Site MenuElections Canada Quarterly Financial Report 2013–2014 – For the quarter ended December 31, 2013
Statement outlining results, risks and significant
changes in operations, personnel and programs
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 as well as Canada's Economic Action Plan 2012 (Budget 2012). This quarterly report has not been subject to an external audit or review.
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:
- be prepared to conduct a federal general election, by-election or referendum
- administer the political financing provisions of the Canada Elections Act
- monitor compliance with and enforce electoral legislation
- carry out investigations into allegations that would amount to offences under the Act
- conduct voter education and information programs
- provide support to the independent commissions in charge of adjusting the boundaries of federal electoral districts following each decennial census
- carry out studies on alternative voting methods and, with the approval of parliamentarians, test online voting processes for future use during electoral events
Summary description of the agency's programs
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 2013–2014 fiscal year as well as Canada's Economic Action Plan 2012 (Budget 2012). 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. Budgetary statutory authorities amounts presented in the tables below reflect year-to-date expenditures only since statutory authorities are granted as expenditures are incurred.
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.
As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, 2012, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012–2013 Main Estimates.
In fiscal year 2012–2013, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013–2014, the changes to departmental authorities were reflected in the 2013–2014 Main Estimates tabled in Parliament.
Highlights of fiscal quarter and fiscal year-to-date (YTD) results
During the third quarter of 2013–2014, Elections Canada initiated the implementation of the new federal electoral district boundaries and completed its office move to its new location in Gatineau, Quebec. The agency also continued its projects to improve services to electors, such as modernizing the field voter registration system and re-engineering voting operations.
First three quarters year-over-year variance
In the first three quarters of 2013–2014, budgetary expenditures totalled $77.2 million, compared to $73.9 million in the same period of 2012–2013. (See Figure 1.) The net increase of $3.3 million is explained as follows:
- a $9.6 million increase as the agency completed the office consolidation project and began to implement the new electoral boundaries;
- a $2.6 million increase in salaries and benefits for payments required under the provisions of the Work Force Adjustment Directive and severance payments as well as a timing difference in Employee Benefit Plans disbursements;
- a $4.4 million reduction largely due to the phasing out of the quarterly allowances paid to parties; and
- a $4.5 million reduction as the 10 electoral boundaries commissions concluded the redistribution of the electoral districts.
Third quarter year-over-year variance
Budgetary expenditures in the third quarter of 2013–2014 totalled $33.8 million, compared to $29.3 million in the same quarter of 2012–2013. The $4.5 million net increase is explained as follows:
- a $7.5 million increase as the agency completed the office consolidation project, began to implement the new electoral boundaries and conducted four by-elections;
- a $1.0 million increase in salaries and benefits for payments required under the provisions of the Work Force Adjustment Directive and severance payments as well as a timing difference in Employee Benefit Plans disbursements;
- a $2.1 million reduction as the 10 electoral boundaries commissions concluded the redistribution of the electoral districts; and
- a $1.9 million reduction due to the phasing out of the quarterly allowances paid to parties.
Figure 1 – First, Second and Third Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)*
*Annual authorities for statutory funds reflect expenditures for the first three quarters only since statutory authorities are granted as expenditures are incurred.
Textual description of Figure 1
Risks and uncertainties
Risks resulting from the cost-containment measures flowing from the March 2010 federal budget added budgetary pressures to Elections Canada's appropriation. To address these pressures, the agency completed a zero-based budgeting review in 2012–2013 and, as a result, reallocated resources to its highest priorities. It also implemented workforce adjustment measures to eliminate 32 encumbered indeterminate positions. These measures aimed to ensure that Elections Canada can manage within its annual appropriation for the foreseeable future.
Elections Canada's overall statutory expenditures are guided by the preparations required for the 2015 general election. The work flowing from the two recently published reports to strengthen the integrity of the electoral system and its administration will lead to additional expenditures. In this regard, an important driver is the introduction of electoral reform by the government, which requires the agency to review its operating budget, including its appropriation, in future years.
Elections Canada's expenditures are influenced by the frequency and number of electoral events (general elections, by-elections) and by infrequent exercises such as referendums and the electoral district boundaries readjustment process. 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 previously, Elections Canada consolidated its offices in Gatineau, Quebec.
Effective October 21, 2013, Mr. Jacques Mailloux was appointed Chief Information Officer.
Budget 2012 implementation
This section provides an overview of the savings measures announced in Budget 2012 that are being implemented in order to refocus government and programs; make it easier for Canadians and business to deal with their government; and, modernize and reduce the back office.
Elections Canada has responded to the spirit of the federal government's deficit reduction action plan. The agency has reduced its annual operating budget by $7.5 million, or 8 percent, starting in 2012–2013. In making these reductions, the agency has not included expenditures that fall outside its annual operating budget – namely, those related to transfer payments required by statute, the delivery of electoral events, the readjustment of electoral boundaries and the relocation of Elections Canada's offices to Gatineau. As the reductions are applied only to the agency's operating budget, reductions in authorities and expenditures are not readily apparent when comparing year over year for these reasons: fluctuations of non-operating expenditures (as mentioned above), timing differences and expenditure trends related to the four year election cycle.
Elections Canada has applied the budget reductions as follows:
The agency has reduced the budget available to programs for time-limited initiatives. This has reduced the financial resources available for renewing infrastructure and carrying out initiatives aimed at improving election administration and programs. Some examples of initiatives that have been delayed or postponed include the modernization of nomination processes for candidates, the advertising program aimed at youth and readiness activities for referendums.
The agency has also extended the time frame for the development and delivery of various other programs and corporate initiatives.
In addition, the agency has required programs to take a variety of measures to achieve efficiencies and absorb maintenance costs for recently delivered information technology (IT) applications. This has allowed the agency to reduce hardware and software maintenance costs – for example, by reviewing service agreements, optimizing resources by restructuring IT support and reducing support costs by establishing a new IT service model.
Approval by senior officials
Marc Mayrand
Chief Electoral Officer of Canada
Hughes St-Pierre, MA, CMA
Acting Chief Financial and Planning Officer
Ottawa, Canada
February 19, 2014
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2013
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2013 Footnote 1, Footnote 2 |
Used during the quarter ended December 31, 2012 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 15 – Program expenditures Footnote 3 | 31,174 | 7,140 | 21,146 |
| Statutory authorities | |||
| Electoral expenditures Footnote 4 | 43,088 | 18,418 | 43,088 |
| Contributions to employee benefit plans | 3,894 | 1,298 | 3,894 |
| Expenditures under Electoral Boundaries Reajustment Act | 5,515 | 2,328 | 5,515 |
| Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 5 | - | 5 |
| Salary of Chief Electoral Officer | 216 | 73 | 216 |
| Total statutory authorities | 52,718 | 22,117 | 52,718 |
| Total authorities | 83,892 | 29,257 | 73,864 |
Statement of Authorities (unaudited) (continued)
| Total available for use for the year ending March 31, 2014 Footnote 1, Footnote 2 |
Used during the quarter ended December 31, 2013 |
Year to date used at quarter-end | |
|---|---|---|---|
| Vote 15 – Program expenditures Footnote 3 | 31,556 | 7,491 | 22,735 |
| Statutory authorities | |||
| Electoral expenditures Footnote 4 | 48,290 | 24,306 | 48,290 |
| Contributions to employee benefit plans | 4,969 | 1,656 | 4,969 |
| Expenses under Electoral Boundaries Reajustment Act | 981 | 239 | 981 |
| Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 4 | 2 | 4 |
| Salary of Chief Electoral Officer | 224 | 76 | 224 |
| Total statutory authorities | 54,468 | 26,279 | 54,468 |
| Total authorities | 86,024 | 33,770 | 77,203 |
More information is available in Table A.2
Return to source of Footnote 1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31" columns reflect the first three quarter expenditures only since statutory authorities are granted as expenditures are incurred.
Return to source of Footnote 2 Total available for use does not reflect measures announced in Budget 2012.
Return to source of Footnote 3 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's permanent staff.
Return to source of Footnote 4 Electoral expenditures under the statutory authority funds the operating expenditures of the agency and the additional expenditures incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and enforcing the Canada Elections Act.
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2013
Departmental Budgetary Expenditures by Standard Object (unaudited)
| Planned expenditures for the year ended March 31, 2013 Footnote 1 |
Expended during the quarter ended December 31, 2012 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures | |||
| Personnel Footnote 2 | 44,770 | 12,615 | 34,741 |
| Transportation and communications | 2,688 | 1,184 | 2,688 |
| Information | 2,518 | 1,170 | 2,518 |
| Professional and special services | 15,144 | 6,373 | 15,144 |
| Rentals | 3,204 | 1,454 | 3,204 |
| Repair and maintenance Footnote 3 | 2,569 | 271 | 2,569 |
| Utilities, materials and supplies | 288 | 160 | 288 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 459 | 268 | 459 |
| Transfer payments | 12,252 | 5,762 | 12,252 |
| Public debt charges | - | - | - |
| Other subsidies and payments | - | - | - |
| Total gross budgetary expenditures | 83,892 | 29,257 | 73,863 |
| Less Revenues netted against expenditures | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures | - | - | - |
| Total net budgetary expenditures | 83,892 | 29,257 | 73,863 |
Departmental Budgetary Expenditures by Standard Object (unaudited) (continued)
| Planned expenditures for the year ended March 31, 2014 Footnote 1 |
Expended during the quarter ended December 30, 2013 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures | |||
| Personnel Footnote 2 | 45,995 | 13,493 | 37,174 |
| Transportation and communications | 2,037 | 1,054 | 2,037 |
| Information | 1,846 | 1,234 | 1,846 |
| Professional and special services | 15,563 | 6,388 | 15,563 |
| Rentals | 4,649 | 3,198 | 4,649 |
| Repair and maintenance Footnote 3 | 5,838 | 3,171 | 5,838 |
| Utilities, materials and supplies | 271 | 152 | 271 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 701 | 390 | 701 |
| Transfer payments | 8,369 | 3,940 | 8,369 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 755 | 750 | 755 |
| Total gross budgetary expenditures | 86,024 | 33,770 | 77,203 |
| Less Revenues netted against expenditures | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures | - | - | - |
| Total net budgetary expenditures | 86,024 | 33,770 | 77,203 |
Due to rounding, figures may not add to the totals shown
Return to source of Footnote 1 Statutory expenditures in the "Planned expenditures for the years ended March 31" columns reflect expenditures for the first three quarters only since statutory authorities are granted as expenditures are incurred.
Return to source of Footnote 2 Personnel expenditures include both Vote 15 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.
Return to source of Footnote 3 The significant increase in expenditures is due to the office consoliation project.