Quarterly Financial Report For the Quarter Ended June 30, 2018

Mandate and programs

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 programs can be found in the 2018-2019 Departmental Plan 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 2018-2019 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 results reporting process. However, the spending authorities voted by Parliament are prepared on an expenditure basis.

Significant changes to authorities

As of June 30, 2018, total authorities available for the fiscal year compared to the same quarter of the prior year have increased by $0.6 million, or 3%, following the signature of several collective agreements.

Significant changes to budgetary expenditures

OCOL has spent 22% ($4.8 million) of its authorities as of June 30, 2018, of which 88% ($4.2 million) relates to personnel costs.

Expenditures to date have increased by $0.3 million, or 6%, compared with the same quarter last year. This primarily due to:

• an increase of $148,000 in personnel costs mainly due to pay increases following the signature of collective agreements;
• an increase of $57,000 in rental costs due to timing difference in the renewal of licenses.

Risks and Uncertainties

The risks OCOL had to take into account are caused by factors related to its operating environment. Risks related to changes to operational priorities, processes and objectives as well as OCOL’s reputation to support its mandate can be considered not only threats but also opportunities.

Changes to operational priorities, processes and objectives

In 2017-18, OCOL initiated a vision exercise that included a review of its management structure. Following the arrival of the new Commissioner in January 2018, the vision for the next seven years (Vision 2025) was defined. The work will end in 2018-19, with an action plan for said vision and a new structure.

There is a threat that changes to the volume of work, the work environment, and priorities will impact strategic and operational plans. However, these changes could also bring many opportunities to support OCOL’s mandate. It should be noted that the planning process has been modified to ensure greater flexibility and to allow the organization to adapt.

OCOL’s reputation to support its mandate

There is a threat that the organization may not be able to meet the demand and/or have authority to properly enforce/support the Official Languages Act. However, there are also opportunities to build OCOL’s reputation with the new leadership, Vison 2025 exercise, the Courts Challenges Program and focused intervention strategies in new areas and with new stakeholders.