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Elections Canada Quarterly Financial Report 2016–2017
For the quarter ended September 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 second quarter of 2016–2017, Elections Canada initiated a process for asset renewal and the modernization of electoral services.

First two quarters year-over-year variance

In the first two quarters of 2016–2017, budgetary expenditures totalled $46.4 million compared to $110.4 million in the same period of 2015–2016. The net decrease of $64.0 million is largely explained by a decrease of $63.5 million in Electoral expenditures (see Table A.1), which is resulting from a $64.5 million reduction in expenditures associated with the October 2015 general election and an increase of $1.0 million resulting from expenditures associated with asset renewal and modernization of electoral services.

Second quarter year-over-year variance

In the second quarter of 2016–2017, expenditures totalled $21.4 million compared to $84.9 million in the same quarter of 2015–2016. The net decrease of $63.5 million is explained by the same reasons as above.

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

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

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

*Annual authorities for statutory funds reflect expenditures only for the first two quarters since statutory authorities are granted as expenditures are incurred. Totals may not match due to rounding, please refer to Tables A.1 and A.2 for details.

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

The following appointments have been made during the second quarter:

Approval by senior officials

Original signed by

Marc Mayrand
Chief Electoral Officer of Canada

Original signed by

Hughes St-Pierre, CPA, CMA
Chief Financial Officer


Gatineau, Canada
November 29, 2016

Table A.1
Elections Canada
Quarterly financial report
For the quarter ended (September 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 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
Salary of the Chief Officer 148 63 148
Total Statutory authorities 96,376 77,862 96,376
Total authorities 127,108 84,861 110,417

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 September 30,  2016 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,673 6,558 13,533
Statutory authorities      
Electoral expendituresFootnote 3 29,169 13,061 29,169
Contributions to employee benefit plans 3,518 1,759 3,518
Salary of the Chief Officer 168 61 168
Total Statutory authorities 32,855 14,881 32,855
Total authorities 63,528 21,439 46,388

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 two quarters 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 Electoral expenditures under the statutory authority funds the operating expenditures of the agency and expenditures incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance of the Canada Elections Act.



Table A.2
Elections Canada
Quarterly financial report
For the quarter ended September 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 September 30, 2015 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 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


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 September 30, 2016 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 43,566 12,715 26,426
Transportation and communications 2,026 1,067 2,026
Information 386 253 386
Professional and special services 9,840 5,847 9,840
Rentals 4,595 2,713 4,595
Repair and maintenance 2 (17) 2
Utilities, materials and supplies 119 6 119
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 324 287 324
Transfer payments 2,626 (1,462) 2,626
Public debt charges -   -   -  
Other subsidies and payments 44 30 44
Total gross budgetary expenditures 63,528 21,439 46,388
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 63,528 21,439 46,388

Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first two quarters 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.