Office of the Chief Electoral Officer
Quarterly Financial Report 2022–2023
For the quarter ended September 30, 2022
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) or the agency.
A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/dp2021&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 2022–2023 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 2022–2023, the agency continued the post-event activities of the 44th general election held on September 20th 2021, as well as the decennial electoral boundaries redistribution exercise.
First two quarters' year-over-year variance
In the first two quarters of 2022–2023, budgetary expenditures totalled $98.3 million compared to $232.3 million in the same period of 2021–2022. The decrease of $134.0 million is explained by:
- a decrease of $138.6 million in Electoral expenditures (see Table A.1), which are largely explained by the delivery of the 44th general election that took place in 2021–2022, including $2.5 million of reimbursements to candidates recognized in 2021–2022 which are to be reversed in the third quarter of 2022–2023;
- an increase of $0.8 million in Contributions to employee benefit plans (see Table A.1), which is mostly due to the budget of the preparation activities for the 45th general election;
- an increase of $4.0 million in Expenditures under the Electoral Boundaries Readjustment Act (see Table A.1), which is explained by activities related to the decennial electoral boundaries redistribution exercise; and
- a decrease of $0.2 million in Program expenditures (see Table A.1), which is largely explained by the delay of staffing indeterminate positions.
Second quarter year-over-year variance
In the second quarter of 2022–2023, budgetary expenditures totalled $43.9 million compared with $186.5 million in the same period of 2021–2022. The decrease of $142.6 million is explained by:
- a decrease of $148.5 million in Electoral expenditures (see Table A.1), which is largely explained by the delivery of the 44th general election that took place in 2021-2022, including $14.1 million of reimbursements to parties and candidates recognized in 2021–2022 that were reversed in the second quarter of 2022–2023;
- an increase of $3.1 million in Contributions to employee benefit plans (see Table A.1), due mostly to a temporary expenditure that was reversed in the second quarter of 2021–2022;
- an increase of $2.3 million in Expenditures under the Electoral Boundaries Readjustment Act (see Table A.1), which is explained by activities related to the decennial electoral boundaries redistribution exercise; and
- an increase of $0.5 million in Program expenditures (see Table A.1), which is largely explained by a temporary expenditure in retroactive payments that was reversed in the second quarter of 2021–2022.
Figure 1 – Second Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
Text version of "Figure 1 – Second Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)"
The bar graph shows a comparison of annual authorities and the first two quarter expenditures for 2021-2022 and 2022-2023 (in thousands of dollars).
- 2021-2022: annual authorities $258,777 thousands; first quarter expenditures $45,699 thousands, second quarter expenditures of $186,556 thousands for a total of $232,255 thousands.
- 2022-2023: annual authorities $125,399 thousands; first quarter expenditures $54,324 thousands, second quarter expenditures of $43,941 thousands for a total of $98,264 thousands.
*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 redistribution. Any of these events can significantly change expenditures from one fiscal year to the next.
The agency is continually updating its corporate risk framework and monitoring the risk environment and has identified the following risks:
- Security: There is a risk that serious security and cybersecurity issues compromise EC's services, the privacy of Canadians and their trust and ability to participate in the electoral process.
- Trust in elections: There is a risk that proliferation of negative societal trends results in a decline in trust in the electoral process and election results.
The agency has undertaken actions to mitigate these risks.
Significant changes in relation to operations, personnel and programs
There was the following appointment during the second quarter of 2022-2023:
- Effective July 11, 2022, Mylène Gigou was appointed Senior Director, Enforcement in the Office of the Commissioner of Canada Elections.
Approval by senior officials
Stéphane Perrault
Chief Electoral Officer
Marc Limoges
Chief Financial Officer
Gatineau, Canada
November 29, 2022
Table A.1
Office of the chief electoral officer
Quarterly financial report
For the quarter ended September 30, 2022
Statement of Authorities (unaudited)
Total available for use for the year ending March 31, 2022 footnote 1 | Used during the quarter ended September 30, 2021 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expenditures footnote 2 | 51,352 | 12,047 | 24,830 |
Statutory authorities | |||
Electoral expenditures footnote 3 | 200,651 | 173,690 | 200,651 |
Contributions to employee benefit plans | 5,961 | 347 | 5,961 |
Expenditures under Electoral Boundaries Reajustment Act | 632 | 381 | 632 |
Salary of the Chief Electoral Officer | 181 | 91 | 181 |
Total statutory authorities | 207,425 | 174,509 | 207,425 |
Total authorities | 258,777 | 186,556 | 232,255 |
Statement of Authorities (unaudited) (continued)
Total available for use for the year ending March 31, 2023 note 1 | Used during the quarter ended September 30, 2022 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expenditures note 2 | 51,782 | 12,554 | 24,647 |
Statutory authorities | |||
Electoral expenditures note 3 | 62,009 | 25,192 | 62,009 |
Contributions to employee benefit plans | 6,796 | 3,398 | 6,796 |
Expenditures under Electoral Boundaries Reajustment Act | 4,625 | 2,703 | 4,625 |
Salary of the Chief Electoral Officer | 187 | 94 | 187 |
Total statutory authorities | 73,617 | 31,387 | 73,617 |
Total authorities | 125,399 | 43,941 | 98,264 |
More information is available in Table A.2.
Footnotes
Return to source of footnote 1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31,20xx" columns reflect first and second quarters expenditures only, since statutory authorities are granted as expenditures are incurred.
Return to source of footnote 2 Program expenditures is an annual appropriation that funds the salaries of the Office of the Chief Electoral Officer's indeterminate employees.
Return to source of footnote 3 Under the statutory authority, Electoral expenditures funds the operating expenditures of the agency and those incurred in preparing for and conducting elections, reimbursing election expenses to eligible candidates and parties, monitoring compliance with and enforcing the Canada Elections Act.
Table A.2
Office of the Chief Electoral Officer
Quarterly financial report
For the quarter ended September 30, 2022
Departmental budgetary expenditures by Standard Object (unaudited)
Planned expenditures for the year ending March 31, 2022 footnote 1 | Expended during the quarter ended September 30, 2021 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
Personnel footnote 2 | 174,943 | 114,436 | 148,421 |
Transportation and communications | 27,820 | 27,521 | 27,820 |
Information | 4,037 | 2,012 | 4,037 |
Professional and special services | 14,722 | 10,299 | 14,722 |
Rentals | 31,384 | 27,181 | 31,384 |
Repair and maintenance | 267 | 211 | 267 |
Utilities, materials and supplies | 3,924 | 3,289 | 3,924 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 43 | 43 | 43 |
Transfer payments | 1,213 | 300 | 1,213 |
Public debt charges | - | - | - |
Other subsidies and payments | 424 | 1,264 | 424 |
Total gross budgetary expenditures | 258,777 | 186,556 | 232,255 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 258,777 | 186,556 | 232,255 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 2023 footnote 1 | Expended during the quarter ended September 30, 2022 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
Personnel footnote 2 | 80,535 | 26,968 | 53,400 |
Transportation and communications | 1,202 | 605 | 1,202 |
Information | 3,708 | 2,604 | 3,708 |
Professional and special services | 13,354 | 8,286 | 13,354 |
Rentals | 13,717 | 10,791 | 13,717 |
Repair and maintenance | 333 | 176 | 333 |
Utilities, materials and supplies | 3,043 | 1,739 | 3,043 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 29 | 16 | 29 |
Transfer payments | 9,281 | (7,422) footnote 3 | 9,281 |
Public debt charges | - | - | - |
Other subsidies and payments | 197 | 178 | 197 |
Total gross budgetary expenditures | 125 399 | 43,941 | 98,264 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 125 399 | 43,941 | 98,264 |
Footnotes
Return to source of footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 20xx" columns reflect first and second quarters expenditures only, since statutory authorities are granted as expenditures are incurred.
Return to source of footnote 2 Personnel expenditures include both Vote 1 - Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely budgetary statutory.
Return to source of footnote 3 Transfer Payments, in fiscal year 2022-2023, includes the reversal of Payables at Year-End for reimbursements to parties and candidates from the 44th general election, recognized in 2021-2022.