Archived – Quarterly Financial Report for the Quarter Ended September 30, 2014

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

A) Introduction

Statistics Canada's mandate

Statistics Canada is a member of the Industry 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 2014–2015 Main Estimates and in the Statistics Canada 2014–2015 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 2014-2015 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 decrease in resources available for the year, as well as actual expenditures for the quarter ended September 30.

Description for chart 1


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

Significant changes to authorities

During the second quarter of 2014-2015, Statistics Canada authorities increased by $22.9 million compared with the first quarter. The increase is related to funding received for the carry-forward of funds from fiscal year 2013-2014 to 2014-2015.

Total authorities available for 2014-2015 have increased by $2.0 million, or 0.4%, from the previous year, from $520.5 million to $522.5 million (Chart 1). This net increase was mostly the result of the following:

  • timing difference in the receipt of the carry-forward, as it was received in the third quarter in 2013-2014 ($22.9 million);
  • receipt of an economic increase for collective agreements ($5 million).

The increase is offset by the following:

  • decrease for the 2011 Census of Population and the National Household Survey ($6.2 million) and the 2011 Census of Agriculture ($1.8 million), as the programs wind down;
  • net reductions related to Budget 2012 saving measures ($15.6 million);
  • decrease for the transfer of funds to Shared Services Canada for workplace technology device software ($1.6 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 2013-2014 and 2014-2015.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the second quarter decreased by $2.7 million, or 1%, from $248.2 million to $245.5 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 51% of its authorities by the end of the second quarter, compared with 52% in the same quarter of 2013-2014.

Table A: Variation in Departmental Expenditures by Standard Object (unaudited)
This table displays the variance of departmental expenditures by standard object between fiscal 2013-2014 and 2014-2015. 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.
Departmental Expenditures Variation by Standard Object Q1 year-to-date variation
$'000 %
(01) Personnel (20,912) (8.4)
(02) Transportation and communications 81 1.6
(03) Information 217 114.8
(04) Professional and special services 2,839 52.5
(05) Rentals 187 3.0
(06) Repair and maintenance 400 151.5
(07) Utilities, materials and supplies (201) (19.2)
(08) Acquisition of land, buildings and works - -
(09) Acquisition of machinery and equipment (2,408) (83.7)
(10) Transfer payments - -
(12) Other subsidies and payments 13,587 194,100.0
Total gross budgetary expenditures (6,210) (2.3)
Less revenues netted against expenditures
Revenues (3,465) (15.7)
Total net budgetary expenditures (2,745) 1.1

01) Personnel: The decrease resulted from incurring expenditures for severance liquidations related to the signing of collective agreements in the first quarter of 2013-2014. These expenditures were partly offset by increased salary expenditures, resulting from annual increments and the signing of collective bargaining agreements.

04) Professional and special services: The increase resulted from increased spending on informatics services.

09) Acquisition of machinery and equipment: The decrease resulted from fewer purchases of computer equipment in 2014-2015.

12) Other subsidies and payments: The increase resulted from a one-time transition payment for implementing salary payment in arrears by the Government of Canada.

The decrease in revenues resulted primarily from timing differences between years for the receipt of funds and scheduled key deliverables.

C) Risks and uncertainties

In 2014-2015, Statistics Canada plans to continue monitoring budget pressures, including the cost-saving measures announced in Budget 2014, with the following actions and mitigation strategies:

  • additional analysis, monitoring and validation of financial and human resources information through a modified monthly financial package for 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, Statistics Canada uses risk management and a risk-based decision-making process to prioritize and conduct its business. To do so effectively, the Agency identifies its key risks and develops corresponding mitigation strategies in its Corporate Risk Profile.

D) Significant changes to operations, personnel and programs

No significant changes in relation to operations, personnel and programs have occurred over the last quarter.

E) Budget 2012 implementation

This section provides an overview of the savings measures announced in Budget 2012 that are being implemented in order to refocus government and programs, make it easier for Canadians and businesses to deal with their government, as well as modernize and reduce the back office.

As announced in Budget 2012's Economic Action Plan, Statistics Canada's savings target is $33.9 million by 2014-2015. This reduction has been implemented progressively: it reached $8.3 million on April 1, 2012, rose to $18.3 million on April 1, 2013, and achieved the full reduction by April 1, 2014. The savings, as of April 1, 2014, have been reflected in Statistics Canada's Main Estimates. To meet this target, Statistics Canada has focused resources where they are most needed.

The savings incurred through these program adjustments represent moderate reductions in the production of statistics to support development, administration, and evaluation of policy, while continuing to meet the public's highest priority needs. In some cases, the information will continue to be available in a different format. A full list of program adjustments is available online.

There are no financial risks or uncertainties related to these reductions.

Approval by senior officials

The original version was signed by
Wayne R. Smith, Chief Statistician
Stéphane Dufour, Chief Financial Officer
Date signed November 21, 2014

Departmental budgetary expenditures by Standard Object (unaudited) - Fiscal year 2014-2015
This table displays the departmental expenditures by standard object for the fiscal year 2014-2015. 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 September 30; and year to date used at quarter-end 2014-2015.
  Fiscal year 2014-2015
Planned expenditures for the year ending March 31, 2015 Expended during the quarter ended September 30, 2014 Year to date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 401,121 116,514 228,415
(02) Transportation and communications 31,812 2,978 5,053
(03) Information 3,092 284 406
(04) Professional and special services 43,981 5,242 8,243
(05) Rentals 16,214 3,009 6,435
(06) Repair and maintenance 8,683 586 664
(07) Utilities, materials and supplies 16,340 474 844
(08) Acquisition of land, buildings and works - - -
(09) Acquisition of machinery and equipment 1,017 280 468
(10) Transfer payments - - -
(12) Other subsidies and payments 188 191 13,594
Total gross budgetary expenditures 522,448 129,558 264,122
Less revenues netted against expenditures
Revenues 120,000 5,710 18,661
Total revenues netted against expenditures 120,000 5,710 18,661
Total net budgetary expenditures 402,448 123,848 245,461
Departmental budgetary expenditures by Standard Object (unaudited) - Fiscal year 2013-2014
This table displays the departmental expenditures by standard object for the fiscal year 2013-2014. 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 September 30; and year to date used at quarter-end 2013-2014.
  Fiscal year 2013-2014
Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended September 30, 2013 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 419,449 119,296 249,327
(02) Transportation and communications 26,173 2,581 4,972
(03) Information 2,656 120 189
(04) Professional and special services 33,940 3,553 5,404
(05) Rentals 9,224 4,000 6,248
(06) Repair and maintenance 11,951 231 264
(07) Utilities, materials and supplies 12,355 577 1,045
(08) Acquisition of land, buildings and works - - -
(09) Acquisition of machinery and equipment 4,586 677 2,876
(10) Transfer payments - - -
(12) Other subsidies and payments 175 2 7
Total gross budgetary expenditures 520,509 131,037 270,332
Less revenues netted against expenditures
Revenues 120,000 7,063 22,126
Total revenues netted against expenditures 120,000 7,063 22,126
Total net budgetary expenditures 400,509 123,974 248,206
Statement of Authorities (unaudited) - Fiscal year 2014-2015
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 March 31; used during the quarter ended September 30; and year to date used at quarter-end for 2014-2015.
  Fiscal year 2014-2015
Total available for use for the year ending March 31, 2015* Used during the quarter ended September 30, 2014 Year to date used at quarter-end
in thousands of dollars
Vote 105 – Net operating expenditures 345,637 109,645 217,055
Statutory authority – Contribution to employee benefit plans 56,811 14,203 28,406
Total budgetary authorities 402,448 123,848 245,461
Statement of Authorities (unaudited) - Fiscal year 2013-2014
This table displays the departmental authorities for the fiscal year 2013-2014. 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 September 30; and year to date used at quarter-end for 2013-2014.
  Fiscal year 2013-2014
Total available for use for the year ended March 31, 2014* Used during the quarter ended September 30, 2013 Year to date used at quarter-end
in thousands of dollars
Vote 105 – Net operating expenditures 338,342 108,432 217,122
Statutory authority – Contribution to employee benefit plans 62,167 15,542 31,084
Total budgetary authorities 400,509 123,974 248,206
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