Quarterly Financial Report For the Quarter Ended June 30, 2021

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 2021-2022 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 2021-2022 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, 2021, total authorities available for the year have increased by $5.4 million or 37.6% over the previous year. This increase in authorities available for use is mainly due to the full supply of the Main Estimates for 2021-22 compared to reduced supply (75%) of the Main Estimates in 2020-21, due to the COVID-19 pandemic situation.

If full supply had been available for the first quarter of 2020-21, the total authorities available for the year 2021-22 would have increased by 3.2% compared to the same quarter of the previous year.

This increase is due to compensation related to the negotiation of new collective agreements. The increase also reflects associated adjustments to budgetary statutory authorities related to employee benefit plans.

Significant changes to budgetary expenditures

OCOL spent 22.8% ($5.0 million) of its authorities as of June 30, 2021, of which 90% ($4.6 million) relates to personnel expenditures.

Expenditures to date have increased by $0.9 million (22.8%) compared to the same quarter last year. This variance is mainly due to an increase in personnel costs as the result of the negotiation of new collective agreements. The increase in personnel costs is also due to the decrease in staff costs for the same quarter last year as a result of 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 identified namely OCOL’s capacity to meet strategic and operational priorities as well as its ability to support its mandate following challenges to its reputation 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 2020-21, the Office of the Commissioner continues to plan its activities to meet the priorities of its 2019-2025 strategic plan, which includes Vision 2025.

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 continues to conduct a review of its budget when necessary so that it can reallocate resources, as needed, to meet its priorities. It is critical now more than ever with the pandemic as well as with the modernization of the Official Languages Act that OCOL monitor its priorities and resources to support the changing environment.

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 advisory project on its annual report in order to innovate and further the Official languages agenda and to better integrate its annual report with other products from the Office of the Commissioner.

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 continued to integrate communications in its activities in order to promote the Commissioner’s position on important official languages issues that are currently 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 and the modernization of the Act, 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. 73). The most common action requests remain acting appointments (less than 4 months), casual employees and students, however, there has also been an increase in requests for non-advertised internal appointment processes. Note that this data represents staffing requests only.

Approval by Senior Officials

Approved by:

Raymond Théberge 
Commissioner of Official Languages 

Eric Trépanier, CPA, CGA
Chief Financial Officer

Gatineau, Canada
August 29, 2021

Statement of Authorities (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited)