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Elections Canada Quarterly Financial Report 2015–2016 – For the quarter ended December 31, 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) results

During the third quarter of 20152016, Elections Canada conducted the 42nd general election, called on August 2 for a polling day of October 19.

First three quarters year-over-year variance

In the first three quarters of 20152016, budgetary expenditures totalled $361.9 million, compared to $86.0 million in the same period of 20142015. The net increase of $275.9 million in expenditures (part of "Electoral expenditures" in Table A.1) is largely explained by the conduct of the 42nd general election.

Third quarter year-over-year variance

The 20152016 third quarter expenditures of $251.5 million were $218.4 million higher than the $33.1 million incurred in the same period in 2014-2015. The reasons for the net increase are largely explained by:

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

Figure 1

*Annual authorities for statutory funds reflect expenditures only for the first three quarters 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

During the third quarter, Elections Canada conducted the 42nd general election.

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
February 29, 2016

Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 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 December 31, 2014 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 31,484 6,772 21,757
Statutory authorities      
Electoral expendituresFootnote 3 59,181 24,684 59,181
Contributions to employee benefit plans 4,813 1,605 4,813
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

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 December 31, 2015 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,740 7,503 21,545
Statutory authorities      
Electoral expendituresFootnote 3 334,379 242,009 334,379
Contributions to employee benefit plans 5,786 1,929 5,786
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 1 1 1
Salary of Chief Electoral Officer 224 75 224
Total Statutory authorities 340,390 244,014 340,390
Total authorities 371,130 251,517 361,935

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 the first three quarters expenditures only since statutory authorities are granted as expenditures are incurred.

Footnote 2 Program expenditures is an annual appropriation that funds only the salaries of Elections Canada's permanent 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 with the Canada Elections Act.



Table A.2
Elections Canada
Quarterly financial report
For the quarter ended December 31, 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 Expended during the quarter ended December 31, 2014 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 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 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


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 Expended during the quarter ended December 31, 2015 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 211,086 136,135 201,891
Transportation and communications 37,637 32,768 37,637
Information 11,691 9,885 11,691
Professional and special services 25,580 13,483 25,580
Rentals 40,766 20,209 40,766
Repair and maintenance 636 513 636
Utilities, materials and supplies 9,266 5,755 9,266
Acquisition of land, buildings and works 51 33 51
Acquisition of machinery and equipment 863 454 863
Transfer payments 33,512 32,278 33,512
Public debt charges -   -   -  
Other subsidies and payments 42 4 42
Total gross budgetary expenditures 371,130 251,517 361,935
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 371,130 251,517 361,935

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.

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.