open Secondary menu

Office of The Chief Electoral Officer
Quarterly Financial Report 2019–2020
For the quarter ended September 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).

A summary description of the agency's programs can be found at 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 second quarter of 20192020, the agency concluded its preparatory activities and initiated the conduct of the 43rd general election called on September 11, 2019 for a polling day of October 21, 2019.

First two quarters year-over-year variance

In the first two quarters of 20192020, budgetary expenditures totalled $126.5 million compared to $70.0 million in the same period of 20182019. The net increase of $56.5 million is explained by:

  • a net increase of $53.9 million in electoral expenditures and employee benefit plans (see Table A.1), which is largely explained by a $61.4 million increase in expenditures for the 2019 general election, a $1.5 million increase due to a timing difference in the payment of office rent, and a decrease of $9.0 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 $2.6 million in program expenditures (see Table A.1), mainly as a result of the salaries for the newly hired indeterminate employees following the implementation of Budget 2018 measures on Rebalancing Elections Canada's Expenditures, as well as C-76 and C-50.

Second quarter year-over-year variance

In the second quarter of 20192020, budgetary expenditures totalled $87.5 million compared to $40.9 million in the same period of 20182019. The net increase of $46.7 million is largely explained by the same reasons as above.

Figure 1 First Two Quarters' Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

Figure 1 – First Two Quarters' Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

Textual description of Figure 1 – First Two Quarters' Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)

*Annual authorities for statutory funds reflect expenditures only for the first and second quarters, 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 20192020. 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

The 43rd general election was called on September 11, 2019, with a polling day of Monday, October 21, 2019. In order to serve 24.7 million Canadian electors, Elections Canada opened over 500 offices across the country and secured some 20,000 polling places. Returning officers in Canada's 338 electoral districts hired some 300,000 election workers to conduct the election across the country.

Approval by senior officials

Original signed by:

Stéphane Perrault
Chief Electoral Officer

Gatineau, Canada
November 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 September 30, 2019

Statement of Authorities (unaudited)

Fiscal year 2018–2019 (in thousands of dollars)
Total available for use for the year ending March 31, 2019Footnote 1 Used during the quarter ended September 30, 2018 Year-to-date used at quarter-end
Vote 1 – Program expendituresFootnote 2 31,951 7,351 14,814
Statutory authorities
Electoral expendituresFootnote 3 50,743 31,240 50,743
Contributions to employee benefit plans 4,291 2,146 4,291
Salary of the Chief Electoral Officer 181 126 181
Collection agency fees under section 17.1 of the Financial Administration Act 1 - 1
Total statutory authorities 55,216 33,512 55,216
Total authorities 87,167 40,863 70,030

Statement of Authorities (unaudited) (continued)

Fiscal year 2019–2020 (in thousands of dollars)
  Total available for use for the year ending March 31, 2020Footnote 1 Used during the quarter ended September 30,  2019 Year-to-date used at quarter-end
Vote 1 – Program expendituresFootnote 2 41,543 8,940 17,368
Statutory authorities      
Electoral expendituresFootnote 3 102,661 75,361 102,661
Contributions to employee benefit plans 6,312 3,156 6,312
Salary of the Chief Electoral Officer 143 76 143
Collection agency fees under section 17.1 of the Financial Administration Act - - -
Total statutory authorities 109,116 78,593 109,116
Total authorities 150,659 87,533 126,484

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 the 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 with the Canada Elections Act.



Table A.2
Office of The Chief Electoral Officer
Quarterly financial report
For the quarter ended September 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, 2019Footnote 1 Expended during the quarter ended September 30, 2018 Year-to-date used at quarter-end
Expenditures:
PersonnelFootnote 2 51,638 17,692 34,501
Transportation and communications 2,762 1,415 2,762
Information 1,240 795 1,240
Professional and special services 23,325 17,294 23,325
Rentals 5,581 2,304 5,581
Repair and maintenance 267 14 267
Utilities, materials and supplies 531 310 531
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 832 664 832
Transfer payments 970 366 970
Public debt charges - - -
Other subsidies and payments 21 9 21
Total gross budgetary expenditures 87,167 40,863 70,030
Less revenues netted against expenditures:
Revenues - - -
Total revenues netted against expenditures: - - -
Total net budgetary expenditures 87,167 40,863 70,030


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

Fiscal year 20192020 (in thousands of dollars)
Planned expenditures for the year ending March 31, 2020Footnote 1 Expended during the quarter ended September 30, 2019 Year-to-date used at quarter-end
Expenditures:
PersonnelFootnote 2 90,757 44,982 66,582
Transportation and communications 4,180 2,860 4,180
Information 6,290 3,729 6,290
Professional and special services 20,112 13,749 20,112
Rentals 25,063 19,805 25,063
Repair and maintenance 241 166 241
Utilities, materials and supplies 1,592 713 1,592
Acquisition of land, buildings and works - - -
Acquisition of machinery and equipment 1,426 1,193 1,426
Transfer payments 975 327 975
Public debt charges - - -
Other subsidies and payments 23 9 23
Total gross budgetary expenditures 150,659 87,533 126,484
Less revenues netted against expenditures:
Revenues - - -
Total revenues netted against expenditures: - - -
Total net budgetary expenditures 150,659 87,533 126,484

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.