Quarterly Financial Report for the quarter ended September 30, 2012
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. It should be read in conjunction with the Main Estimates, the previous quarterly financial report, as well as Canada's Economic Action Plan 2012 (Budget 2012). This quarterly report has not been subject to an external audit or review.
Mandate and program activities
The Office of the Commissioner of Official Languages (OCOL) supports the Commissioner of Official Languages in fulfilling his mandate, which consists of taking all actions and measures within his authority to ensure recognition of the status of each of the official languages and compliance with the spirit and intent of the Official Languages Act in the administration of the affairs of federal institutions, including any of their activities relating to the advancement of English and French in Canadian society.
Further information about OCOL's responsibilities and program activities can be found in the 2012–13 Report on Plans and Priorities and in the Main Estimates.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes OCOL's spending authorities granted by Parliament and used by OCOL, consistent with the Main Estimates for the 2012–13 fiscal year. This quarterly report has also 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.
OCOL uses the full accrual method of accounting to prepare and present its annual financial statements, which are part of the organization's performance reporting process. However, the spending authorities voted by Parliament are prepared 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, 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 2012–13, frozen allotments will be established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In future years, the changes to departmental authorities will be implemented through the Annual Reference Level Update, as approved by Treasury Board, and reflected in the subsequent Main Estimates tabled in Parliament.
Highlights of fiscal quarter and fiscal year to date
This section presents a brief analysis of significant variances in relation to actual expenditures and planned expenditures that affected both the quarter and the year to date results, compared to the same periods of the preceding fiscal year.
Significant changes to authorities
As of September 30, 2012, total authorities available for the fiscal year increased by $0.4 million compared to the previous fiscal year, mainly due to the increase in the operating budget carry forward amount.
Significant changes to budgetary expenditures
OCOL has spent approximately 43% of its authorities as of September 30, 2012, of which 82% represent personnel costs.
Expenditures in this quarter have decreased by $1.1 million, or 19%, compared to the same quarter last fiscal year. This is primarily related to the fact that, in the previous fiscal year, most of the eligible employees had exercised the option for the immediate payout of their accumulated severance benefits, for a total of $1.0 million. As of September 30, 2012, there has been less than $0.1 million paid for this benefit.
Risks and uncertainties
Funding required for IM/IT
The inadequate core systems and support related to IM/IT are still a high risk. OCOL is gradually implementing its strategic plan as funding permits. The Budget 2012 reflected necessary IT investments to address its deteriorating applications. Details are discussed in the Budget 2012 Implementation section.
Management is presently implementing the action plan prepared in response to the A-Base Review conducted in 2010–11. This review identified several constraints within the organization as well as opportunities for optimizing resources.
The cost containment measures announced in Budget 2010 are another financial risk OCOL faces because it has to absorb salary increases that have been agreed on in collective agreements through its A-Base funding. Management has implemented various measures to adjust to this financial constraint.
Significant changes in relation to operations, personnel and programs
There have been no significant changes in relation to operations, personnel and programs over the past quarter.
Budget 2012 Implementation
As announced in Budget 2012, OCOL will contribute to the Government's expenditure restraint efforts by reallocating operating savings towards necessary information technology investments. Over a four-year period, a total of $4.2 million will be allocated to the implementation of an IM/IT integrated solution.
The implementation of the action plan as a result of the A-Base review produced some efficiency gains and released funds.
In addition, other activities will be reduced or postponed. Each branch has conducted a comprehensive analysis and identified expenditure items to determine which projects could be delayed. For example, we will reduce the number of studies we conduct, we will reduce the scope of the awareness campaign that had been planned for the travelling public and we will refer proposed staffing actions to our staffing committee to determine if any can be delayed. Some of the funding will also come from monies freed up following a reduction of budgets for certain budget elements, such as travel, hospitality and professional services.
For the immediate future, OCOL will allocate its resources based on the most important priorities related to its mandate. However, once information technology investments have been made, OCOL will need to reallocate its resources back to programs to ensure delivery on its mandate.
Approval by senior officials
Commissioner of Official Languages
Chief Financial Officer
November 29, 2012
Statement of Authorities (unaudited)
|Fiscal year 2012–13||Fiscal year 2011–12|
|Total available for use for the year ending March 31, 2013*||Used during the quarter ended September 30, 2012||Year to date used at quarter-end||Total available for use for the year ending March 31, 2012*||Used during the quarter ended September 30, 2011||Year to date used at quarter-end|
|Table note *Includes only Authorities available for use and granted by Parliament at quarter-end.|
|Vote 20 - Program expenditures||19,348||4,180||8,217||18,911||5,263||9,068|
|Budgetary statutory authorities||2,250||562||1,125||2,301||576||1,151|
|Total budgetary authorities||21,598||4,742||9,342||21,212||5,839||10,219|
Departmental budgetary expenditures by Standard Object (unaudited)
|Expenditures:||Fiscal year 2012–13||Fiscal year 2011–12|
|Planned expenditures for the year ending March 31, 2013||Expended during the quarter ended September 30, 2012||Year to date used at quarter-end||Planned expenditures for the year ending March 31, 2012||Expended during the quarter ended September 30, 2011||Year to date used at quarter-end|
|Transportation and communications||958||155||260||1,001||212||358|
|Professional and special services||4,384||518||1,044||3,773||432||815|
|Repair and maintenance||261||19||27||233||88||176|
|Utilities, materials and supplies||161||24||45||165||33||57|
|Acquisition of machinery and equipment||350||40||105||545||28||30|
|Other subsidies and payments||6||-||-||6||1||1|
|Total gross budgetary expenditures||21,598||4,742||9,342||21,212||5,839||10,219|
|Total net budgetary expenditures||21,598||4,742||9,342||21,212||5,839||10,219|