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Elections Canada Quarterly Financial Report 2017–2018
For the quarter ended September 30, 2017

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/dp2017&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 2017-2018 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 financial statements that are part of the departmental results 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 two quarters of 2017-2018, Elections Canada conducted five by-elections and continued its process for asset renewal and electoral services modernization.

First two quarters year-over-year variance

In the first two quarters of 2017-2018, budgetary expenditures totalled $55.8 million compared to $46.4 million in the same period of 2016-2017. The net increase of $9.4 million is explained by:

Second quarter year-over-year variance

In the second quarter of 2017-2018, budgetary expenditures totalled $31.5 million compared to $21.4 million in the same period of 2016-2017. The net increase of $10.1 million is explained by:

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. 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) has implemented a new pay system as part of the pay transformation initiative. The implementation of Phoenix was a major undertaking and is facing challenges. PSPC continues to lead a significant effort to address the issues, and to see progress as it works 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

No significant changes in relation to operations, personnel or programs occurred during the second quarter of 2017-2018.

Approval by senior officials

Stéphane Perrault
Acting Chief Electoral Officer

Gatineau, Canada
November 29, 2017

Hughes St-Pierre, CPA, CMA
Chief Financial Officer


Table A.1
Elections Canada
Quarterly financial report
For the quarter ended September 30, 2017

Statement of Authorities (unaudited)

Fiscal year 2016–2017 (in thousands of dollars)
  Total available for use for the year ending March 31, 2017Footnote 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 Electoral Officer 168 61 168
Total Statutory authorities 32,855 14,881 32,855
Total authorities 63,528 21,439 46,388

Statement of Authorities (unaudited) (continued)

Fiscal year 2017–2018 (in thousands of dollars)
  Total available for use for the year ending March 31, 2018Footnote 1 Used during the quarter ended September 30,  2017 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,714 8,849 16,127
Statutory authorities      
Electoral expendituresFootnote 3 36,294 21,007 36,294
Contributions to employee benefit plans 3,393 1,697 3,393
Salary of the Chief Electoral Officer - - -
Total Statutory authorities 39,687 22,704 39,687
Total authorities 70,401 31,553 55,814

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 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 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 September 30, 2017

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2016–2017 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2017Footnote 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


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

Fiscal year 2017–2018 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2018Footnote 1 Expended during the quarter ended September 30, 2017 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 46,639 16,862 32,052
Transportation and communications 2,106 1,255 2,106
Information 1,017 543 1,017
Professional and special services 11,427 7,443 11,427
Rentals 6,148 2,914 6,148
Repair and maintenance 65 (86) 65
Utilities, materials and supplies 636 24 636
Acquisition of land, buildings and works 4 - 4
Acquisition of machinery and equipment 594 335 594
Transfer payments 1,728 2,249 1,728
Public debt charges - - -
Other subsidies and payments 37 14 37
Total gross budgetary expenditures 70,401 31,553 55,814
Less Revenues netted against expenditures:
Revenues - - -
Total Revenues netted against expenditures: - - -
Total net budgetary expenditures 70,401 31,553 55,814

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.