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

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

Erratum
Date: December 11, 2015
Location: Table A.2: Departmental budgetary expenditures by Standard Object
Revision: For the column “Planned expenditures for the year ended March 31, 2016” -
“Personnel” $82,448 replaces $99,139;
“Total gross budgetary expenditures” $127,108 replaces $143,799;
“Total net budgetary expenditures” $127,108 replaces $143,799.
Rationale for the revision: Original amount reported was not correct.

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) results

During the second quarter of 2015-2016, Elections Canada concluded its readiness activities and initiated the conduct of the 42nd general election called on August 2nd for a polling day of October 19th.

First two quarters year-over-year variance

In the first two quarters of 2015-2016, budgetary expenditures totalled $110.4 million compared to $52.9 million in the same period of 2014-2015. The net increase of $57.5 million is largely explained by the following:

Second quarter year-over-year variance

The 2015-2016 second quarter expenditures of $84.9 million were $55.2 million higher than the $29.7 million incurred in the first quarter. The reasons for the increase are the same as above.

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

Figure 1

*Annual authorities for statutory funds reflect expenditures only for the first and second 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 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 second 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
November 27, 2015

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

Statement of Authorities (unaudited)

Fiscal year 2014-2015 (in thousands of dollars)
  Total available for use for the year ending March 31, 2015Footnote 1 Used during the quarter ended September 30, 2014 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,538 6,446 14,985
Statutory authorities      
Electoral expendituresFootnote 3 34,496 21,583 34,496
Contributions to employee benefit plans 3,209 1,604 3,209
Expenditures under Electoral Boundaries Readjustment Act
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 1 1 1
Salary of Chief Electoral Officer 160 60 160
Total Statutory authorities 37,866 23,248 37,866
Total authorities 68,404 29,694 52,851

Statement of Authorities (unaudited) (continued)

Fiscal year 2015-2016 (in thousands of dollars)
  Total available for use for the year ending March 31, 2016Footnote 1 Used during the quarter ended September 30, 2015 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,732 6,999 14,041
Statutory authorities      
Electoral expendituresFootnote 3 92,371 75,870 92,371
Contributions to employee benefit plans 3,857 1,929 3,857
Expenditures under Electoral Boundaries Readjustment Act
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets
Salary of Chief Electoral Officer 148 63 148
Total Statutory authorities 96,376 77,862 96,376
Total authorities 127,108 84,861 110,417

More information is available in Table A.2

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

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

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 to the Canada Elections Act.



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

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2014-2015 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2015Footnote 1 Footnote 3 Expended during the quarter ended September 30, 2014 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 Footnot 3 42,323 13,531 26,770
Transportation and communications 2,201 1,592 2,201
Information 1,439 887 1,439
Professional and special services 12,221 8,640 12,221
Rentals 4,738 1,679 4,738
Repair and maintenance 224 170 224
Utilities, materials and supplies 376 182 376
Acquisition of land, buildings and works -   -   -  
Acquisition of machinery and equipment 849 607 849
Transfer payments 2,704 2,395 2,704
Public debt charges -   -   -  
Other subsidies and payments 1,329 11 1,329
Total gross budgetary expenditures 68,404 29,694 52,851
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 68,404 29,694 52,851


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

Fiscal year 2015-2016 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2016Footnote 1 Footnote 3 Expended during the quarter ended September 30, 2015 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 Footnote 3 82,448 50,982 65,757
Transportation and communications 4,869 3,693 4,869
Information 1,806 879 1,806
Professional and special services 12,097 8,178 12,097
Rentals 20,557 16,827 20,557
Repair and maintenance 123 112 123
Utilities, materials and supplies 3,511 3,397 3,511
Acquisition of land, buildings and works 17 17 17
Acquisition of machinery and equipment 409 135 409
Transfer payments 1,234 640 1,234
Public debt charges -   -   -  
Other subsidies and payments 37 1 37
Total gross budgetary expenditures 127,108 84,861 110,417
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 127,108 84,861 110,417

Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31" columns reflect expendituress for the two first quarters only since statutory authorities are granted as expenditures are incurred.

Footnote 2 Personnel expenditures include both Vote 1 – Program expenditures (see note 2 of Table A.1) and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.

Footnote 3 The Planned expenditures for the year ended March 31, 2016 have been updated to reflect an amount of $127,108 thousands. $16,691 thousands have been removed from the item Personnel.