Elections Canada Quarterly Financial Report 2011-2012 – For the quarter ended September 30, 2011

Statement outlining results, risks and significant changes in operations, personnel and program

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. This quarterly report should be read in conjunction with the Main Estimates and Supplementary Estimates.

The Office of the Chief Electoral Officer, commonly known as Elections Canada, is an independent, non-partisan agency that reports directly to Parliament. Its mandate is to:

A summary description of the Agency's program activities can be found at http://www.tbs-sct.gc.ca/rpp/2011-2012/inst/ceo/ceo01-eng.asp#sec1

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency's spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2011-2012 fiscal year. This quarterly report has 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.  With respect to Elections Canada, the Canada Elections Act, the Electoral Boundaries Readjustment Act and the Referendum Act provide for all expenditures with the exception of salaries of indeterminate employees, which are funded through an annual appropriation.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

Elections Canada uses the full accrual method of accounting to prepare and present its annual audited departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

This quarterly report has not been subject to an external audit or review.

Highlights of fiscal quarter and fiscal year to date (YTD) results

In the first two quarters of 2011-2012 total budgetary expenditures were $224.1 million compared to $56.8 million in the same period of 2010-2011. The $167.3 million increase is due to the delivery of a general election.  During the first half of the 2011-2012 fiscal year, Elections Canada administered the 41st General Election (polling day of May 2, 2011) while in the same period of the prior fiscal year, the Agency carried out election readiness activities in the second year of a minority government.

Budgetary expenditures in the second quarter of 2011-2012 were $31.3 million compared to $37.4 million in the same quarter of 2010-2011.  This $6.1 million net decrease is due to $13.7 million less for political parties' quarterly allowances (timing differences) and $5.8 million less for election readiness, operating and project expenditures, which were offset by $13.4 million of expenditures for the 41st General Election.

Finally, 2011-2012 second quarter expenditures of $31.3 million were significantly lower than $192.8 million in the first quarter as a large proportion of payments related to the delivery of the 41st General Election were processed in the first quarter of this fiscal year.

Figure 1 – First and Second Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)*

Figure 1

* Annual Authorities for statutory funds reflect expenditures for the first two quarters only since statutory authorities are granted as expenditures are incurred.

Click here for a textual description of Figure 1.

Risks and Uncertainties

Budget 2010 announced that the operating budgets of departments would be frozen at their 2010-2011 levels for the fiscal years 2011-2012 and 2012-2013. This has an impact on Elections Canada's appropriation, which covers the salaries of our indeterminate staff. For the next two fiscal years, we will not be funded for salary increases and are therefore taking steps to absorb increases resulting from collective agreements.

Elections Canada's expenditures are influenced by the frequency and number of electoral events (general elections, by-elections) and by infrequent exercises such as the electoral district boundaries redistributions and referenda. Any of these events could significantly change expenditures from one fiscal year to the next.

Significant changes in relation to operations, personnel and programs

As mentioned above, Elections Canada was delivering the 41st General Election during the first two quarters of 2011-2012 and will close out this general election (reporting, evaluations, compliance auditing, etc.) throughout the balance of the fiscal year and into 2012-13.

The only significant change in personnel during the second quarter of 2011-2012 was the appointment of a new Chief Financial Officer.

Approval by Senior Officials

Marc Mayrand
Chief Electoral Officer of Canada

Helen J. Bélanger, CMA
Chief Financial Officer


Ottawa, Canada
November 29, 2011



Table A.1
Elections Canada
Quarterly Financial Report
For the quarter ended September 30, 2011

Statement of Authorities (unaudited)

Fiscal year 2010-2011
(in thousands of dollars) Total available for use for the year ending March 31, 2011 * Used during the quarter ended September 30, 2010 Year to date used at quarter-end
Vote 15 – Program expenditures 30,938 7,761 14,190
Budgetary statutory authorities * 42,656 29,676 42,656
Total Budgetary authorities 73,594 37,437 56,846
Non-budgetary authorities -   -   -  
Total authorities 73,594 37,437 56,846

Statement of Authorities (unaudited)(continued)

Fiscal year 2011-2012
(in thousands of dollars) 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
Vote 15 – Program expenditures 30,946 8,002 14,881
Budgetary statutory authorities * 209,248 23,363 209,248
Total Budgetary authorities 240,194 31,365 224,129
Non-budgetary authorities    -      -      -  
Total authorities 240,194 31,365 224,129

More information is available in Table A.2

* Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect expenditures for the first two quarters only since statutory authorities are granted as expenditures are incurred.



Table A.2
Elections Canada
Quarterly Financial Report
For the quarter ended September 30, 2011

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2010-2011 (in thousands of dollars)
Expenditures: Planned expenditures for the year ending March 31, 2011* Expended during the quarter ended Sept. 30, 2010 Year to date used at quarter-end
Personnel ** 38,823 11,314 22,075
Transportation and communications 1,973 1,159 1,973
Information 1,461 1,098 1,461
Professional and special services 11,721 7,186 11,721
Rentals 2,215 1,567 2,215
Repair and maintenance 1,244 256 1,244
Utilities, materials and supplies 416 244 416
Acquisition of land, buildings and works 14 10 14
Acquisition of machinery and equipment 770 432 770
Transfer payments 14,862 14,082 14,862
Public debt charges -   -   -  
Other subsidies and payments 94 89 94
Total gross budgetary expenditures 73,594 37,437 56,846

Fiscal year 2010-2011 (in thousands of dollars)
Less Revenues netted against expenditures: Planned expenditures for the year ending March 31, 2011* Expended during the quarter ended Sept. 30, 2010 Year to date used at quarter-end
Revenues -   -   -  
Total Revenues netted against expenditures -   -   -  
Total net budgetary expenditures 73,594 37,437 56,846


Departmental budgetary expenditures by Standard Object (unaudited) (continued)

Fiscal year 2011-2012 (in thousands of dollars)
Expenditures: Planned expenditures for the year ending March 31, 2012 * Expended during the quarter ended Sept. 30, 2011 Year to date used at quarter-end
Personnel ** 135,966 12,952 119,901
Transportation and communications 26,587 5,898 26,587
Information 15,707 4,613 15,707
Professional and special services 17,121 10,027 17,121
Rentals 19,279 3,588 19,279
Repair and maintenance 2,618 599 2,618
Utilities, materials and supplies 1,940 (7,233) 1,940
Acquisition of land, buildings and works 294 74 294
Acquisition of machinery and equipment 578 421 578
Transfer payments 20,082 423 20,082
Public debt charges -   -   -  
Other subsidies and payments 24 3 24
Total gross budgetary expenditures 240,194 31,365 224,129

Fiscal year 2011-2012 (in thousands of dollars)
Less Revenues netted against expenditures: Planned expenditures for the year ending March 31, 2012 * Expended during the quarter ended Sept. 30, 2011 Year to date used at quarter-end
Revenues -   -   -  
Total Revenues netted against expenditures -   -   -  
Total net budgetary expenditures 240,194 31,365 224,129

* Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect expenditures for the first two quarters only since statutory authorities are granted as expenditures are incurred.

** Personnel expenditures include both Vote 15 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.