Site MenuElections Canada Quarterly Financial Report 2013–2014 – For the quarter ended June 30, 2013
Statement outlining results, risks and significant changes in operations, personnel and program
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 as well as Canada's Economic Action Plan 2012 (Budget 2012). 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:
- be prepared to conduct a federal general election, by-election or referendum
- administer the political financing provisions of the Canada Elections Act
- monitor compliance with and enforce electoral legislation
- carry out investigations into allegations that would amount to offences under the Act
- conduct voter education and information programs
- provide support to the independent commissions in charge of adjusting the boundaries of federal electoral districts following each decennial census
- carry out studies on alternative voting methods and, with the approval of parliamentarians, test online voting processes for future use during electoral events
A summary description of the agency’s programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/rpp2013&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 includes the agency's spending authorities granted by Parliament and those used by the agency consistent with the Main Estimates for the 2013–2014 fiscal year as well as Canada's Economic Action Plan 2012 (Budget 2012). 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 moneys 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. Budgetary statutory authorities amounts presented in the tables below reflect year-to-date expenditures only 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 departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, 2012, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012–13 Main Estimates.
In fiscal year 2012–2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013–2014, the changes to departmental authorities were reflected in the 2013–2014 Main Estimates tabled in Parliament.
Highlights of fiscal quarter and fiscal year-to-date (YTD) results
During the first quarter of 2013–2014, Elections Canada conducted a by-election in the electoral district of Labrador, and it continued to provide administrative and technical support to the commissions in charge of readjusting federal electoral boundaries.
First quarter year-over-year variance
In the first quarter of 2013–2014, budgetary expenditures totalled $24.2 million, compared to $19.0 million in the same period of 2012–2013. (See Figure 1.) The increase of $5.2 million is mainly a result of the timing of the disbursements of the quarterly allowances to political parties (first quarter payment recorded in the second quarter of 2012–2013).
Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
*Annual authorities for statutory funds reflect expenditures for the first quarter only since statutory authorities are granted as expenditures are incurred.
Click here for a textual description of Figure 1.
Risks and uncertainties
Risks resulting from the cost-containment measures flowing from the March 2010 federal budget added budgetary pressures to Elections Canada's appropriation. To address these pressures, the agency completed a zero-based budgeting review in 2012–2013 and, as a result, reallocated resources to its highest priorities. It also implemented workforce adjustment measures to eliminate 32 encumbered indeterminate positions. These measures aimed to ensure that Elections Canada can manage within its annual appropriation for the foreseeable future.
Elections Canada's overall statutory expenditures are guided by the preparations required for the 2015 general election. The work flowing from the two recently published reports to strengthen the integrity of the electoral system and its administration will lead to additional expenditures. In this regard, an important driver will be the introduction of electoral reform by the government, which we expect will require the agency to review its operating budget, including its appropriation, in future years.
Elections Canada's expenditures are influenced by the frequency and number of electoral events (general elections, by-elections) and by infrequent exercises such as referendums and the electoral district boundaries readjustment process. Any of these events could significantly change expenditures from one fiscal year to the next.
Significant changes in relation to operations, personnel and programs
As mentioned above, Elections Canada implemented workforce adjustment measures to eliminate 32 indeterminate positions. Throughout this process, the agency's top priority was to limit the impact of these measures by maximizing continued employment opportunities for affected employees.
Effective April 1, 2013, the position of the Chief Audit Executive and the Internal Audit function were transferred from the CFO Sector to the Chief of Staff of the Chief Electoral Officer, Ms. Vivian Cousineau.
Effective June 27, 2013, Mr. Hughes St-Pierre was appointed acting Chief Financial Officer following the departure of Ms. Helen Bélanger to another government department.
Elections Canada conducted a by-election in Labrador (Newfoundland and Labrador). The writ of election was issued on April 7, 2013, and Election Day was May 13, 2013.
Budget 2012 implementation
This section provides an overview of the savings measures announced in Budget 2012 that will be implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and, modernize and reduce the back office.
Elections Canada has responded to the spirit of the federal governmen's deficit reduction action plan. The agency has reduced its annual operating budget by $7.5 million, or 8 percent, starting in 2012–2013. In making these reductions, the agency has not included expenditures that fall outside its annual operating budget – namely, those related to transfer payments required by statute, the delivery of electoral events, the readjustment of electoral boundaries and the relocation of Elections Canada's office to Gatineau this fiscal year. As the reductions are applied only to the agency's operating budget, reductions in authorities and expenditures are not readily apparent when comparing year over year for these reasons: fluctuations of non-operating expenditures (as mentioned above), timing differences and expenditure trends related to the general election cycle (Year 1 versus Year 3).
Elections Canada has applied the budget reductions as follows:
The agency has reduced the budget available to programs for time-limited initiatives. This has reduced the financial resources available for renewing infrastructure and carrying out initiatives aimed at improving election administration and programs. Some examples of initiatives that have been delayed or postponed include the modernization of nomination processes for candidates, the advertising program aimed at youth and readiness activities for referendums.
The agency has also extended the time frame for the development and delivery of various other programs and corporate initiatives.
In addition, the agency has required programs to take a variety of measures to achieve efficiencies and absorb maintenance costs for recently delivered information technology (IT) applications. This has allowed the agency to reduce hardware and software maintenance costs – for example, by reviewing service agreements, optimizing resources by restructuring IT support and reducing support costs by establishing a new IT service model.
Approval by senior officials
Marc Mayrand
Chief Electoral Officer of Canada
Hughes St-Pierre, MA, CMA
Acting Chief Financial Officer
Ottawa, Canada
August 29, 2013
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2013
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2013 1, 2 | Used during the quarter ended June 30, 2012 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 15 – Program expenditures 3 | 29,501 | 6,917 | 6,917 |
| Statutory authorities | |||
| Electoral expenditures 4 | 9,487 | 9,487 | 9,487 |
| Contributions to employee benefit plans | 1,298 | 1,298 | 1,298 |
| Expenses under Electoral Boundaries Reajustment Act | 1,199 | 1,199 | 1,199 |
| Salary of Chief Electoral Officer | 72 | 72 | 72 |
| Total Statutory authorities | 12,056 | 12,056 | 12,056 |
| Total authorities | 41,557 | 18,973 | 18,973 |
Statement of Authorities (unaudited) (continued)
| Total available for use for the year ending March 31, 2014 1 | Used during the quarter ended June 30, 2013 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 15 – Program expenditures 3 | 30,081 | 7,242 | 7,242 |
| Statutory authorities | |||
| Electoral expenditures 4 | 15,355 | 15,355 | 15,355 |
| Contributions to employee benefit plans | 1,104 | 1,104 | 1,104 |
| Expenses under Electoral Boundaries Reajustment Act | 384 | 384 | 384 |
| Salary of Chief Electoral Officer | 74 | 74 | 74 |
| Total Statutory authorities | 16,917 | 16,917 | 16,917 |
| Total authorities | 46,998 | 24,159 | 24,159 |
More information is available in Table A.2
1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect first quarter expenditures only since statutory authorities are granted as expenditures are incurred.
2 Total available for use does not reflect measures announced in Budget 2012.
3 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's permanent staff.
4 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 enforcing the Canada Elections Act.
Table A.2
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2013
Departmental budgetary expenditures by Standard Object (unaudited)
| Planned expenditures for the year ending March 31, 2013 1, 2 | Expended during the quarter ended June 30, 2012 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| Personnel 3 | 33,598 | 11,014 | 11,014 |
| Transportation and communications | 427 | 427 | 427 |
| Information | 296 | 296 | 296 |
| Professional and special services | 2,600 | 2,600 | 2,600 |
| Rentals | 712 | 712 | 712 |
| Repair and maintenance | 1,803 | 1,803 | 1,803 |
| Utilities, materials and supplies | 70 | 70 | 70 |
| Acquisition of land, buildings and works | 6 | 6 | 6 |
| Acquisition of machinery and equipment | 86 | 86 | 86 |
| Transfer payments | 1,959 | 1,959 | 1,959 |
| Public debt charges | - | - | - |
| Other subsidies and payments | - | - | - |
| Total gross budgetary expenditures | 41,557 | 18,973 | 18,973 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 41,557 | 18,973 | 18,973 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
| Planned expenditures for the year ending March 31, 2014 1 | Expended during the quarter ended June 30, 2013 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| Personnel 3 | 33,814 | 10,975 | 10,975 |
| Transportation and communications | 452 | 452 | 452 |
| Information | 181 | 181 | 181 |
| Professional and special services | 3,326 | 3,326 | 3,326 |
| Rentals | 279 | 279 | 279 |
| Repair and maintenance | 2,403 | 2,403 | 2,403 |
| Utilities, materials and supplies | 92 | 92 | 92 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 80 | 80 | 80 |
| Transfer payments | 6,368 | 6,368 | 6,368 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 3 | 3 | 3 |
| Total gross budgetary expenditures | 46,998 | 24,159 | 24,159 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 46,998 | 24,159 | 24,159 |
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.
2 Planned expenditures do not reflect measures announced in Budget 2012.
3 Personnel expenditures include both Vote 15 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.