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Office of the Chief Electoral Officer
Quarterly Financial Report 2019–2020
For the quarter ended June 30, 2019

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 financial report should be read in conjunction with the Main Estimates. This quarterly financial report has not been subject to an external audit or review.

This quarterly report addresses the financial reporting requirements of both Elections Canada (EC) and the Commissioner of Canada Elections (CCE), referred to hereafter as the Office of the Chief Electoral Officer (OCEO). For more information, see the Significant changes in relation to operations, personnel and programs section.

A summary description of the agency's programs can be found at http://www.elections.ca/content.aspx?section=res&dir=rep/rpp/dp2019&document=p2&lang=e.

Basis of presentation

This quarterly financial 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 2019-2020 fiscal year. This quarterly financial 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 the OCEO, 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.

The OCEO 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 results

During the first quarter of 2019–2020, the agency conducted a by-election in Nanaimo–Ladysmith (British Columbia) and focused on its preparatory activities for the 2019 general election.

First quarter year-over-year variance

In the first quarter of 2019–2020, budgetary expenditures totalled $39.0 million compared to $29.2 million in the same period of 2018–2019. The net increase of
$9.8 million is explained by:

  • a net increase of $8.8 million in electoral expenditures and employee benefit plans (see Table A.1), which is largely explained by a $10.3 million increase in expenditures for preparatory activities for the 2019 general election, a $0.8 million increase due to a timing difference in the payment of office rent, and a decrease of $2.3 million on investments in asset renewal and modernization of electoral services, as most projects have been completed in the last fiscal year; and
  • an increase of $1.0 million in program expenditures (see Table A.1), mainly as a result of the salaries of employees hired to fill vacant positions.
Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
Text version of "Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)"

*Annual authorities for statutory funds reflect expenditures only for the first quarter, since statutory authorities are granted as expenditures are incurred. Please refer to Tables A.1 and A.2 for details.

Risks and uncertainties

The OCEO'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.

The OCEO is continually updating its corporate risk framework and monitoring the risk environment. The OCEO has identified electoral integrity and security issues, specifically during the general election, as the key risks to delivering on its mandate in 2019–2020. These risks may compromise the privacy of Canadians and their trust and ability to participate in the electoral process. The agency has undertaken actions to mitigate these potential risks.

Significant changes in relation to operations, personnel and programs

Bill C-76, which received royal assent on December 13, 2018, brought significant changes to the OCEO's mandate and operations. Notably, effective April 1, 2019, the Commissioner of Canada Elections (CCE), the independent officer whose duty is to ensure that the Canada Elections Act and the Referendum Act are complied with and enforced, has been transferred from the Office of the Director of Public Prosecutions to the OCEO. A quarter of the CCE's appropriation has been transferred to the OCEO, with the remainder to be transferred via Supplementary Estimates. All other expenditures of the CCE are reflected in Electoral expenditures (see Table A.1), which also includes expenditures of Elections Canada. The current CCE is Mr. Yves Côté.

Effective May 13, 2019, Mr. Marc Limoges was appointed Deputy Chief Financial Officer (DCFO).

Approval by senior officials

Original signed by

Stéphane Perrault
Chief Electoral Officer

Gatineau, Canada
August 29, 2019

Hughes St-Pierre, CPA, CMA
Chief Financial Officer


Table A.1
Office of the Chief Electoral Officer
Quarterly financial report
For the quarter ended June 30, 2019

Statement of Authorities (unaudited)

Fiscal year 2018–2019 (in thousands of dollars)
  Total available for use for the year ending March 31, 2019 Footnote 1 Used during the quarter ended June 30, 2018 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 30,769 7,463 7,463
Statutory authorities      
Electoral expendituresFootnote 3 19,503 19,503 19,503
Contributions to employee benefit plans 2,145 2,145 2,145
Salary of the Chief Electoral Officer 55 55 55
Collection Agency Fees under section 17.1 of the Financial Administration Act 1 1 1
Total Statutory authorities 21,704 21,704 21,704
Total authorities 52,473 29,167 29,167

Statement of Authorities (unaudited) (continued)

Fiscal year 2019–2020 (in thousands of dollars)
  Total available for use for the year ending March 31, 2020 Footnote 1 Used during the quarter ended June 30,  2019 Year to date used at quarter-end
Vote 1 – Program expendituresFootnote 2 39,893 8,428 8,428
Statutory authorities      
Electoral expendituresFootnote 3 27,300 27,300 27,300
Contributions to employee benefit plans 3,156 3,156 3,156
Salary of the Chief Electoral Officer 67 67 67
Collection Agency Fees under section 17.1 of the Financial Administration Act - - -
Total Statutory authorities 30,523 30,523 30,523
Total authorities 70,416 38,951 38,951

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 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 Office of the Chief Electoral Officer'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 of the Canada Elections Act.



Table A.2
Office of the Chief Electoral Officer
Quarterly financial report
For the quarter ended June 30, 2019

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2018–2019 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2019 Footnote 1 Expended during the quarter ended June 30, 2018 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 40,115 16,809 16,809
Transportation and communications 1,347 1,347 1,347
Information 445 445 445
Professional and special services 6,031 6,031 6,031
Rentals 3,277 3,277 3,277
Repair and maintenance 253 253 253
Utilities, materials and supplies 221 221 221
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 168 168 168
Transfer payments 604 604 604
Public debt charges -   -   -  
Other subsidies and payments 12 12 12
Total gross budgetary expenditures 52,473 29,167 29,167
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 52,473 29,167 29,167


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

Fiscal year 2019–2020 (in thousands of dollars)
  Planned expenditures for the year ending March 31, 2020 Footnote 1 Expended during the quarter ended June 30, 2019 Year to date used at quarter-end
Expenditures:
PersonnelFootnote 2 53,065 21,600 21,600
Transportation and communications 1,320 1,320 1,320
Information 2,561 2,561 2,561
Professional and special services 6,363 6,363 6,363
Rentals 5,258 5,258 5,258
Repair and maintenance 75 75 75
Utilities, materials and supplies 879 879 879
Acquisition of land, buildings and works -   -   -  
Acquisition of machinery and equipment 233 233 233
Transfer payments 648 648 648
Public debt charges -   -   -  
Other subsidies and payments 14 14 14
Total gross budgetary expenditures 70,416 38,951 38,951
Less Revenues netted against expenditures:
Revenues -   -   -  
Total Revenues netted against expenditures: -   -   -  
Total net budgetary expenditures 70,416 38,951 38,951

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.