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Elections Canada Quarterly Financial Report 2016–2017 – For the quarter ended June 30, 2016

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/rpp2016&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 2016-2017 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 first quarter of 2016-2017, Elections Canada continued to administer its post-electoral activities following the 42nd general election, held on October 19, 2015.

First quarter year-over-year variance

In the first quarter of 2016-2017, budgetary expenditures totalled $24.9 million, compared to $25.6 million in the same period of 2015-2016. The net decrease of $0.6 million is largely explained by the following:

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

Figure 1

Textual description of Figure 1

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

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 first quarter, Elections Canada continued to administer its post-electoral activities following the 42nd general election, held on October 19, 2015. On June 6, Marc Mayrand announced that he will be stepping down as Chief Electoral Officer on December 28, 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 29, 2016

Table A.1
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2016

Statement of Authorities (unaudited)

Fiscal year 2015-2016 (in thousands of dollars)
  Total available for use for the year ending March 31, 2016 Footnote 1 Used during the quarter ended June 30, 2015 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 29,205 7,043 7,043
Statutory authorities      
Electoral expendituresFootnote 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

Statement of Authorities (unaudited) (continued)

Fiscal year 2016-2017 (in thousands of dollars)
  Total available for use for the year ending March 31, 2017 Footnote 1 Used during the quarter ended June 30,  2016 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 29,213 6,975 6,975
Statutory authorities      
Electoral expendituresFootnote 3 16,108 16,108 16,108
Contributions to employee benefit plans 1,759 1,759 1,759
Salary of Chief Electoral Officer 107 107 107
Total Statutory authorities 17,974 17,974 17,974
Total authorities 47,187 24,949 24,949

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, 201x" columns reflect the 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 employees.

Footnote 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, 2016

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2015-2016 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2016 Footnote 1 Expended during the quarter ended June, 30, 2015 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 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


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

Fiscal year 2016-2017 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2017 Footnote 1 Expended during the quarter ended June 30, 2016 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 35,949 13,711 13,711
Transportation and communications 959 959 959
Information 133 133 133
Professional and special services 3,993 3,993 3,993
Rentals 1,882 1,882 1,882
Repair and maintenance 19 19 19
Utilities, materials and supplies 113 113 113
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 37 37 37
Transfer payments 4,088 4,088 4,088
Public debt charges -   -   -  
Other subsidies and payments 14 14 14
Total gross budgetary expenditures 47,187 24,949 24,949
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 47,187 24,949 24,949

Footnote 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.

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