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 2013–2014 Main Estimates and in the Statistics Canada 2013–2014 Report on Plans and Priorities.

The quarterly financial report

• should be read in conjunction with the 2013–2014 Main Estimates, the Quarterly Financial Report for the quarter ended June 30, 2013, the Quarterly Financial Report for the quarter ended September 30, 2013, and Canada's Economic Action Plan 2012 (Budget 2012);
• has been prepared by management, as required by Section 65.1 of the Financial Administration Act, and in the form and manner prescribed by Treasury Board;
• has not been subject to an external audit or review.

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 2013–2014 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.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result, the measures announced in Budget 2012 could not be reflected in the 2012–2013 Main Estimates.

In fiscal year 2012–2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013–2014, the changes to departmental authorities were reflected in the 2013–2014 Main Estimates tabled in Parliament.

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 December 31.

Description for chart 1

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 $94.2 million compared with the second quarter of 2013–2014. Most of the increase is related to

• funding received for the 2016 Census of Population Program ($37.4 million), as well as the 2016 Census of Agriculture Program ($4.3 million);
• funding received related to the carry-forward from fiscal year 2012–2013 to 2013–2014 ($23.8 million);
• funding received from Treasury Board Secretariat for specific salary expenditures  ($29.6 million);
• funding removed for the transfer of funds to Shared Services Canada for workplace technology device software ($1.6 million).

Total authorities available for 2013–2014 have decreased by $13.5 million, or 7%, from the previous year, from $628.2 million to $614.7 million (Chart 1). This net decrease was mostly the result of the following:

• decreased funding for the 2011 Census of Population and the National Household Survey ($43.3 million), as well as the 2011 Census of Agriculture ($1.9 million) as the programs are winding down;
• increased funding for the 2016 Census of Population Program ($37.4 million), as well as the 2016 Census of Agriculture Program ($4.3 million);
• net reductions related to Budget 2012 saving measures ($11.3 million), which were included in the 2013–2014 Main Est­imates;
• a smaller carry-forward amount was requested in 2013–2014 than in 2012–2013 ($ 13.8 million reduction);
• a greater amount of funding was received from Treasury Board Secretariat for specific salary expenditures ($6.7 million increase);
• partially offset by an increase in funding for collective agreements ($9.8 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 2012–2013 and 2013–2014.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the third quarter decreased by $26.9 million, or 7%, from $377.0 million to $350.1 million. (See Table A: Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 65% of its authorities by the end of the third quarter, compared with 67% in the same quarter of 2012–2013.

Table summary
This table displays the variance of departmental expenditures by standard object between fiscal 2012-2013 and 2013-2014. 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.
Table A: Variation in Departmental Expenditures by Standard Object (unaudited)

Departmental Expenditures Variation by Standard Object	Q3 year-to-date variation
	$'000	%
Note: Explanations are provided for variances of more than $1 million.
(01) Personnel	-30,083	-7.6
(02) Transportation and communications	-1,445	-15.7
(03) Information	-36	-9.9
(04) Professional and special services	3,012	40.2
(05) Rentals	392	5.9
(06) Repair and maintenance	163	68.7
(07) Utilities, materials and supplies	371	29.6
(08) Acquisition of land, buildings and works	0	0
(09) Acquisition of machinery and equipment	3,015	470.4
(10) Transfer payments	0	0
(12) Other subsidies and payments	-45	-77.6
Total gross budgetary expenditures	-24,656	-5.8
Less revenues netted against expenditures
Revenues	2,268	5.1
Total net budgetary expenditures	-26,924	-7.1

01) Personnel: The decrease is primarily the result of a significant reduction in payments following the implementation of the Workforce Adjustment Directive. The remaining decrease is related to lower salary expenditures that relate to a smaller workforce, as well as lower retroactive payments that resulted from the settlement of collective agreements. These decreases are partially offset by an increase in severance liquidation payments related to the signing of collective agreements.

02) Transportation and communications: The decrease was the result of reduced field collection requirements for certain cost recovery projects.

04) Professional and special services: The increase was the result of timing differences between years for the payment of additional IT charges from Shared Services Canada. In addition, there was increased spending for training as well as informatics services.

09) Acquisition of machinery and equipment: The increase was the result of timing differences for acquisition of computer equipment and mobile collection units, as well as additional equipment requirements related to the Agency's space optimization project.

The increase in revenues was primarily the result of timing differences between years for the receipts of funds and scheduled key deliverables.

C) Risks and uncertainties

Budgetary pressures, arising from reduced appropriations and reduced cost-recovery revenues, resulted in financial and human resource management challenges in 2012–2013. To manage human resource risks, the Agency opted to move quickly to implement all mandated program adjustments and corresponding workforce reductions. To manage financial risks, given uncertainties over the timing of costs arising from workforce adjustment and the speed of implementation of program adjustments, additional controls were implemented on non-salary expenditures.

In 2013–2014, Statistics Canada plans to continue to meet these challenges 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.

D) Significant changes to operations, personnel and programs

2011 Census of Population and the National Household Survey

Data quality studies for the 2011 Census and National Household Survey will continue through 2013–2014. Major releases for the 2011 National Household Survey occurred on May 8, June 26, and September 11, 2013, and are now complete.

2016 Census of Population Program

Planning for the 2016 Census of Population has begun, including assessing users' content needs and beginning to test questionnaire content. Systems, processes and methodologies are also being developed or updated based on lessons learned from the 2011 Census Program.

E) Budget 2012 implementation

This section provides an overview of the savings measures announced in Budget 2012 that are being implemented 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.

Statistics Canada's savings target as announced in Budget 2012 Economic Action Plan is $33.9 million by 2014–2015. This reduction is being implemented progressively, beginning with $8.3 million on April 1, 2012, rising to $18.3 million on April 1, 2013, in order to achieve the full reduction by April 1, 2014. The reductions, as of April 1, 2013, 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.

Year-to-date expenditures for 2013–2014 are lower than in the previous fiscal year. The reduction is partially the result of the reduced workforce required after implementing the program adjustments mentioned above.

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

Table summary
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 December 31; and year to date used at quarter-end 2013-2014.
Departmental budgetary expenditures by Standard Object (unaudited)

	Fiscal year 2013-2014
	Planned expenditures for the year ending March 31, 2014	Expended during the quarter ended December 31, 2013	Year-to-date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	489,964	116,429	365,756
(02) Transportation and communications	20,407	2,780	7,752
(03) Information	3,566	139	328
(04) Professional and special services	44,387	5,105	10,509
(05) Rentals	12,460	819	7,067
(06) Repair and maintenance	16,231	136	400
(07) Utilities, materials and supplies	16,398	579	1,624
(08) Acquisition of land, buildings and works	0	0	0
(09) Acquisition of machinery and equipment	11,069	780	3,656
(10) Transfer payments	0	0	0
(12) Other subsidies and payments	242	6	13
Total gross budgetary expenditures	614,724	126,773	397,105
Less revenues netted against expenditures
Revenues	120,000	24,883	47,009
Total revenues netted against expenditures	120,000	24,883	47,009
Total net budgetary expenditures	494,724	101,890	350,096

Table summary
This table displays the departmental expenditures by standard object for the fiscal year 2012-2013. 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 2012-2013.
Departmental budgetary expenditures by Standard Object (unaudited)

	Fiscal year 2012-2013
	Planned expenditures for the year ending March 31, 2013	Expended during the quarter ended December 31, 2012	Year-to-date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	478,260	135,682	395,839
(02) Transportation and communications	36,519	3,394	9,197
(03) Information	4,803	170	364
(04) Professional and special services	45,821	3,042	7,497
(05) Rentals	11,579	958	6,675
(06) Repair and maintenance	21,304	105	237
(07) Utilities, materials and supplies	17,951	514	1,253
(08) Acquisition of land, buildings and works	0	0	0
(09) Acquisition of machinery and equipment	11,191	105	641
(10) Transfer payments	505	0	0
(12) Other subsidies and payments	241	3	58
Total gross budgetary expenditures	628,174	143,973	421,761
Less revenues netted against expenditures
Revenues	120,000	20,080	44,741
Total revenues netted against expenditures	120,000	20,080	44,741
Total net budgetary expenditures	508,174	123,893	377,020

Table summary
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 December 31; and year to date used at quarter-end for 2013-2014.
Statement of Authorities (unaudited)

	Fiscal year 2013-2014
	Total available for use for the year ending March 31, 2014*	Used during the quarter ended December 31, 2013	Year-to-date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 105 – Net operating expenditures	432,557	86,348	303,470
Statutory authority – Contribution to employee benefit plans	62,167	15,542	46,626
Total budgetary authorities	494,724	101,890	350,096

Table summary
This table displays the departmental authorities for the fiscal year 2012-2013. 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 2012-2013.
Statement of Authorities (unaudited)

	Fiscal year 2012-2013
	Total available for use for the year ended March 31, 2013*	Used during the quarter ended December 31, 2012	Year-to-date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 105 – Net operating expenditures	439,016	106,603	325,150
Statutory authority – Contribution to employee benefit plans	69,158	17,290	51,870
Total budgetary authorities	508,174	123,893	377,020

 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 meet 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 conducts 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 2013–2014 Main Estimates and in the Statistics Canada 2013–2014 Report on Plans and Priorities.

The quarterly financial report:

• should be read in conjunction with the 2013–2014 Main Estimates, the Quarterly Financial Report for the quarter ended June 30, 2013, and Canada's Economic Action Plan 2012 (Budget 2012)
• has been prepared by management, as required by Section 65.1 of the Financial Administration Act, and in the form and manner prescribed by Treasury Board
• has not been subject to an external audit or review.

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 2013-2014 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.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result, the measures announced in Budget 2012 could not be reflected in the 2012–2013 Main Estimates.

In fiscal year 2012-2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013-2014, the changes to departmental authorities were reflected in the 2013–2014 Main Estimates tabled in Parliament.

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

There were no changes to Statistics Canada's authorities in the second quarter.

Total authorities available for 2013-2014 have decreased by $91.9 million, or 15%, from the previous year, from $612.4 million to $520.5 million (Chart 1). This net decrease was mostly the result of the following:

• decreased funding for the 2011 Census of Population and the National Household Survey ($43.3 million), as well as the 2011 Census of Agriculture ($1.9 million) as the programs are winding down
• reductions related to Budget 2012 ($18.3 million), which were included in the 2013–2014 Main Estimates
• the carry-forward amount has not been received as of the end of the second quarter of 2013-2014 as it was in 2012-2013
• partly offset by an increase in funding for collective agreements ($9.2 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 2012-2013 and 2013-2014.

Significant changes to expenditures

Total expenditures recorded for the second quarter, ending September 30, 2013, decreased $16.9 million, or 11%, from the same quarter of the previous year, from $147.9 million to $131.0 million. Year-to-date expenditures recorded to the end of the second quarter decreased $7.4 million, or 3%, from $277.8 million to $270.3 million. (See Table A: Year-to-year Variation in Departmental Expenditures by Standard Object.)

Statistics Canada spent approximately 52% of its authorities by the end of the second quarter, compared with 45% in the same quarter of 2012-2013.

Table summary
This table displays the variance of departmental expenditures by standard object between fiscal 2012-2013 to 2013-2014. The variance is calculated for the year to date expenditures as of 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 as of the end of the second quarter.
Table A: Variation in Departmental Expenditures by Standard Object (unaudited)

Variation in Departmental Expenditures by Standard Object	Q2 year-to-date variation
	$'000	%
Note: Explanations are provided for variances of more than $1 million.
(01) Personnel	-10,830	-4.2
(02) Transportation and communications	-831	-14.3
(03) Information	-5	-2.6
(04) Professional and special services	949	21.3
(05) Rentals	532	9.3
(06) Repair and maintenance	131	98.5
(07) Utilities, materials and supplies	306	41.4
(08) Acquisition of land, buildings and works	-	-
(09) Acquisition of machinery and equipment	2,340	436.6
(10) Transfer payments	-	-
(12) Other subsidies and payments	-48	-87.3
Total gross budgetary expenditures	-7,456	-2.7
Less revenues netted against expenditures
Revenues	-2,535	-10.3
Total net budgetary expenditures	-4,921	-1.9

01) Personnel: In early 2013-2014, Statistics Canada incurred expenditures for severance liquidations related to the signing of collective agreements. These expenditures were offset by reduced payments related to the Workforce Adjustment Directive and by lower salary expenditures resulting from a smaller workforce.

09) Acquisition of machinery and equipment: The increase was the result of acquiring computer equipment in the first quarter.

The decrease in revenues was primarily the result of timing differences between years for the receipts of funds and scheduled key deliverables.

C) Risks and uncertainties

Budgetary pressures, arising from reduced appropriations and reduced cost-recovery revenues, resulted in financial and human resource management challenges in 2012-2013. To manage human resource risks, the Agency opted to move quickly to implement all mandated program adjustments and corresponding workforce reductions. To manage financial risks, given uncertainties over the timing of costs arising from workforce adjustment and the speed of implementation of program adjustments, additional controls were implemented on non-salary expenditures and a number of significant expenditures were re-profiled.

In 2013-2014, Statistics Canada plans to continue to meet these challenges 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.

D) Significant changes to operations, personnel and programs

2011 Census of Population and the National Household Survey

Data quality studies for the 2011 Census and National Household Survey will continue through 2013-2014. Major releases for the 2011 National Household Survey occurred on May 8^th, June 26^th, and September 11^th 2013, and are now complete.

E) Budget 2012 implementation

This section provides an overview of the savings measures announced in Budget 2012 that are being implemented 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.

Statistics Canada's savings target as announced in Budget 2012 Economic Action Plan is $33.9 million by 2014-2015. This reduction is being implemented progressively, beginning with $8.3 million on April 1, 2012, rising to $18.3 million on April 1, 2013, in order to achieve the full reduction by April 1, 2014. The reductions, as of April 1, 2013, 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.

Expenditures in the current quarter of 2013-2014 are lower than in the same quarter of the previous fiscal year. The reduction is mainly the result of the reduced workforce required after implementing the program adjustments mentioned above.

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

Table summary
This table displays the departmental expenditures by standard object for the fiscal year 2012-2013. 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 2012-2013.
Departmental budgetary expenditures by Standard Object (unaudited)

	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

Table summary
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.
Departmental budgetary expenditures by Standard Object (unaudited)

	Fiscal year 2012-2013
	Planned expenditures for the year ending March 31, 2013 *	Expended during the quarter ended September 30, 2012	Year-to-date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	462,103	137,635	260,157
(02) Transportation and communications	36,595	2,927	5,804
(03) Information	4,812	117	195
(04) Professional and special services	45,908	2,976	4,455
(05) Rentals	11,603	3,423	5,717
(06) Repair and maintenance	21,345	112	132
(07) Utilities, materials and supplies	17,984	296	739
(08) Acquisition of land, buildings and works	-	-	-
(09) Acquisition of machinery and equipment	11,213	430	536
(10) Transfer payments	561	-	-
(12) Other subsidies and payments	242	10	55
Total gross budgetary expenditures	612,366	147,926	277,788
Less revenues netted against expenditures
Revenues	120,000	19,606	24,661
Total revenues netted against expenditures	120,000	19,606	24,661
Total net budgetary expenditures	492,366	128,320	253,127

Table summary
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 and Budgetary Statutory 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.
Statement of Authorities (unaudited)

	Fiscal year 2013-2014
	Total available for use for the year ending March 31, 2014*	Used during the quarter ended September 30, 2013	Year-to-date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
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

Table summary
This table displays the departmental authorities for the fiscal year 2012-2013. The row headers provide information by type of authority, Vote 105 – Net operating expenditures and Budgetary Statutory 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 2012-2013.
Statement of Authorities (unaudited)

	Fiscal year 2012-2013
	Total available for use for the year ended March 31, 2013*,**	Used during the quarter ended September 30, 2012	Year-to-date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end. ** Total available for use does not reflect the measures announced in Budget 2012.
Vote 105 – Net operating expenditures	423,208	111,030	218,547
Statutory authority – Contribution to employee benefit plans	69,158	17,290	34,580
Total budgetary authorities	492,366	128,320	253,127

 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 meet 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 conducts 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 coordinate 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 2013–2014 Main Estimates and in the Statistics Canada 2013–2014 Report on Plans and Priorities.

The quarterly financial report

• should be read in conjunction with the 2013–2014 Main Estimates, and with Canada's Economic Action Plan 2012 (Budget 2012)
• has been prepared by management, as required by Section 65.1 of the Financial Administration Act, and in the form and manner prescribed by Treasury Board
• has not been subject to an external audit or review.

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 2013-2014 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.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result, the measures announced in Budget 2012 could not be reflected in the 2012-2013 Main Estimates.

In fiscal year 2012-2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013-2014, the changes to departmental authorities were reflected in the 2013-2014 Main Estimates tabled in Parliament.

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 June 30.

Description for chart 1

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 2013-2014 have decreased by $54.2 million, or 9%, from the previous year, from $574.7 million to $520.5 million (Chart 1). This net decrease was mostly the result of the following:

• decreased funding for the 2011 Census of Population and the National Household Survey ($43.3 million), as well as the 2011 Census of Agriculture ($1.9 million)
• reductions for Budget 2012 ($18.3 million), which were included in the 2013-2014 Main Est­imates
• partly offset by an increase in funding for collective agreements ($9.2 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 for 2012-2013 and 2013-2014 at $120 million in each of the fiscal years.

Significant changes to expenditures

Total expenditures recorded for the first quarter, ending June 30, 2013, increased by $9.4 million, or 7%, from the same quarter of the previous year, from $129.9 million to $139.3 million (see Table A: Year-to-year Variation in Departmental Expenditures by Standard Object).

Statistics Canada spent approximately 26% of its authorities by the end of the first quarter, compared with 23% in the same quarter of 2012-2013.

Table A: Year-to-year Variation in Departmental expenditures by Standard Object (Q1 2012-2013 to Q1 2013-2014) (unaudited)
This table displays the variance of departmental expenditures by standard object between fiscal 2012-2013 to 2013-2014. The variance is calculated for the first quarter variances. The row headers provide information by standard object. The column headers provide information in thousands of dollars and percentage variance for the first quarter variances.

Departmental Expenditures Variation by Standard Object	Year-to-year variation, Q1 2012-2013 to Q1 2013-2014
	000$	%
Note: An explanation is provided for variances of more than $1 million.
(01) Personnel	7,509	6.1
(02) Transportation and communications	-485	-16.9
(03) Information	-8	-10.4
(04) Professional and special services	372	25.2
(05) Rentals	-45	-2.0
(06) Repair and maintenance	12	57.1
(07) Utilities, materials and supplies	25	5.7
(08) Acquisition of land, building and works	-	-
(09) Acquisition of machinery and equipment	2,093	1,974.5
(10) Transfer payments	-	-
(12) Other subsidies and payments	-40	-88.9
Total gross budgetary expenditures	9,433	7.3
Less revenues netted against expenditures
Revenues	10,008	198.0
Total net budgetary expenditures	-575	-0.5

01) Personnel: In the first quarter of 2013-2014, Statistics Canada incurred expenditures for severance liquidations related to the signing of collective agreements and a small amount related to the Workforce Adjustment Directive. These expenditures were partly offset by lower salary expenditures resulting from a smaller workforce.

09) Acquisition of machinery and equipment:The increase was the result of acquiring computer equipment in the first quarter.

The increase in revenues was primarily the result of a timing difference in the receipt of funds from a census cost-sharing agreement with another government department. In 2013-2014, the funds were received in the first quarter; in 2012-2013, they were received in the second quarter.

C) Risks and uncertainties

Budgetary pressures, arising from reduced appropriations and reduced cost-recovery revenues, resulted in significant challenges for financial and human resource management in 2012-2013. To manage human resource risks, the Agency opted to move quickly to implement all mandated program adjustments and corresponding workforce reductions. To manage financial risks, given uncertainties over the timing of costs arising from workforce adjustment and the speed of implementation of program adjustments, additional controls were implemented on non-salary expenditures and a number of significant expenditures were re-profiled.

In 2013-2014, Statistics Canada plans to continue to meet these challenges 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.

D) Significant changes to operations, personnel and programs

2011 Census of Population and the National Household Survey

Major releases for the 2011 National Household Survey are scheduled from May through August 2013: data certification and processing activities are progressing as planned. Data quality studies for the 2011 Census and National Household Survey will continue through 2013-2014.

E) Budget 2012 implementation

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

Statistics Canada's savings target as announced in Budget 2012 Economic Action Plan is $33.9 million by 2014-2015. This reduction is being implemented progressively, beginning with $8.3 million on April 1, 2012, rising to $18.3 million on April 1, 2013, in order to achieve the full reduction by April 1, 2014. The reductions as of April 1, 2013 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.

Expenditures in the current quarter of 2013-2014 are lower, excluding the costs associated with severance liquidation, than in the same quarter of the previous fiscal year. The $11.5 million reduction is mainly the result of the reduced workforce required after implementing the program adjustments mentioned above.

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

Table 2 Departmental budgetary expenditures by Standard Object (unaudited) 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 June 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 June 30, 2013	Year to date used at quarter-end
	in thousands of dollars
Expenditures
(01) Personnel	419,449	130,031	130,031
(02) Transportation and communications	26,173	2,391	2,391
(03) Information	2,656	69	69
(04) Professional and special services	33,940	1,851	1,851
(05) Rentals	9,224	2,248	2,248
(06) Repair and maintenance	11,951	33	33
(07) Utilities, materials and supplies	12,355	468	468
(08) Acquisition of land, building and works	-	-	-
(09) Acquisition of machinery and equipment	4,586	2,199	2,199
(10) Transfer payments	-	-	-
(12) Other subsidies and payments	175	5	5
Total gross budgetary expenditures	520,509	139,295	139,295
Less revenues netted against expenditures
Revenues	120,000	15,063	15,063
Total revenues netted against expenditures	120,000	15,063	15,063
Total net budgetary expenditures	400,509	124,232	124,232

Table 3 - This table displays the departmental expenditures by standard object for the fiscal year 2012-2013. 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 2012-2013.

	Fiscal year 2012-2013
	Planned expenditures for the year ending March 31, 2013 *	Expended during the quarter ended June 30, 2012	Year-to-date used at quarter-end
	in thousands of dollars
* Planned expenditures do not reflect measures announced in Budget 2012.
Expenditures
(01) Personnel	462,103	122,522	122,522
(02) Transportation and communications	26,759	2,876	2,876
(03) Information	3,681	77	77
(04) Professional and special services	34,641	1,479	1,479
(05) Rentals	8,475	2,293	2,293
(06) Repair and maintenance	16,069	21	21
(07) Utilities, materials and supplies	13,801	443	443
(08) Acquisition of land, building and works	-	-	-
(09) Acquisition of machinery and equipment	8,424	106	106
(10) Transfer payments	561	-	-
(12) Other subsidies and payments	167	45	45
Total gross budgetary expenditures	574,681	129,862	129,862
Less revenues netted against expenditures
Revenues	120,000	5,055	5,055
Total revenues netted against expenditures	120,000	5,055	5,055
Total net budgetary expenditures	454,681	124,807	124,807

Table 4 Statement of Authorities (unaudited)
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 and Budgetary Statutory 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 2013-2014.

	Fiscal year 2013-2014
	Total available for use for the year ending March 31, 2014*	Used during the quarter ended June 30, 2013	Year to date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end.
Vote 105 – Net operating expenditures	338,342	108,690	108,690
Statutory authority – Contribution to employee benefit plans	62,167	15,542	15,542
Total Budgetary authorities	400,509	124,232	124,232

Table 5 - Statement of Authorities (unaudited)
This table displays the departmental authorities for the fiscal year 2012-2013. The row headers provide information by type of authority, Vote 105 – Net operating expenditures and Budgetary Statutory 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 2012-2013.

	Fiscal year 2012-2013
	Total available for use for the year ended March 31, 2013* , **	Used during the quarter ended June 30, 2012	Year to date used at quarter-end
	in thousands of dollars
* Includes only authorities available for use and granted by Parliament at quarter-end. ** Total available for use does not reflect the measures announced in Budget 2012.
Vote 105 – Net operating expenditures	385,523	107,517	107,517
Statutory authority – Contribution to employee benefit plans	69,158	17,290	17,290
Total Budgetary authorities	454,681	124,807	124,807

Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the Annual Capital Expenditures Survey

Preliminary Estimate for 2014 and Intentions for 2015. If you need more information, please call the Statistics Canada Help Line at the number below.

Help Line: 1-877-604-7828 or 1-800-972-9692

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Table of contents

Data-sharing agreements
Record linkages
Reporting period information
Definition
Industry characteristics

Data sharing Agreements

To reduce respondent burden, Statistics Canada has entered into data-sharing agreements with provincial and territorial statistical agencies and other government organizations, which have agreed to keep the data confidential and use them only for statistical purposes. Statistics Canada will only share data from this survey with those organizations that have demonstrated a requirement to use the data.

 

Section 11 of the Statistics Act provides for the sharing of information with provincial and territorial statistical agencies that meet certain conditions. These agencies must have the legislative authority to collect the same information, on a mandatory basis, and the legislation must provide substantially the same provisions for confidentiality and penalties for disclosure of confidential information as the Statistics Act. Because these agencies have the legal authority to compel businesses to provide the same information, consent is not requested and businesses may not object to the sharing of the data.

For this survey, there are Section 11 agreements with the provincial and territorial statistical agencies of Newfoundland and Labrador, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, and the Yukon.

The shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Section 12 of the Statistics Act provides for the sharing of information with federal, provincial or territorial government organizations. Under Section 12, you may refuse to share your information with any of these organizations by writing a letter of objection to the Chief Statistician and returning it with the completed questionnaire. Please specify the organizations with which you do not want to share your data.

For this survey, there are Section 12 agreements with the statistical agencies of Prince Edward Island, the Northwest Territories and Nunavut as well as Natural Resources Canada and Environment Canada.

For agreements with provincial and territorial government organizations, the shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Record linkages

To enhance the data from this survey, Statistics Canada may combine it with information from other surveys or from administrative sources.

Reporting period information

For the purpose of this survey, please report information for your 12 month fiscal period for which the Final day occurs on or between April 1, 2014 - March 31, 2015 for 2014 and April 1, 2015 - March 31, 2016 for 2015.

May 2013 - April 2014 (04/14)
June 2013 - May 2014 (05/14)
July 2013 - June 2014 (06/14)
Aug. 2013 - July 2014 (07/114)
Sept. 2013 - Aug. 2014 (08/14)
Oct. 2013 - Sept. 2014 (09/14)
Nov. 2013 - Oct. 2014 (10/14)
Dec. 2013 - Nov. 2014 (11/14)
Jan. 2014 - Dec. 2014 (12/14)
Feb. 2014 - Jan. 2015 (01/15)
March 2014 - Feb. 2015 (02/15)
April 2014 - March 2015 (03/15)

Here are other examples of fiscal periods that fall within the required dates:

• September 18, 2014 to September 15, 2015 (e.g., floating year-end)
• June 1, 2014 to December 31, 2015 (e.g., a newly opened business)

Definitions

What are Capital Expenditures?

Capital Expenditures are the gross expenditures on fixed assets for use in the operations of your organization or for lease or rent to others.

Include:

• Cost of all new buildings, engineering, machinery and equipment which normally have a life of more than one year and are charged to fixed asset accounts
• Modifications, acquisitions and major renovations
• Capital costs such as feasibility studies, architectural, legal, installation and engineering fees
• Subsidies
• Capitalized interest charges on loans with which capital projects are financed
• Work done by own labour force
• Additions to work in progress

How to Treat Leases

Include:

• assets acquired as a lessee through either a capital or financial lease;
• assets acquired for lease to others as an operating lease.

Exclude

• assets acquired for lease to others, either as a capital or financial lease.

Information for Government Departments

The following applies to government departments only:

Include

• all capital expenditures without taking into account the capitalization threshold of your department;
• Grants and/or subsidies to outside entities (e.g., municipalities, agencies, institutions or businesses) are not to be included;
• Departments are requested to exclude from reported figures budgetary items pertaining to any departmental agency and proprietary crown corporation as they are surveyed separately;
• Federal departments are to report expenditures paid for by the department, regardless of which department awarded the contract;
• Provincial departments are to include any capital expenditures on construction (exclude outlays for land) or machinery and equipment, for use in Canada, financed from revolving funds, loans attached to revolving funds, other loans, the Consolidated Revenue Fund or special accounts.

Industry characteristics

Report the value of the projects expected to be put in place during the year. Include the gross expenditures (including subsidies) on fixed assets for use in the operations of your organization or for lease or rent to others. Include all capital costs such as feasibility studies, architectural, legal, installation and engineering fees as well as work done by your own labour force.

New Assets, Renovation, Retrofit (Column 1), includes both existing assets being upgraded and acquisitions of new assets

The following explanations are Not applicable to government departments:

• include - Capitalized interest charges on loans with which capital projects are financed
• exclude - If you are capitalizing your leased fixed assets as a lessee in accordance with the Canadian Institute of Chartered Accountants’ recommendations, please exclude the total of the capitalization of such leases during the year from capital expenditures

Purchase of Used Canadian Assets (Column 2)

Definition: Used fixed assets may be defined as existing buildings, structures or machinery and equipment which have been previously used by another organization in Canada that you have acquired during the time period being reported on this questionnaire.

Explanation: The objective of our survey is to measure gross annual new acquisitions to fixed assets separately from the acquisition of gross annual used fixed assets in the Canadian economy as a whole.

Hence, the acquisition of a used fixed Canadian asset should be reported separately since such acquisitions would not change the aggregates of our domestic inventory of fixed assets, it would simply mean a transfer of assets within Canada from one organization to another.

Imports of used assets, on the other hand, should be included with the new assets (Column 1) because they are newly acquired for the Canadian economy.

Work in Progress:
Work in progress represents accumulated costs since the start of capital projects which are intended to be capitalized upon completion.

Typically capital investment includes any expenditure on an asset in which its’ life is greater than one year. Capital items charged to operating expenses are defined as expenditures which could have been capitalized as part of the fixed assets, but for various reasons, have been charged to current expenses.

Land
Capital expenditures for land should include all costs associated with the purchase of the land that are not amortized or depreciated.

Residential Construction
Report the value of residential structures including the housing portion of multi-purpose projects and of townsites with the following Exceptions:

• buildings that have accommodation units without self-contained or exclusive use of bathroom and kitchen facilities (e.g., some student and senior citizen residences)
• the non-residential portion of multi-purpose projects and of townsites
• associated expenditures on services

The exceptions should be included in the appropriate construction (e.g., non-residential) asset.

Non-Residential Building Construction (excluding land purchase and residential construction)
Report the total cost incurred during the year of building and engineering construction (contract and by own employees) whether for your own use or rent to others. Include also:

• the cost of demolition of buildings, land servicing and of site-preparation
• leasehold and land improvements
• townsite facilities, such as streets, sewers, stores, schools

Non-residential engineering construction

Report the total cost incurred during the year of engineering construction (contract and by own employees) whether for your own use or rent to others. Include also:

• the cost of demolition of buildings, land servicing and of site-preparation
• oil or gas pipelines, including pipe and installation costs
• all preconstruction planning and design costs such as engineer and consulting fees and any materials supplied to construction contractors for installation, etc.
• communication engineering, including transmission support structures, cables and lines, etc.
• electric power engineering, including wind and solar plants, nuclear production plants, power distribution networks, etc.

Machinery and Equipment
Report total cost incurred during the year of all new machinery, whether for your own use or for lease or rent to others. Any capitalized tooling should also be included. Include progress payments paid out before delivery in the year in which such payments are made. Receipts from the sale of your own fixed assets or allowance for scrap or trade-in should not be deducted from your total capital expenditures. Any balance owing or holdbacks should be reported in the year the cost is incurred.

Include:

• automobiles, trucks, professional and scientific equipment, office and store furniture and appliances
• computers (hardware and software), broadcasting, telecommunication and other information and communication technology equipment
• motors, generators, transformers
• any capitalized tooling expenses
• progress payments paid out before delivery in the year in which such payments are made
• any balance owing or holdbacks should be reported in the year the cost is incurred

Software

Capital expenditures for software should include all costs associated with the purchase of software.

Include:

• Pre-packaged software
• Custom software developed in-house/own account
• Custom software design and development, contracted out

Research and Development

Research and development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications. Basic and applied research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundation of phenomenon and observable facts. Experimental development is systematic work, drawing on existing knowledge gained from research and/or practical experience, which is directed to producing new materials, products or devices, installing new process, systems and services, or improving substantially those already produced or installed.

Capacity Utilization (Manufacturing Companies only)

Capacity use (utilization) is calculated by taking the actual production level for an establishment (production can be measured in dollars or units) and dividing it by the establishment’s capacity production level.

Capacity production is defined as maximum production attainable under normal conditions.

To calculate capacity production, follow the establishment’s operating practices with respect to the use of productive facilities, overtime, workshifts, holidays, etc. For example, if your plant normally operates with one shift of eight hours a day five days a week then capacity will be calculated subject to these conditions and not on the hypothetical case of three shifts a day, seven days a week.

Example:
Plant “A” normally operates one shift a day, five days a week and given this operating pattern capacity production is 150 units of product “A” for the month. In that month actual production of product “A” was 125 units. The capacity utilization rate for plant “A” is (125/150) * 100 = 83%

Now suppose that plant “A” had to open a shift on Saturdays to satisfy an abnormal surge in demand for product “A”. Given this plant’s normal operating schedule, capacity production remains at 150 units. Actual production hasgrown to 160 units, so capacity utilization would be (160/150) * 100 = 107%.