Archived – Quarterly Financial Report for the quarter ended September 30, 2015

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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 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 2015–2016 Main Estimates and in the Statistics Canada 2015–2016 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 2015–2016 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 September 30.

Description for Chart 1

Comparison of gross budgetary authorities and expenditures as of September 30, 2014, and September 30, 2015, in thousands of dollars

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, Statistics Canada authorities increased by $6.4 million compared with the first quarter of 2015-2016. The increase is related to funding received for the carry-forward of funds from fiscal year 2014-2015 to 2015-2016.

Total authorities available for 2015–2016 have increased by $129 million, or 25%, from the previous year, from $522.5 million to $651.5 million (Chart 1). This net increase was mostly the result of the following:

  • increase for the 2016 Census of Population Program ($141.9 million), as well as for the 2016 Census of Agriculture ($7.2 million)
  • decrease for the 2011 Census of Population Program ($2.8 million), as the program is complete
  • decrease in the value of the carry-forward ($16.5 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 2014–2015 and 2015–2016.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the second quarter increased by $10.9 million, or 4.5% from the previous year, from $245.5 million to $256.4 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 48% of its authorities by the end of the second quarter, compared with 61% in the same quarter of 2014–2015.

Table A: Variation in Departmental Expenditures by Standard Object (unaudited)
This table displays the variance of departmental expenditures by standard object between fiscal 2014-2015 and 2015-2016. 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 Q2 year-to-date variation between fiscal year 2014-2015 and 2015-2016
$'000 %
(01) Personnel 17,604 7.7
(02) Transportation and communications 1,200 23.7
(03) Information 1,806 444.8
(04) Professional and special services (1,353) (16.4)
(05) Rentals 4,478 69.6
(06) Repair and maintenance (187) (28.2)
(07) Utilities, materials and supplies (129) (15.3)
(08) Acquisition of land, buildings and works 0 0
(09) Acquisition of machinery and equipment 2,017 431.0
(10) Transfer payments 0 0
(12) Other subsidies and payments (13,454) (99.0)
Total gross budgetary expenditures 11,982 4.5
Less revenues netted against expenditures
Revenues 1,036 5.6
Total net budgetary expenditures 10,946 4.5

01) Personnel: The increase was mainly the result of the arbitration award including the severance liquidation payment for interviewers and increased salary expenditures due to the cyclical nature of the Census.

02) Transportation and Communications: The increase was the result of timing differences between years for the postage purchase and travel for cost recovery projects.

03) Information: The increase was the result of the coding review of the standard object definitions and inclusions (e.g., data purchases).

04) Professional and special services: The decrease was the result of the coding review of the standard object definitions and inclusions (e.g., data purchases) and a reduction in spending on informatics services.

05) Rentals: The increase was the result of the cyclical nature of the Census (e.g., rental of building space) and additional software licenses fees related to new infrastructure and due to changes in contract payment schedules.

09) Acquisition of machinery and equipment: The increase was the result of timing differences between years for the acquisition of computer equipment.

12) Other subsidies and payments: The decrease is a result of the one-time transition payment for implementing salary payment in arrears made in the first quarter of 2014–2015 by the Government of Canada.

Revenues: The increase is primarily the result of timing differences in the receipt of funds for scheduled key deliverables.

C) Risks and uncertainties

In 2015–2016, Statistics Canada plans to continue to monitor financial pressures due to the continuation of the federal operating budget freeze, with 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, 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

There have been no significant changes in relation to operations, personnel and programs over the last quarter. For the coming quarters, there will be notable changes in the operations due to increased activities related to the 2016 Census of Population Program.

Approval by senior officials

The original version was signed by
Wayne R. Smith, Chief Statistician
Stéphane Dufour, Chief Financial Officer
Date signed November 23, 2015

Departmental budgetary expenditures by Standard Object (unaudited) - 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 March 31; expended during the quarter ended September 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 September 30, 2015 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 480,260 123,874 246,019
(02) Transportation and communications 38,602 3,938 6,253
(03) Information 17,340 1,097 2,212
(04) Professional and special services 56,557 4,132 6,890
(05) Rentals 25,410 7,563 10,913
(06) Repair and maintenance 7,559 389 477
(07) Utilities, materials and supplies 11,102 390 715
(08) Acquisition of land, buildings and works 0 0 0
(09) Acquisition of machinery and equipment 14,437 1,098 2,485
(10) Transfer payments 100 0 0
(12) Other subsidies and payments 84 82 140
Total gross budgetary expenditures 651,451 142,563 276,104
Less revenues netted against expenditures
Revenues 120,000 13,742 19,697
Total revenues netted against expenditures 120,000 13,742 19,697
Total net budgetary expenditures 531,451 128,821 256,407
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 0 0 0
(09) Acquisition of machinery and equipment 1,017 280 468
(10) Transfer payments 0 0 0
(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
Statement of Authorities (unaudited) - Fiscal year 2015-2016
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 September 30; and year to date used at quarter-end for 2015-2016.
  Fiscal year 2015-2016
Total available for use for the year ending March 31, 2016* Used during the quarter ended September 30, 2015 Year to date used at quarter-end
in thousands of dollars
Vote 105 — Net operating expenditures 462,373 111,552 221,868
Statutory authority — Contribution to employee benefit plans 69,078 17,269 34,539
Total budgetary authorities 531,451 128,821 256,407
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 ended 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