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Elections Canada Quarterly Financial Report 2016–2017
For the quarter ended December 31, 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 third quarter of 2016-2017, Elections Canada continued its process for asset renewal and electoral services modernization.

First three quarters year-over-year variance

In the first three quarters of 2016-2017, budgetary expenditures totalled $68.4 million compared to $361.9 million in the same period of 2015-2016. The net decrease of $293.5 million is largely explained by the expenditures to conduct the October 2015 general election which is part of Electoral expenditures (see Table A.1). There is also a $1.1 million reduction in Vote 1 - Program expenditures resulting mainly from vacancies in indeterminate positions.

Third quarter year-over-year variance

In the third quarter of 2016-2017, expenditures totalled $22.0 million compared to $251.5 million in the same quarter of 2015-2016. The net decrease of $229.5 is largely explained by the same reasons as above.

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

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

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

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

Public Services and Procurement Canada (PSPC) is in the process of implementing a new pay system as part of the pay transformation initiative. The implementation of Phoenix is a major undertaking which is facing challenges. PSPC is leading a significant effort to address the issues, and seeing progress as it continues to work closely with all departments and agencies. Despite these efforts, there are unrecorded transactions related to the pay system which are not reflected in the expenditure to date for the period covered.

Significant changes in relation to operations, personnel and programs

As previously announced, Marc Mayrand stepped down as Chief Electoral Officer (CEO) on December 28, 2016. Stéphane Perrault, Deputy Chief Electoral Officer, Regulatory Affairs, will also be acting until a new CEO is appointed by the House of Commons.

Approval by senior officials

Original signed by

Stéphane Perrault
Acting Chief Electoral Officer
Gatineau, Canada
March 1, 2017

Original signed by

Hughes St-Pierre, CPA, CMA
Chief Financial Officer


Table A.1
Elections Canada
Quarterly financial report
For the quarter ended (December 31, 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 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
Salary of the Chief Electoral Officer 224 75 224
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 1 1 1
Total Statutory authorities 340,390 244,014 340,390
Total authorities 371,130 251,517 361,935

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 December 31,  2016 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,714 6,886 20,419
Statutory authorities      
Electoral expendituresFootnote 3 42,491 13,322 42,491
Contributions to employee benefit plans 5,277 1,759 5,277
Salary of the Chief Electoral Officer 233 65 233
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets - - -
Total Statutory authorities 48,001 15,146 48,001
Total authorities 78,715 22,032 68,420

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 three 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 Under the Statutory authority, Electoral expenditures fund 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 December 31, 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 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


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 December 31, 2016 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 49,573 12,852 39,278
Transportation and communications 3,319 1,293 3,319
Information 729 343 729
Professional and special services 15,009 5,169 15,009
Rentals 6,404 1,809 6,404
Repair and maintenance 22 20 22
Utilities, materials and supplies 263 144 263
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 471 147 471
Transfer payments 2,702 76 2,702
Public debt charges -   -   -  
Other subsidies and payments 223 179 223
Total gross budgetary expenditures 78,715 22,032 68,420
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 78,715 22,032 68,420

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