Archived – Quarterly Financial Report for the quarter ended December 31, 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 December 31.

Chart 1: Comparison of gross budgetary authorities and expenditures as of December 21, 2014, and December 31, 2015, in thousands of dollars

Description for Chart 1: Comparison of gross budgetary authorities and expenditures as of December 31, 2014, and December 31, 2015, in thousands of dollars

This bar graph shows Statistics Canada's budgetary authorities and expenditures, in thousands of dollars, as of December 31, 2014 and 2015:

  • As at December 31, 2014
    • Net budgetary authorities: $455,803
    • Vote netting authority: $120,000
    • Total authority: $575,803
    • Net expenditures for the period ending December 31: $365,813
    • Year-to-date revenues spent from vote netting authority for the period ending December 31: $30,214
    • Total expenditures: $396,027
  • As at December 31, 2015
    • Net budgetary authorities: $535,941
    • Vote netting authority: $120,000
    • Total authority: $655,941
    • Net expenditures for the period ending December 31: $378,686
    • Year-to-date revenues spent from vote netting authority for the period ending December 31: $44,348
    • Total expenditures: $423,034

Chart 1 outlines the gross budgetary authorities, which represent the resources available for use for the year as of December 31.

Significant changes to authorities

During the third quarter, Statistics Canada authorities increased by $4.5 million compared with the second quarter of 2015-2016. The increase is related to funding received for the arbitral decision awarded to Statistical Survey Operations’ interviewers workforce.

Total authorities available for 2015–2016 have increased by $80.1 million, or 14%, from the previous year, from $575.8 million to $655.9 million (Chart 1). This net increase was mostly the result of the following:

  • increase for the Census of Population Program ($92 million), as well as for the Census of Agriculture ($7.2 million)
  • increase in funding received for collective agreements mainly for the interviewers ($4.6 million)

This increase is offset by the following:

  • decrease in the value of the carry-forward ($16.5 million)
  • no reimbursement requested from Treasury Board Secretariat for specific salary expenditures in 2015-16 ($5.7 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 third quarter increased by $12.9 million, or 3.5% from the previous year, from $365.8 million to $378.7 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 71% of its authorities by the end of the third quarter, compared with 80% 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 Q3 year-to-date variation between fiscal year 2014-2015 and 2015-2016
$'000 %
(01) Personnel 31,104 9.0
(02) Transportation and communications 2,040 23.8
(03) Information 4,163 450.0
(04) Professional and special services (3,693) (23.5)
(05) Rentals 4,541 61.3
(06) Repair and maintenance (311) (28.9)
(07) Utilities, materials and supplies 48 3.4
(08) Acquisition of land, buildings and works 0 0
(09) Acquisition of machinery and equipment 2,671 416.7
(10) Transfer payments 0 0
(12) Other subsidies and payments (13,556) (98.8)
Total gross budgetary expenditures 27,007 6.8
Less revenues netted against expenditures
Revenues 14,134 46.8
Total net budgetary expenditures 12,873 3.5

Description for Table A: 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 third 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.

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 as well as an increase in collection activities due to the cyclical nature of some surveys.

03) Information: The increase was the result of printing expenses for the Census as well as 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, as well as additional acquisitions for the Census. Also, there was an increase in the purchase of office equipment attributable to our space optimization plan.

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 and a new significant cost recovery survey contract.

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, 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 third 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

There have been significant changes to operations, personnel and programs over the last quarter due to the hiring of close to 600 employees for regional operations related to the 2016 Census of Population Program. The increase in activities related to this program will perpetuate over the coming quarters.

Approval by senior officials

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

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 December 31; 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 December 31, 2015 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 484,748 131,624 377,643
(02) Transportation and communications 38,602 4,354 10,607
(03) Information 17,340 2,876 5,088
(04) Professional and special services 56,557 5,163 12,053
(05) Rentals 25,410 1,042 11,955
(06) Repair and maintenance 7,559 289 766
(07) Utilities, materials and supplies 11,104 735 1,450
(08) Acquisition of land, buildings and works 0 0 0
(09) Acquisition of machinery and equipment 14,437 827 3,312
(10) Transfer payments 100 0 0
(12) Other subsidies and payments 84 20 160
Total gross budgetary expenditures 655,941 146,930 423,034
Less revenues netted against expenditures
Revenues 120,000 24,651 44,348
Total revenues netted against expenditures 120,000 24,651 44,348
Total net budgetary expenditures 535,941 122,279 378,686
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
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 December 31; 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 December 31, 2014 Year-to-date used at quarter-end
in thousands of dollars
Expenditures
(01) Personnel 446,827 118,124 346,539
(02) Transportation and communications 33,810 3,514 8,567
(03) Information 3,286 519 925
(04) Professional and special services 46,744 7,503 15,746
(05) Rentals 17,233 979 7,414
(06) Repair and maintenance 9,228 413 1,077
(07) Utilities, materials and supplies 17,368 558 1,402
(08) Acquisition of land, buildings and works 0 0 0
(09) Acquisition of machinery and equipment 1,080 173 641
(10) Transfer payments 0 0 0
(12) Other subsidies and payments 227 122 13,716
Total gross budgetary expenditures 575,803 131,905 396,027
Less revenues netted against expenditures
Revenues 120,000 11,553 30,214
Total revenues netted against expenditures 120,000 11,553 30,214
Total net budgetary expenditures 455,803 120,352 365,813

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 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 December 31; and year to date used at quarter-end 2015-2016.

Table 2:
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 December 31; and year to date used at quarter-end 2014-2015.

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 December 31; 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 December 31, 2015 Year to date used at quarter-end
in thousands of dollars
Vote 105 — Net operating expenditures 466,863 105,009 326,877
Statutory authority — Contribution to employee benefit plans 69,078 17,270 51,809
Total budgetary authorities 535,941 122,279 378,686
>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 December 31; 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 December 31, 2014 Year to date used at quarter-end
in thousands of dollars
Vote 105 — Net operating expenditures 392,421 106,149 323,204
Statutory authority — Contribution to employee benefit plans 63,382 14,203 42,609
Total budgetary authorities 455,803 120,352 365,813

Description for Appendix B: Statement of authorities (unaudited)
Table 1:
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 December 31; and year to date used at quarter-end for 2015-2016.

Table 2:
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 December 31; and year to date used at quarter-end for 2014-2015.