Quarterly Financial Report for the quarter ended June 30, 2018

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

A) Introduction

Statistics Canada's mandate

Statistics Canada (“the agency”) 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 2018-2019 Main Estimates and in the Statistics Canada 2018-2019 Departmental Plan.

The quarterly financial report:

  • should be read in conjunction with the 2018-2019 Main Estimates;
  • 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 federal 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 2018-2019 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 results 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 June 30.

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

Description for Chart 1: Comparison of gross budgetary authorities and expenditures as of June 30, 2017, and June 30, 2018

This bar graph shows Statistics Canada's budgetary authorities and expenditures, in thousands of dollars, as of June 30, 2017 and 2018:

  • As at June 30, 2017
    • Net budgetary authorities: $471,064
    • Vote netting authority: $120,000
    • Total authority: $591,064
    • Net expenditures for the period ending June 30: $122,197
    • Year-to-date revenues spent from vote netting authority for the period ending June 30: $17,218
    • Total expenditures: $139,415
  • As at June 30, 2018
    • Net budgetary authorities: $478,419
    • Vote netting authority: $120,000
    • Total authority: $598,419
    • Net expenditures for the period ending June 30: $129,286
    • Year-to-date revenues spent from vote netting authority for the period ending June 30: $17,347
    • Total expenditures: $146,633

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 2018-2019 have increased by $7.3 million, or 1.2%, from the previous year, from $591.1 million to $598.4 million (Chart 1). This net increase is mostly the result of the following:

  • An increase of $42.4 million for new cyclical funding received to cover planning and developmental activities related to the 2021 Census of Population program;
  • An increase of $20.8 million for negotiated salary adjustments;
  • An increase of $10.1 million for two programs; Housing Statistics Framework (Canadian Housing Statistics Program) and Measurement of Growth in International Visitors to Canada;
  • A decrease for the 2016 Census of Population program of $37.0 million and for the 2016 Census of Agriculture program of $2.9 million due to the cyclical nature of funding that is winding down;
  • A decrease of $26.6 million for the Statistical Survey Operations pay equity settlement.

In addition to the appropriations allocated to the agency through the Main Estimates, Statistics Canada also has vote net authority within Vote 1, which entitles the agency to spend revenues collected from other federal government departments, agencies, and external clients to provide statistical services. Vote netting authority is stable at $120 million in each of the fiscal years 2017-2018 and 2018-2019.

Significant changes to expenditures

Year-to-date net expenditures recorded to the end of the first quarter increased by $7.1 million, or 5.8% from the previous year, from $122.2 million to $129.3 million (See Table A: Variation in Departmental Expenditures by Standard Object).

Statistics Canada spent approximately 27% of its authorities by the end of the first quarter, compared with 26% in the same quarter of 2017-2018.

Table A: Variation in Departmental Expenditures by Standard Object (unaudited)
Table summary: This table displays the variance of departmental expenditures by standard object between fiscal 2017-2018 and 2018-2019. The variance is calculated for year to date expenditures as at the end of the first quarter. The row headers provide information by standard object. The column headers provide information in thousands of dollars and percentage variance for the year to date variation.
Departmental Expenditures Variation by Standard Object: Q1 year-to-date variation between fiscal year 2017-2018 and 2018-2019
$'000 %
Note: Explanations are provided for variances of more than $1 million.
(01) Personnel 3,672 2.9
(02) Transportation and communications -1,071 -31.1
(03) Information 53 6.1
(04) Professional and special services 1,700 52.4
(05) Rentals 1,039 30.3
(06) Repair and maintenance 74 136.3
(07) Utilities, materials and supplies -71 -27.6
(08) Acquisition of land, buildings and works 5 200.9
(09) Acquisition of machinery and equipment 761 36.9
(10) Transfer payments - -
(12) Other subsidies and payments 1,056 871.6
Total gross budgetary expenditures 7,218 5.2
Less revenues netted against expenditures:
Revenues 129 0.7
Total net budgetary expenditures 7,089 5.8

Personnel: The increase is mainly the result of the negotiated salary adjustments following the ratification of the collective agreements in 2017-2018.

Transportation and communications: The decrease is mainly due to a reduction in travel expenses related to operational activities. A large portion of this reduction is attributed to the Nunavut Inuit Labor Force Survey not being conducted in 2018-2019.

Professional and special services: The increase is mainly due to the hiring of external resources, the contribution paid to the Canada School of Public Service, as per the school's funding model, and the training taken by employees on the Statistical Analysis System (SAS).

Rentals: The increase is mainly due to maintenance of software licenses.

Other subsidies and payments: The increase is mainly due to the non-salary payments related to the Statistical Survey Operations pay equity settlement.

C) Risks and uncertainties

Statistics Canada is currently expending significant effort in modernizing its business processes and tools, in order to maintain its relevance and maximize the value it can provide Canadians. As a foundation piece for some of these efforts, the agency is working in collaboration with Shared Services Canada and Treasury Board (Chief Information Officer Branch) to ensure the agency has access to adequate IT services and support to attain its modernization objective. Costs and activities are projected based on various assumptions that can change depending on the nature and degree of work required to accomplish the initiatives. Risks and uncertainties are being mitigated by the agency’s strong financial planning management practices and business architecture.

D) Significant changes to operations, personnel and programs

There were no major changes to the departmental operations during this quarter. Minor changes in program activities with financial implications include:

  • The Census program is ramping down operations from the 2016 Census and is in the planning phase for the 2021 Census. As such, expenditures for this program are significantly lower than other years within the cycle.
  • Budget 2018 announced funding for new initiatives. Expenditures related to these new initiatives are expected to ramp up throughout the fiscal year.

Approval by senior officials

Approved by:

Anil Arora, Chief Statistician
Kathleen Mitchell, Acting Chief Financial Officer
Ottawa, Canada
Signed on: August 16, 2018

Appendix

Statement of Authorities (unaudited)
Fiscal year 2018-2019
Table summary: This table displays the departmental authorities for the fiscal year 2018-2019. 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 June 30; and year to date used at quarter-end for 2018-2019.
  Total available for use for the year ending March 31, 2019Tablenote 1 Used during the quarter ended June 30, 2018 Year-to-date used at quarter-end
in thousands of dollars
Vote 1 — Net operating expenditures 409,564 113,579 113,579
Statutory authority — Contribution to employee benefit plans 68,855 15,707 15,707
Total budgetary authorities 478,419 129,286 129,286
Tablenote 1

Includes only Authorities available for use and granted by Parliament at quarter-end.

Return to tablenote 1 referrer

Statement of Authorities (unaudited)
Fiscal year 2017-2018
Table summary: This table displays the departmental authorities for the fiscal year 2017-2018. 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 June 30; and year to date used at quarter-end for 2017-2018.
  Total available for use for the year ending March 31, 2018Tablenote 1 Used during the quarter ended June 30, 2017 Year-to-date used at quarter-end
in thousands of dollars
Vote 1 — Net operating expenditures 405,572 105,824 105,824
Statutory authority — Contribution to employee benefit plans 65,492 16,373 16,373
Total budgetary authorities 471,064 122,197 122,197
Tablenote 1

Includes only Authorities available for use and granted by Parliament at quarter-end.

Return to tablenote 1 referrer

Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2018-2019
Table summary: This table displays the departmental expenditures by standard object for the fiscal year 2018-2019. 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 2018-2019.
  Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended June 30, 2018 Year-to-date used at quarter-end
in thousands of dollars
Expenditures:
(01) Personnel 512,332 129,600 129,600
(02) Transportation and communications 16,557 2,369 2,369
(03) Information 7,198 933 933
(04) Professional and special services 29,945 4,941 4,941
(05) Rentals 12,207 4,468 4,468
(06) Repair and maintenance 1,241 128 128
(07) Utilities, materials and supplies 2,589 188 188
(08) Acquisition of land, buildings and works 172 7 7
(09) Acquisition of machinery and equipment 10,419 2,822 2,822
(10) Transfer payments 100 - -
(12) Other subsidies and payments 5,659 1,177 1,177
Total gross budgetary expenditures 598,419 146,633 146,633
Less revenues netted against expenditures:
Revenues 120,000 17,347 17,347
Total revenues netted against expenditures 120,000 17,347 17,347
Total net budgetary expenditures 478,419 129,286 129,286
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2017-2018
Table summary: TThis table displays the departmental expenditures by standard object for the fiscal year 2017-2018. 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 2017-2018.
  Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended June 30, 2017 Year-to-date used at quarter-end
in thousands of dollars
Expenditures:
(01) Personnel 482,636 125,928 125,928
(02) Transportation and communications 16,223 3,440 3,440
(03) Information 3,482 880 880
(04) Professional and special services 31,750 3,241 3,241
(05) Rentals 12,302 3,429 3,429
(06) Repair and maintenance 2,034 54 54
(07) Utilities, materials and supplies 2,808 259 259
(08) Acquisition of land, buildings and works - 2 2
(09) Acquisition of machinery and equipment 8,170 2,061 2,061
(10) Transfer payments 100 - -
(12) Other subsidies and payments 31,559 121 121
Total gross budgetary expenditures 591,064 139,415 139,415
Less revenues netted against expenditures:
Revenues 120,000 17,218 17,218
Total revenues netted against expenditures 120,000 17,218 17,218
Total net budgetary expenditures 471,064 122,197 122,197
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