Quarterly Financial Report for the quarter ended December 31, 2018

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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 of Canada Secretariat;
  • 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 decrease in resources available for the year, as well as actual expenditures for the quarter ended December 31.

Comparison of gross budgetary authorities and expenditures as of December 31, 2017 and December 31, 2018, in thousands of dollars
Description for Chart 1: Comparison of gross budgetary authorities and expenditures as of December 31, 2017, and December 31, 2018, in thousands of dollars

This bar graph shows Statistics Canada's budgetary authorities and expenditures, in thousands of dollars, as of December 31, 2017 and 2018:

  • As at December 31, 2017
    • Net budgetary authorities: $571,673
    • Vote netting authority: $120,000
    • Total authority: $691,673
    • Net expenditures for the period ending December 31: $412,612
    • Year-to-date revenues spent from vote netting authority for the period ending December 31: $56,552
    • Total expenditures: $469,164
  • As at December 31, 2018
    • Net budgetary authorities: $524,082
    • Vote netting authority: $120,000
    • Total authority: $644,082
    • Net expenditures for the period ending December 31: $390,990
    • Year-to-date revenues spent from vote netting authority for the period ending December 31: $60,963
    • Total expenditures: $451,953

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

Total authorities available for 2018–2019 have decreased by $47.6 million, or 6.9%, from the previous year, from $691.7 million to $644.1 million (Chart 1). This net decrease is mostly the result of the following:

  • A decrease for the 2016 Census of Population program ($37.0 million) and for the 2016 Census of Agriculture program ($2.9 million) due to the cyclical nature of funding that is winding down;
  • A decrease of $23.3 million for negotiated salary adjustments;
  • A decrease of $19.0 million for the Statistical Survey Operations pay equity settlement;
  • A decrease in the carry forward by $16.1 million;
  • An increase of $42.4 million for the 2021 Census of Population program and $4.6 million for the 2021 Census of Agriculture program for new cyclical funding received to cover planning and developmental activities;
  • An increase of $4.2 million for paylist allocations such as refundable salaries.

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 third quarter decreased by $21.6 million, or 5.2% from the previous year, from $412.6 million to $391.0 million (see Table A: Variation in Departmental Expenditures by Standard Object).

Statistics Canada spent approximately 74.6% of its authorities by the end of the third quarter, compared with 72.2% 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 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.
Departmental Expenditures Variation by Standard Object: Q3 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 -20,374 -4.9
(02) Transportation and communications -399 -3.5
(03) Information 922 26.8
(04) Professional and special services 5,963 43.9
(05) Rentals 958 10.0
(06) Repair and maintenance 73 46.8
(07) Utilities, materials and supplies 35 4.7
(08) Acquisition of land, buildings and works 295 121.5
(09) Acquisition of machinery and equipment -3,504 -61.3
(10) Transfer payments - -
(12) Other subsidies and payments -1,180 -20.4
Total gross budgetary expenditures -17,211 -3.7
Less revenues netted against expenditures:
Revenues 4,411 7.8
Total net budgetary expenditures -21,622 -5.2

Personnel: The decrease is mainly the result of the negotiated salary adjustments following the ratification of several collective agreements in 2017–2018 causing a temporary decrease in salary expenditures. This decrease is partly offset by the increase in expenditures of public servants for an increase in cost recovery and initiatives announced in Budget 2018.

Professional and special services: The increase is mainly due to additional external resources and consultants, various training activities for employees and to new software licences and contracts related to new initiatives.

Acquisition of machinery and equipment: The decrease is mainly due to a reduction in expenditures related to the workplace 2.0 project and to a timing difference in the payment of software maintenance and licences.

Other subsidies and payments: The decrease is mainly due to a timing difference of the non-salary payments related to the Statistical Survey Operations pay equity settlement.

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

The decrease is also explained by timing differences of payments at this period compared to last fiscal year.

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 provides to Canadians. As a foundation piece for some of these efforts, the agency is working in collaboration with Shared Services Canada and Treasury Board of Canada Secretariat, Office of the Chief Information Officer, to ensure the agency has access to adequate IT services and support to attain its modernization objectives. Activities and related costs 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 2016 cycle.
  • Budget 2018 announced funding for new initiatives. Expenditures related to these new initiatives have begun to ramp up and are expected to continue to do so throughout the fiscal year.

Approval by senior officials

Approved by:

Anil Arora, Chief Statistician
Monia Lahaie, Chief Financial Officer
Ottawa, Ontario
Signed on: February 27, 2019

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 December 31; 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 December 31, 2018 Year-to-date used at quarter-end
in thousands of dollars
Tablenote 1

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

Return to tablenote 1 referrer

Vote 1 — Net operating expenditures 453,837 104,847 343,869
Statutory authority — Contribution to employee benefit plans 70,245 15,707 47,121
Total budgetary authorities 524,082 120,554 390,990
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 December 31 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 December 31, 2017 Year-to-date used at quarter-end
in thousands of dollars
Tablenote 1

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

Return to tablenote 1 referrer

Vote 1 — Net operating expenditures 504,931 107,830 363,493
Statutory authority — Contribution to employee benefit plans 66,742 16,373 49,119
Total budgetary authorities 571,673 124,203 412,612
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 December 31; and year to date used at quarter-end 2018-2019.
  Planned expenditures for the year ending March 31, 2019 Expended during the quarter ended December 31, 2018 Year-to-date used at quarter-end
in thousands of dollars
Expenditures:
(01) Personnel 527,128 137,111 398,215
(02) Transportation and communications 21,798 4,692 10,947
(03) Information 10,911 1,782 4,361
(04) Professional and special services 36,128 9,314 19,558
(05) Rentals 15,325 865 10,505
(06) Repair and maintenance 1,601 65 230
(07) Utilities, materials and supplies 3,333 323 789
(08) Acquisition of land, buildings and works 223 392 538
(09) Acquisition of machinery and equipment 13,692 -1,647 2,215
(10) Transfer payments 100 -   -  
(12) Other subsidies and payments 13,843 1,546 4,595
Total gross budgetary expenditures 644,082 154,443 451,953
Less revenues netted against expenditures:
Revenues 120,000 33,889 60,963
Total revenues netted against expenditures 120,000 33,889 60,963
Total net budgetary expenditures 524,082 120,554 390,990
Departmental budgetary expenditures by Standard Object (unaudited)
Fiscal year 2017–2018
Table summary: This 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 December 31; and year to date used at quarter-end 2017-2018.
  Planned expenditures for the year ending March 31, 2018 Expended during the quarter ended December 31, 2017 Year-to-date used at quarter-end
in thousands of dollars
Expenditures:
(01) Personnel 536,699 136,648 418,589
(02) Transportation and communications 22,235 4,565 11,346
(03) Information 6,755 1,215 3,439
(04) Professional and special services 43,812 5,638 13,595
(05) Rentals 16,829 1,375 9,547
(06) Repair and maintenance 2,782 49 157
(07) Utilities, materials and supplies 3,931 279 754
(08) Acquisition of land, buildings and works - 199 243
(09) Acquisition of machinery and equipment 11,485 2,294 5,719
(10) Transfer payments 100 - -
(12) Other subsidies and payments 47,045 4,707 5,775
Total gross budgetary expenditures 691,673 156,969 469,164
Less revenues netted against expenditures:
Revenues 120,000 32,766 56,552
Total revenues netted against expenditures 120,000 32,766 56,552
Total net budgetary expenditures 571,673 124,203 412,612
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