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Elections Canada Quarterly Financial Report 2015–2016 – For the quarter ended June 30, 2015

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:

A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/rpp2015&document=p2&lang=e.

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 2015-2016 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) result

During the first quarter of 2015-2016, Elections Canada concluded its full readiness activities for the 2015 general election. The agency also initiated the conduct of by-elections called by law on May 3, 2015 for October 19, 2015, in Ottawa West–Nepean, Peterborough and Sudbury. These by-elections have been superseded by the general election, which was called on August 2, 2015 for October 19, 2015.

First quarter year-over-year variance

In the first quarter of 2015-2016, budgetary expenditures totalled $25.6 million compared to $23.2 million in the same period of 2014-2015. (See Figure 1.) The net increase of $2.4 million is largely explained by the following:

Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)*

Figure 1

*Annual authorities for statutory funds reflect expenditures only for the first quarter since statutory authorities are granted as expenditures are incurred.

Click here for a 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 led to additional expenditures. In this regard, an important driver is the government's recent enactment of electoral reform, which impacts the budget for the general election.

Elections Canada's expenditures are influenced by the frequency, length 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

No significant changes in relation to operations, personnel or programs occurred during the first quarter of 2015-2016.

Approval by senior officials

Original signed by

Marc Mayrand
Chief Electoral Officer of Canada

Original signed by

Hughes St-Pierre, CPA, CMA
Chief Financial and Planning Officer


Gatineau, Canada
August 28, 2015

Table A.1
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2015

Statement of Authorities (unaudited)

Fiscal year 2014-2015 (in thousands of dollars)
  Total available for use for the year ending March 31, 20151 Used during the quarter ended June 30, 2014 Year to date used at quarter-end
Vote 1 – Program expenditures 2 30,538 8,539 8,539
Statutory authorities      
Electoral expenditures 3 12,914 12,914 12,914
Contributions to employee benefit plans 1,604 1,604 1,604
Salary of Chief Electoral Officer 100 100 100
Total Statutory authorities 14,618 14,618 14,618
Total authorities 45,156 23,157 23,157

Statement of Authorities (unaudited) (continued)

Fiscal year 2015-2016 (in thousands of dollars)
  Total available for use for the year ending March 31, 20161 Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Vote 1 – Program expenditures2 29,205 7,043 7,043
Statutory authorities      
Electoral expenditures 3 16,500 16,500 16,500
Contributions to employee benefit plans 1,929 1,929 1,929
Salary of Chief Electoral Officer 85 85 85
Total Statutory authorities 18,514 18,514 18,514
Total authorities 47,719 25,557 25,557

More information is available in Table A.2

1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect first quarter expenditures only since statutory authorities are granted as expenditures are incurred.

2 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's indeterminate emplouees.

3 Under the Statutory authority, Electoral expenditures funds the operating expenditures of the agency and those incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance to the Canada Elections Act.



Table A.2
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2015

Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 2014-2015 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 20151 Expended during the quarter ended June 30, 2014 Year to date used at quarter-end
Expenditures:
Personnel2 35,238 13,239 13,239
Transportation and communications 610 610 610
Information 552 552 552
Professional and special services 3,580 3,580 3,580
Rentals 3,058 3,058 3,058
Repair and maintenance 55 55 55
Utilities, materials and supplies 194 194 194
Acquisition of land, buildings and works -   -   -  
Acquisition of machinery and equipment 242 242 242
Transfer payments 309 309 309
Public debt charges -   -   -  
Other subsidies and payments 1,318 1,318 1,318
Total gross budgetary expenditures 45,156 23,157 23,157
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 45,156 23,157 23,157


Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 2015-2016 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 20161 Expended during the quarter ended June 30, 2015 Year to date used at quarter-end
Expenditures:
Personnel2 36,937 14,775 14,775
Transportation and communications 1,176 1,176 1,176
Information 927 927 927
Professional and special services 3,919 3,919 3,919
Rentals 3,730 3,730 3,730
Repair and maintenance 10 10 10
Utilities, materials and supplies 114 114 114
Acquisition of land, buildings and works -   -   -  
Acquisition of machinery and equipment 274 274 274
Transfer payments 595 595 595
Public debt charges -   -   -  
Other subsidies and payments 37 37 37
Total gross budgetary expenditures 47,719 25,557 25,557
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 47,719 25,557 25,557

1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first quarter expenditures only since statutory authorities are granted as expenditures are incurred.

2 Personnel expenditures include both Vote 1 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.