for the year, as well as actual expenditures for the quarter ended June 30.

Comparison of gross budgetary authorities and expenditures as of June 30, 2015, and June 30, 2016, in thousands of dollars

Description for Chart 1: Comparison of gross budgetary authorities and expenditures as of June 30, 2015, and June 30, 2016, in thousands of dollars

This bar graph shows Statistics Canada's budgetary authorities and expenditures, in thousands of dollars, as of June 30, 2015 and 2016:

  • As at June 30, 2015
    • Net budgetary authorities: $525,095
    • Vote netting authority: $120,000
    • Total authority: $645,095
    • Net expenditures for the period ending June 30: $127,586
    • Year-to-date revenues spent from vote netting authority for the period ending June 30: $5,955
    • Total expenditures: $133,541
  • As at June 30, 2016
    • Net budgetary authorities: $751,491
    • Vote netting authority: $120,000
    • Total authority: $871,491
    • Net expenditures for the period ending June 30: $238,410
    • Year-to-date revenues spent from vote netting authority for the period ending June 30: $12,573
    • Total expenditures: $250,983

Chart 1 outlines the gross budgetary authorities, which represent the resources available for use for the year as of June 30.

Significant changes to authorities

Total authorities available for 2016–2017 have increased by $226.4 million, or 35%, from the previous year, from $645.1 million to $871.5 million (Chart 1). This net increase was mostly the result of the following:

  • Increase for the Census of Population program ($210.6 million), as well as for the Census of Agriculture ($10 million);
  • Increase for the Survey of Financial Security and Annual Household Wealth ($4.9 million);
  • Increase in funding received for economic increases pertaining to interviewers’ compensation ($3.9 million).

This increase is offset by the following:

  • Budget allocated to Canada School of Public Service ($1.8 million).

In addition to the appropriations allocated to the Agency through the Main Estimates, Statistics Canada also has vote net authority within Vote 105, which entitles the Agency to spend revenues collected from other government departments, agencies, and external clients to provide statistical services. Vote netting authority is stable at $120 million in each of the fiscal years 2015–2016 and 2016–2017.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the first quarter increased by $110.8 million, or 86.9% from the previous year, from $127.6 million to $238.4 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Most of the increase in spending is due to the 2016 Census of Population program. Statistics Canada spent approximately 32% of its authorities by the end of the first quarter, compared with 24% in the same quarter of 2015–2016.

Table A: Variation in Departmental Expenditures by Standard Object (unaudited)
This table displays the variance of departmental expenditures by standard object between fiscal 2015-2016 and 2016-2017. The variance is calculated for year to date expenditures as at the end of the second quarter. The row headers provide information by standard object. The column headers provide information in thousands of dollars and percentage variance for the year to date variation.
Departmental Expenditures Variation by Standard Object Q1 year-to-date variation between fiscal year 2015-2016 and 2016-2017
$'000 %
(01) Personnel 17,454 14.3
(02) Transportation and communications 20,844 900.4
(03) Information 2,602 233.4
(04) Professional and special services 75,660 2,743.3
(05) Rentals 972 29.0
(06) Repair and maintenance 55 61.7
(07) Utilities, materials and supplies 170 52.1
(08) Acquisition of land, buildings and works - -
(09) Acquisition of machinery and equipment (362) (26.1)
(10) Transfer payments 100 100.0
(12) Other subsidies and payments (53) (91.5)
Total gross budgetary expenditures 117,442 87.9
Less revenues netted against expenditures
Revenues 6,618 111.1
Total net budgetary expenditures 110,824 86.9

01) Personnel: The increase was mainly due to the hiring to conduct census-related activities.

02) Transportation and Communications: The increase was the result of additional travel and postage expenses related to census activities.

03) Information: The increase was the result of printing census material and the implementation of the census media plan.

04) Professional and special services: The increase was due to remuneration for approximately 35,000 temporary census staff, recruited to participate in census collection and processing activities.

Revenues: The increase is primarily the result of timing differences between years for receipt of funds related to the census cost-sharing agreement with another government department. 

C) Risks and uncertainties

Many of the Agency’s collective agreements are currently expired and negotiations continue between the unions and Treasury Board. In 2016–2017, the Agency continues to monitor the potential financial impact once the collective agreements are signed, using the following actions and mitigation strategies:

  • additional analysis, monitoring and validation of financial and human resources information through a monthly financial review by budget holders;
  • review of monthly project dashboards in place across the Agency to monitor project issues, risks and alignment with approved budgets;
  • continued realignment and reprioritization of work.

In addition, while Statistics Canada continues to work collaboratively with its service providers to ensure affordable and timely delivery of its key statistical programs, the Agency has experienced issues and challenges with its information technology services during the first quarter.

Statistics Canada uses risk management and a risk-based decision-making process to prioritize and conduct its business.  In order to effectively do so the Agency identifies its key risks and develops corresponding mitigation strategies in its Corporate Risk Profile. 

D) Significant changes to operations, personnel and programs

In contrast with last year, Statistics Canada is undertaking major activities this fiscal year that are critical to the success of the 2016 Census of Population. These activities include finalizing the equipping of field offices, hiring field staff, collecting data, follow-up with respondents, processing of returns, closing local census offices and processing facilities, developing and testing dissemination systems and processes, and starting data quality and evaluation studies. These activities culminate in the first of the census data releases, the Population and Dwelling Counts, in February 2017. Approximately 35,000 temporary census staff were hired for census collection and processing for the period from April through mid-September. The activities of the 2016 Census program will wind down in the third quarter. 

Approval by senior officials

Description for Table A: Departmental expenditures by Standard Object (unaudited) This table displays the variance of departmental expenditures by standard object between fiscal 2015-2016 and 2016-2017.  The variance is calculated for year to date expenditures as at the end of the first quarter. The row headers provide information by standard object. The column headers provide information in thousands of dollars and percentage variance for the year to date variation.

The original version was signed by
Wayne R. Smith, Chief Statistician
Stéphane Dufour, Chief Financial Officer
Date signed August 22, 2016

 
Departmental budgetary expenditures by Standard Object (unaudited) - Fiscal year 2016-2017
This table displays the departmental expenditures by standard object for the fiscal year 2015-2016. The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending March 31; expended during the quarter ended June 30 and year to date used at quarter-end 2016-2017.
  Fiscal year 2016–2017
Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended June 30, 2016 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 537,192 139,599 139,599
(02) Transportation and communications 85,741 23,159 23,159
(03) Information 12,967 3,717 3,717
(04) Professional and special services 195,407 78,418 78,418
(05) Rentals 19,890 4,322 4,322
(06) Repair and maintenance 5,347 143 143
(07) Utilities, materials and supplies 5,978 495 495
(08) Acquisition of land, buildings and works - - -
(09) Acquisition of machinery and equipment 8,718 1,025 1,025
(10) Transfer payments 200 100 100
(12) Other subsidies and payments 51 5 5
Total gross budgetary expenditures 871,491 250,983 250,983
Less revenues netted against expenditures
Revenues 120,000 12,573 12,573
Total revenues netted against expenditures 120,000 12,573 12,573
Total net budgetary expenditures 751,491 238,410 238,410
Departmental budgetary expenditures by Standard Object (unaudited) (continued) - Fiscal year 2015-2016
This table displays the departmental expenditures by standard object for the fiscal year 2015-2016. The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending June 30; expended during the quarter ended June 30; and year to date used at quarter-end 2015-2016.
  Fiscal year 2015–2016
Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended June 30, 2015 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 480,260 122,145 122,145
(02) Transportation and communications 37,170 2,315 2,315
(03) Information 16,696 1,115 1,115
(04) Professional and special services 54,455 2,758 2,758
(05) Rentals 24,467 3,350 3,350
(06) Repair and maintenance 7,280 88 88
(07) Utilities, materials and supplies 10,685 325 325
(08) Acquisition of land, buildings and works - - -
(09) Acquisition of machinery and equipment 13,901 1,387 1,387
(10) Transfer payments 100 - -
(12) Other subsidies and payments 81 58 58
Total gross budgetary expenditures 645,095 133,541 133,541
Less revenues netted against expenditures
Revenues 120,000 5,955 5,955
Total revenues netted against expenditures 120,000 5,955 5,955
Total net budgetary expenditures 525,095 127,586 127,586

Description for Appendix A: Departmental expenditures by Standard Object (unaudited) Table 1:
This table displays the departmental expenditures by standard object for the fiscal year 2016-2017.  The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending March 31; expended during the quarter ended June 30; and year to date used at quarter-end 2016-2017.

Table 2:
This table displays the departmental expenditures by standard object for the fiscal year 2015-2016.  The row headers provide information by standard object for expenditures and revenues. The column headers provide information in thousands of dollars for planned expenditures for the year ending March 31; expended during the quarter ended June 30; and year to date used at quarter-end 2015-2016.

Statement of Authorities (unaudited) - Fiscal year 2016–2017
This table displays the departmental authorities for the fiscal year 2015-2016. The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending June 30; used during the quarter ended June 30; and year to date used at quarter-end for 2016-2017.
  Fiscal year 2016–2017
Total available for use for the year ending March 31, 2017* Used during the quarter ended June 30, 2016 Year to date used at quarter-end
in thousands of dollars
Vote 105 — Net operating expenditures 672,654 218,701 218,701
Statutory authority — Contribution to employee benefit plans 78,837 19,709 19,709
Total budgetary authorities 751,491 238,410 238,410
Statement of Authorities (unaudited) - Fiscal year 2015–2016
This table displays the departmental authorities for the fiscal year 2014-2015. The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending June 30; Used during the quarter ended June 30; and year to date used at quarter-end for 2015-2016.
  Fiscal year 2015–2016
Total available for use for the year ended March 31, 2016* Used during the quarter ended June 30, 2015 Year to date used at quarter-end
in thousands of dollars
Vote 105 — Net operating expenditures 456,017 110,316 110,316
Statutory authority — Contribution to employee benefit plans 69,078 17,270 17,270
Total budgetary authorities 525,095 127,586 127,586

Description for Appendix B: Statement of authorities (unaudited) Table 1:
This table displays the departmental authorities for the fiscal year 2016-2017.  The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending March 31; used during the quarter ended June 30; and year to date used at quarter-end for 2016-2017. 

Table 2:
This table displays the departmental authorities for the fiscal year 2015-2016.  The row headers provide information by type of authority, Vote 105 – Net operating expenditures, Statutory authority and Total Budgetary authorities. The column headers provide information in thousands of dollars for Total available for use for the year ending March 31; Used during the quarter ended June 30; and year to date used at quarter-end for 2015-2016. 

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