Archived – Quarterly Financial Report for the quarter ended December 31, 2013

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

A) Introduction

Statistics Canada's mandate

Statistics Canada is a member of the Industry portfolio.

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

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

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

More information on Statistics Canada's mandate, roles, responsibilities and programs can be found in the 2013–2014 Main Estimates and in the Statistics Canada 2013–2014 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 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 %
(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
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
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