Elections Canada Quarterly Financial Report 2014–2015 – For the quarter ended December 31, 2014
Statement outlining results, risks and significant
changes in operations, personnel and programs
Introduction
This quarterly financial report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This quarterly report should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review.
The Office of the Chief Electoral Officer, commonly known as Elections Canada, is an independent, non-partisan agency that reports directly to Parliament. Its mandate is to:
- be prepared to conduct a federal general election, by-election or referendum
- administer the political financing provisions of the Canada Elections Act
- monitor compliance with electoral legislation
- conduct public information campaigns on voter registration, voting and becoming a candidate
- conduct education programs for students on the electoral process
- provide support to the independent commissions in charge of adjusting the boundaries of federal electoral districts following each decennial census
- carry out studies on alternative voting methods and, with the approval of parliamentarians, test alternative voting processes for future use during electoral events
- provide assistance and co-operation in electoral matters to electoral agencies in other countries or to international organizations
A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/rpp2014&document=p2&lang=e#p2_00.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities (see Table A.1 below) includes the agency's spending authorities granted by Parliament and those used by the agency that are consistent with the Main Estimates for the 2014–2015 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 monies 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. With respect to Elections Canada, the Canada Elections Act, the Electoral Boundaries Readjustment Act and the Referendum Act provide for all expenditures, with the exception of salaries of indeterminate employees, which are funded through an annual appropriation. The budgetary statutory authorities amounts presented in the tables below reflect only year-to-date expenditures since statutory authorities are granted as expenditures are incurred.
When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.
Elections Canada uses the full accrual method of accounting to prepare and present its annual audited financial statements, which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of fiscal quarter and fiscal year-to-date (YTD) results
During the third quarter of 2014–2015, Elections Canada continued its readiness activities for 2015, implemented changes required by Bill C-23 (the Fair Elections Act), and it continued its efforts to improve services to electors, such as modernizing the voter registration system, renewing the Electoral Reminder Program and improving accessibility for electors with disabilities.
First three quarters year-over-year variance
In the first three quarters of 2014–2015, budgetary expenditures totalled $86.0 million compared to $77.2 million in the same period of 2013–2014. (See Figure 1.) The net increase of $8.8 million is largely explained by the following:
- a $10.8 million increase in expenditures (part of "Electoral expenditures" in Table A.1), mainly resulting from electoral readiness activities for the 42nd general election, including implementing the Fair Elections Act, and conducting four by–elections in June 2014 and two in November 2014
- a $1.0 million reduction in expenditures (part of "Program expenditures" in Table A.1), largely resulting from one-time expenditures associated with the Workforce Adjustment Directive incurred in the previous fiscal year (2013–2014) and the related smaller permanent workforce
- a $1.0 million reduction in expenditures (part of "Expenditures under Electoral Boundaries Readjustment Act" in Table A.1) since the activities associated with the redistribution of electoral district boundaries were concluded in 2013–2014
2014–2015 second and third quarter variance
The 2014–2015 third-quarter expenditures of $33.1 million were $3.4 million higher than the $29.7 million spent in the second quarter. This variance is largely due to an increase in expenditures (part of "Electoral expenditures" in Table A.1), mainly resulting from electoral readiness activities for the 42nd general election, including implementing the Fair Elections Act.
Figure 1 – First, Second and Third Quarter Expenditures Compared to Annual Authorities(Appropriation and Statutory Authority)*
*Annual authorities for statutory funds reflect expenditures only for the first three quarters since statutory authorities are granted as expenditures are incurred.
Textual description of Figure 1
Risks and uncertainties
Elections Canada's overall statutory expenditures are guided by the preparations required for the 2015 general election. The work to strengthen the integrity of the electoral system and its administration will lead to additional expenditures. In this regard, an important driver is the government's recent enactment of electoral reform, which impacts the budget for the next general election. Furthermore, at the time of preparing this report, Bill C-50, An Act to amend the Canada Elections Act, was before Parliament. Elections Canada is reviewing the new legislation and its impacts on its operations and expenditures.
Elections Canada's expenditures are influenced by the frequency and number of electoral events (general elections and by-elections) and by infrequent exercises such as referendums and the electoral district boundaries readjustment process. Any of these events can significantly change expenditures from one fiscal year to the next.
Significant changes in relation to operations, personnel and programs
Bill C-23, which received royal assent on June 19, 2014, will bring significant changes to Elections Canada's mandate and operations. Notably, effective October 1, 2014, the Commissioner of Canada Elections, the independent officer whose duty is to ensure that the Canada Elections Act and the Referendum Act are complied with and enforced, has been transferred to the Office of the Director of Public Prosecutions (ODPP). Appropriated funds were transferred to the ODPP for the salary of the Commissioner's indeterminate staff.
Budget 2012 implementation
This section provides an overview of the savings measures announced in Budget 2012 that are being implemented in order to refocus government and programs, to make it easier for Canadians and business to deal with their government and to modernize and reduce the back office.
Elections Canada has responded to the spirit of the federal government's Deficit Reduction Action Plan. The agency has reduced its annual operating budget by $7.5 million, or 8 percent, starting in 2012–2013. In making these reductions, the agency has not included expenditures that fall outside its annual operating budget – namely, those related to transfer payments required by statute, the delivery of electoral events, the readjustment of electoral boundaries and the relocation of Elections Canada's offices to Gatineau. As the reductions are applied only to the agency's operating budget, reductions in authorities and expenditures are not readily apparent when compared year over year as a result of fluctuations in non-operating expenditures, timing differences and expenditure trends related to the four-year election cycle.
Elections Canada has applied the budget reductions as follows:
- The agency has reduced the budget available to programs for time-limited initiatives. Some examples of initiatives that have been delayed or postponed include the modernization of nomination processes for candidates, the advertising program aimed at youth and readiness activities for referendums.
- The agency has also extended the time frame for the development and delivery of various other programs and corporate initiatives.
Approval by senior officials
Marc Mayrand
Chief Electoral Officer of Canada
Hughes St-Pierre, CPA, CMA
Chief Financial and Planning Officer
Gatineau, Canada
February 27, 2015
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2014
Statement of Authorities (unaudited)
Total available for use for the year ending March 31, 2014 Footnote 1 | Used during the quarter ended December 31, 2013 | Year to date used at quarter-end | |
---|---|---|---|
Vote 15 – Program expenditures Footnote 2 | 31,556 | 7,491 | 22,735 |
Statutory authorities | |||
Electoral expenditures Footnote 3 | 48,290 | 24,306 | 48,290 |
Contributions to employee benefit plans | 4,969 | 1,656 | 4,969 |
Expenditures under Electoral Boundaries Reajustment Act | 981 | 239 | 981 |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 4 | 2 | 4 |
Salary of Chief Electoral Officer | 224 | 76 | 224 |
Total statutory authorities | 54,468 | 26,279 | 54,468 |
Total authorities | 86,024 | 33,770 | 77,203 |
Statement of Authorities (unaudited) (continued)
Total available for use for the year ending March 31, 2015 Footnote 1 | Used during the quarter ended December 31, 2014 |
Year to date used at quarter-end | |
---|---|---|---|
Vote 15 – Program expenditures Footnote 2 | 31,484 | 6,772 | 21,757 |
Statutory authorities | |||
Electoral expenditures Footnote 3 | 59,181 | 24,684 | 59,181 |
Contributions to employee benefit plans | 4,813 | 1,605 | 4,813 |
Expenses under Electoral Boundaries Reajustment Act | - | - | - |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 1 | - | 1 |
Salary of Chief Electoral Officer | 235 | 75 | 235 |
Total statutory authorities | 64,230 | 26,364 | 64,230 |
Total authorities | 95,714 | 33,136 | 85,987 |
More information is available in Table A.2
Due to rounding, figures may not add to the totals shown.
Return to source of Footnote 1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31" columns reflect the first three quarter expenditures only since statutory authorities are granted as expenditures are incurred.
Return to source of Footnote 2 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's permanent staff.
Return to source of Footnote 3 Electoral expenditures under the statutory authority funds the operating expenditures of the agency and the additional expenditures incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance with the Canada Elections Act.
Table A.2
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2014
Departmental Budgetary Expenditures by Standard Object (unaudited)
Planned expenditures for the year ending March 31, 2014 Footnote 1 | Expended during the quarter ended December 31, 2013 | Year to date used at quarter-end | |
---|---|---|---|
Expenditures | |||
Personnel Footnote 2 | 45,995 | 13,493 | 37,174 |
Transportation and communications | 2,037 | 1,054 | 2,037 |
Information | 1,846 | 1,234 | 1,846 |
Professional and special services | 15,563 | 6,388 | 15,563 |
Rentals | 4,649 | 3,198 | 4,649 |
Repair and maintenance | 5,838 | 3,171 | 5,838 |
Utilities, materials and supplies | 271 | 152 | 271 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 701 | 390 | 701 |
Transfer payments | 8,369 | 3,940 | 8,369 |
Public debt charges | - | - | - |
Other subsidies and payments Footnote 3 | 755 | 750 | 755 |
Total gross budgetary expenditures | 86,024 | 33,770 | 77,203 |
Less Revenues netted against expenditures | |||
Revenues | - | - | - |
Total Revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 86,024 | 33,770 | 77,203 |
Departmental Budgetary Expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 2015 Footnote 1 | Expended during the quarter ended December 31, 2014 | Year to date used at quarter-end | |
---|---|---|---|
Expenditures | |||
Personnel Footnote 2 | 51,484 | 14,987 | 41,757 |
Transportation and communications | 3,648 | 1,447 | 3,648 |
Information | 4,156 | 2,718 | 4,156 |
Professional and special services | 21,235 | 9,015 | 21,235 |
Rentals | 6,506 | 1,768 | 6,506 |
Repair and maintenance | 394 | 169 | 394 |
Utilities, materials and supplies | 789 | 413 | 789 |
Acquisition of land, buildings and works | 40 | 40 | 40 |
Acquisition of machinery and equipment | 1,418 | 569 | 1,418 |
Transfer payments | 4,694 | 1,990 | 4,694 |
Public debt charges | - | - | - |
Other subsidies and payments Footnote 3 | 1,350 | 20 | 1,350 |
Total gross budgetary expenditures | 95,714 | 33,136 | 85,987 |
Less Revenues netted against expenditures | |||
Revenues | - | - | - |
Total Revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 95,714 | 33,136 | 85,987 |
Due to rounding, figures may not add to the totals shown
Return to source of Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31" columns reflect expenditures for the first three quarters only since statutory authorities are granted as expenditures are incurred.
Return to source of Footnote 2 Personnel expenditures include both Vote 15 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.
Return to source of Footnote 3 2014–2015 Year to date used at quarter and includes a one-time transition payment of $1.3M to implement the government's policy on salary payment in arrears.