Quarterly Financial Report For the Quarter Ended September 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

Statement of Authorities

At the second quarter, the Statement of Authorities below shows a decrease of $5.6 million or 24.7% over the previous year in the authorities available for use which is mainly 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.

This statement also indicates that OCOL spent $9.0 million of its available authorities for the current fiscal year 2020-21, of which 87.6% ($7.9 million) relates to personnel expenditures. If full supply had been available in the second quarter, these expenditures would represent 41.9% of the budget that would have been spent.   

Statement of Department Budgetary Expenditures by Standard Object

As per the Budgetary Expenditures by Standard Object, the OCOL’s total budgetary expenditures decreased by an amount of 1.0 million or 10.6% as per September 2020 when compared to the expenditures reported at the same period in 2019-20. This decrease is mainly explained by:

• a decrease of $535,000 in staff costs attributable to the slowdown and postponement of staffing processes related to COVID-19 pandemic;
• a decrease of $132,000 in transportation, communication and information costs related to cancellation and postponement of travel and events related to COVID-19 pandemic; and
• a decrease of $ 392,000 in machinery and equipment costs, major purchases for the renewal of computer equipment having been made in the second quarter of 2019-20.

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 has developed a strategic human resources management plan in which it has identified specific areas of intervention relating to its current and future human resources challenges.

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 has reviewed the 2020-21 priorities based on the context of the pandemic and monitors their progress on a quarterly basis.

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 agile and efficient.

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 second quarter of last year (73 vs. 92). However, the most common action requests remain acting appointment (less than 4 months) and students.

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. Our IT team also ensured that the Office of the Commissioner's data is kept secure.

An application was developed to oversee 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
November 29, 2020

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)