Site MenuElections Canada Quarterly Financial Report 2016–2017
For the quarter ended September 30, 2016
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. 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 or by-election or referendum
- administer the political financing provisions of the Canada Elections Act
- monitor compliance with electoral legislation
- conduct public information campaigns on voter registration, voting and becoming a candidate
- conduct education programs for students on the electoral process
- provide support to the independent commissions in charge of adjusting the boundaries of federal electoral districts following each decennial census
- carry out studies on voting and, with the approval of parliamentarians, test alternative voting processes for future use during electoral events
- provide assistance and co-operation in electoral matters to electoral agencies in other countries or to international organizations
A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/rpp2016&document=p2&lang=e.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities (see Table A.1 below) includes the agency's spending authorities granted by Parliament and those used by the agency that are consistent with the Main Estimates for the 2016–2017 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 monies 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. The budgetary statutory authorities amounts presented in the tables below reflect only year-to-date expenditures 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 financial statements, which are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
Highlights of fiscal quarter and fiscal year-to-date (YTD) results
During the second quarter of 2016–2017, Elections Canada initiated a process for asset renewal and the modernization of electoral services.
First two quarters year-over-year variance
In the first two quarters of 2016–2017, budgetary expenditures totalled $46.4 million compared to $110.4 million in the same period of 2015–2016. The net decrease of $64.0 million is largely explained by a decrease of $63.5 million in Electoral expenditures (see Table A.1), which is resulting from a $64.5 million reduction in expenditures associated with the October 2015 general election and an increase of $1.0 million resulting from expenditures associated with asset renewal and modernization of electoral services.
Second quarter year-over-year variance
In the second quarter of 2016–2017, expenditures totalled $21.4 million compared to $84.9 million in the same quarter of 2015–2016. The net decrease of $63.5 million is explained by the same reasons as above.
Figure 1 – First and Second Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
*Annual authorities for statutory funds reflect expenditures only for the first two quarters since statutory authorities are granted as expenditures are incurred. Totals may not match due to rounding, please refer to Tables A.1 and A.2 for details.
Risks and uncertainties
Elections Canada's expenditures are influenced by the frequency, length and number of electoral events (general elections and by-elections) and by infrequent exercises such as referendums and the electoral district boundaries readjustment process. Any of these events can significantly change expenditures from one fiscal year to the next.
Significant changes in relation to operations, personnel and programs
The following appointments have been made during the second quarter:
- Stéphane Perrault – Associate Chief Electoral Officer
- Hughes St-Pierre – Deputy Chief Electoral Officer, Integrated Services, Planning and Public Affairs and Chief Financial Officer
- Jacques Mailloux – Executive Director, Voting Services Modernization, on assignment from his substantive Chief Information Officer position
- Serge Caron – Chief Information Officer for the duration of Mr. Mailloux's assignment
- Lyne Morin – Senior Director, Business Transformation
- Josée Villeneuve – Senior Director, Electoral Integrity
- Vivian Cousineau – Chief Human Resources Officer
Approval by senior officials
Original signed by
Marc Mayrand
Chief Electoral Officer of Canada
Original signed by
Hughes St-Pierre, CPA, CMA
Chief Financial Officer
Gatineau, Canada
November 29, 2016
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended (September 30, 2016)
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2016 Footnote 1 | Used during the quarter ended September 30, 2015 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expendituresFootnote 2 | 30,732 | 6,999 | 14,041 |
| Statutory authorities | |||
| Electoral expendituresFootnote 3 | 92,371 | 75,870 | 92,371 |
| Contributions to employee benefit plans | 3,857 | 1,929 | 3,857 |
| Salary of the Chief Officer | 148 | 63 | 148 |
| Total Statutory authorities | 96,376 | 77,862 | 96,376 |
| Total authorities | 127,108 | 84,861 | 110,417 |
Statement of Authorities (unaudited) (continued)
| Total available for use for the year ending March 31, 2017 Footnote 1 | Used during the quarter ended September 30, 2016 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expendituresFootnote 2 | 30,673 | 6,558 | 13,533 |
| Statutory authorities | |||
| Electoral expendituresFootnote 3 | 29,169 | 13,061 | 29,169 |
| Contributions to employee benefit plans | 3,518 | 1,759 | 3,518 |
| Salary of the Chief Officer | 168 | 61 | 168 |
| Total Statutory authorities | 32,855 | 14,881 | 32,855 |
| Total authorities | 63,528 | 21,439 | 46,388 |
More information is available in Table A.2
Footnote 1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect the first two quarters expenditures only since statutory authorities are granted as expenditures are incurred.
Footnote 2 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's indeterminate employees.
Footnote 3 Electoral expenditures under the statutory authority funds the operating expenditures of the agency and expenditures incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance of the Canada Elections Act.
Table A.2
Elections Canada
Quarterly financial report
For the quarter ended September 30, 2016
Departmental budgetary expenditures by Standard Object (unaudited)
| Planned expenditures for the year ending March 31, 2016 Footnote 1 | Expended during the quarter ended September 30, 2015 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| PersonnelFootnote 2 | 82,448 | 50,982 | 65,757 |
| Transportation and communications | 4,869 | 3,693 | 4,869 |
| Information | 1,806 | 879 | 1,806 |
| Professional and special services | 12,097 | 8,178 | 12,097 |
| Rentals | 20,557 | 16,827 | 20,557 |
| Repair and maintenance | 123 | 112 | 123 |
| Utilities, materials and supplies | 3,511 | 3,397 | 3,511 |
| Acquisition of land, buildings and works | 17 | 17 | 17 |
| Acquisition of machinery and equipment | 409 | 135 | 409 |
| Transfer payments | 1,234 | 640 | 1,234 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 37 | 1 | 37 |
| Total gross budgetary expenditures | 127,108 | 84,861 | 110,417 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 127,108 | 84,861 | 110,417 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
| Planned expenditures for the year ending March 31, 2017 Footnote 1 | Expended during the quarter ended September 30, 2016 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| PersonnelFootnote 2 | 43,566 | 12,715 | 26,426 |
| Transportation and communications | 2,026 | 1,067 | 2,026 |
| Information | 386 | 253 | 386 |
| Professional and special services | 9,840 | 5,847 | 9,840 |
| Rentals | 4,595 | 2,713 | 4,595 |
| Repair and maintenance | 2 | (17) | 2 |
| Utilities, materials and supplies | 119 | 6 | 119 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 324 | 287 | 324 |
| Transfer payments | 2,626 | (1,462) | 2,626 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 44 | 30 | 44 |
| Total gross budgetary expenditures | 63,528 | 21,439 | 46,388 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 63,528 | 21,439 | 46,388 |
Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first two quarters expenditures only since statutory authorities are granted as expenditures are incurred.
Footnote 2 Personnel expenditures include both Vote 1 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.