Quarterly Financial Report For the Quarter Ended June 30, 2020

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

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 2020-2021 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 2020-2021 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 money 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.

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 at June 30, 2020, total authorities available for the year decreased by $4.9 million or 25.3% over the previous year. This decrease in authorities available for use is due to the reduced supply of the Main Estimates. Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the Fall. OCOL is expected to receive full supply for the 2020-21 Main Estimates in December 2020.

Significant changes to budgetary expenditures

OCOL spent 18.4% ($4.1 million) of its authorities as of June 30, 2020, of which 87% ($3.6 million) relates to personnel expenditures.

Expenditures to date have decreased by $0.8 million (18.4%) compared to the same quarter last year. This decrease is mainly due to a decrease in staff costs attributable to the slowdown and postponement of staffing processes related to the COVID-19 pandemic.

Risks and Uncertainties

The risks OCOL has considered are caused by factors related to its operating environment. Risks related to OCOL’s capacity to meet strategic and operational priorities as well as its reputation to support its mandate could be considered not only as threats but also as opportunities.

As part of the integrated planning process, the response to corporate risks was integrated into the Integrated Operational Plan and monitored periodically by the Executive Committee.

Capacity to meet strategic and operational priorities

In 2019-20, an action plan was developed to meet the priorities of OCOL’s multi-year Strategic Plan (2019-25), which includes Vision 2025. The action plan is currently in its second year of implementation.

As a result, OCOL continues to ensure the establishment of a shared vision around which the strategic and operational priorities, as well as the activities that stem from them, will be built.

OCOL is conducting an ongoing review of its budget so that it can reallocate resources, as needed, to meet its priorities. For example, the organization will be conducting an in-depth analysis of its human resources situation in order to develop a strategic plan for that purpose.

OCOL will also continue to assess the impact of changes in operational priorities, processes and objectives, particularly through the implementation of the Integrated Operational Plan and change management strategies in order to address potential changes to the organizations’ priorities stemming from the implementation of Vision 2025 and proposals from external stakeholders, including federal institutions’ implementation of the Action Plan for Official Languages prepared by Canadian Heritage and the modernization of the Act by the Government.

OCOL’s reputation to support its mandate

OCOL is focusing efforts on reviewing its processes to achieve cost savings, streamline and innovate, where possible. For example, OCOL conducted an in-depth analysis of the stages of the implementation of its investigations program in order to prepare an action plan aimed at improving performance. OCOL hopes that this will increase its understanding of the environment and allow it to become more flexible.

Furthermore, OCOL developed intervention strategies that will reach various stakeholders, such as federal institutions and Official languages minority communities (OLMC), in order to better manage expectations and establish constructive relationships. Such is the case with the implementation of the Official Languages Maturity Model and the stakeholder management project.

OCOL has also improved communications in its activities in order to promote the Commissioner’s position on important official languages issues in the public space.

That said, given that OCOL does not have control over external factors influencing the future of its activities, especially in the context of the COVID-19 pandemic, the organization will ensure the flexibility of the strategic planning process to adapt to organizational changes and, if required, will realign resources and/or work.

Significant Changes in Relation to Operations, Personnel and Programs

The number of human resources action requests has significantly decreased this year compared to the first quarter of last year (43 vs. 79). Operations were affected at the hiring level due to limitations imposed by the Public Service Commission on the evaluation of second language tests and limitations on employee security clearance assessments (fingerprinting), both of which are mandatory requirements for the hiring of new employees.

The sectors have had to adapt their work methods in order to be able to continue operations. For example, procedures have been sent for electronic signatures, staffing files are now digital.

IT and administrative services had to adapt quickly to the changes imposed by the pandemic. For example, IT and administrative services had to react quickly to equip employees at home and ensure that employees had the necessary equipment to do their jobs productively.

An application was developed to manage equipment management and workplace visits to ensure the premises were safe for employees.

Approval by Senior Officials

Approved by:

Raymond Théberge 
Commissioner of Official Languages 

Eric Trépanier, CPA, CGA
Chief Financial Officer

Gatineau, Canada
August 19, 2020

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in thousands of dollars)
Authorities Fiscal year 2020-21:
Total available for use for the year ending March 31, 2021Table note *
Fiscal year 2020-21:
Used during the quarter ended June 30, 2020
Fiscal year 2020-21:
Year to date used at quarter end
Fiscal year 2019–20:
Total available for use for the year ending March 31, 2020Table note *
Fiscal year 2019–20:
Used during the quarter ended June 30, 2019
Fiscal year 2019–20:
Year to date used at quarter end
Vote 1 - Program expenditures 14,474 3,565 3,565 19,374 4,369 4,369
Budgetary statutory authorities 1,664 555 555 2,306 577 577
Total budgetary authorities 16,138 4,120 4,120 21,680 4,946 4,946
Total authorities 16,138 4,120 4,120 21,680 4,946 4,946

Table note

Table note *

Table note * Includes only Authorities available for use and granted by Parliament at quarter end.

Return to table note * referrer

 

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Expenditures Fiscal year 2020–21:
Planned expenditures for the year ending March 31, 2021
Fiscal year 2020–21:
Expended during the quarter ended June 30, 2020
Fiscal year 2020–21:
Year to date used at quarter end
Fiscal year 2019-20:
Planned expenditures for the year ending March 31, 2020
Fiscal year 2019-20:
Expended during the quarter ended June 30, 2019
Fiscal year 2019-20:
Year to date used at quarter end
Personnel 12,911 3,646 3,646 17,380 4,427 4,427
Transportation and communications 484 29 29 645 55 55
Information 193 1 1 258 28 28
Professional and special services 1,807 265 265 2,408 192 192
Rentals 258 59 59 344 89 89
Repair and maintenance 129 - - 172 - -
Utilities, materials and supplies 97 5 5 129 30 30
Acquisition of machinery and equipment 259 115 115 344 125 125
Total gross budgetary expenditures 16,138 4,120 4,120 21,680 4,946 4,946
Total net budgetary expenditures 16,138 4,120 4,120 21,680 4,946 4,946
Date modified:
2020-09-18