Site MenuElections Canada Quarterly Financial Report 2017–2018
For the quarter ended December 31, 2017
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, 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 alternative voting methods 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/dp2017&document=p2&lang=e.
Basis of presentation
This quarterly financial 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 2017-2018 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 financial statements that are part of the departmental results 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 first three quarters of 2017-2018, Elections Canada conducted 11 by-elections and continued its process for asset renewal and electoral services modernization.
First three quarters year-over-year variance
In the first three quarters of 2017-2018, budgetary expenditures totalled $86.8 million compared to $68.4 million in the same period of 2016-2017. The net increase of $18.4 million is explained by:
- an increase of $15.2 million in Electoral expenditures (see Table A.1), which is largely explained by a $6.0 million increase resulting from the conduct of 11 by-elections, a $5.8 million increase in investment in asset renewal and modernisation of electoral services, a $2.1 million increase due to a timing difference in the payment of office rent, and a $1.3 million increase from the payment of retroactive salary to term employees following the recent signing of new collective agreements; and
- an increase of $3.2 million in Program expenditures (see Table A.1), which is largely explained by the payment of retroactive salary to indeterminate employees following the recent signing of new collective agreements and vacant positions having been filled.
Third quarter year-over-year variance
In the third quarter of 2017-2018, budgetary expenditures totalled $31.0 million compared to $22.0 million in the same period of 2016-2017. The net increase of $9.0 million is explained by:
- an increase of $8.4 million in Electoral expenditures (see Table A.1), which is largely explained by a $3.8 million increase for the conduct of six by-elections, a $2.9 million increase in operating expenditures, a $900 thousand increase in asset renewal and modernization of electoral services, a $700 thousand increase due to a timing difference in the payment of office rent; and
- an increase of $650 thousand in Program expenditures (see Table A.1), resulting mainly from vacant indeterminate employee positions having been filled.
Figure 1 – First, Second and Third Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
*Annual authorities for statutory funds reflect expenditures only for the first three quarters since statutory authorities are granted as expenditures are incurred. 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.
Public Services and Procurement Canada (PSPC) has implemented a new pay system as part of the pay transformation initiative. The implementation of Phoenix was a major undertaking and is facing challenges. PSPC continues to lead a significant effort to address the issues, and to see progress as it works closely with all departments and agencies. Despite these efforts, there are unrecorded transactions related to the pay system which are not reflected in the expenditure to date for the period covered.
Significant changes in relation to operations, personnel and programs
No significant changes in relation to operations, personnel or programs occurred during the third quarter of 2017-2018.
Approval by senior officials
Stéphane Perrault
Acting Chief Electoral Officer
Gatineau, Canada
March 1, 2018
Hughes St-Pierre, CPA, CMA
Chief Financial Officer
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2017
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2017Footnote 1 | Used during the quarter ended December 31, 2016 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expendituresFootnote 2 | 30,714 | 6,886 | 20,419 |
| Statutory authorities | |||
| Electoral expendituresFootnote 3 | 42,491 | 13,322 | 42,491 |
| Contributions to employee benefit plans | 5,277 | 1,759 | 5,277 |
| Salary of the Chief Electoral Officer | 233 | 65 | 233 |
| Total Statutory authorities | 48,001 | 15,146 | 48,001 |
| Total authorities | 78,715 | 22,032 | 68,420 |
Statement of Authorities (unaudited) (continued)
| Total available for use for the year ending March 31, 2018Footnote 1 | Used during the quarter ended December 31, 2017 | Year to date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expendituresFootnote 2 | 32,302 | 7,536 | 23,663 |
| Statutory authorities | |||
| Electoral expendituresFootnote 3 | 58,103 | 21,809 | 58,103 |
| Contributions to employee benefit plans | 5,089 | 1,696 | 5,089 |
| Salary of the Chief Electoral Officer | - | - | - |
| Total Statutory authorities | 63,192 | 23,505 | 63,192 |
| Total authorities | 95,494 | 31,041 | 86,855 |
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 first three 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 Under the Statutory authority, Electoral expenditures funds the operating expenditures of the agency and those incurred in preparing and conducting elections, reimbursing election expenses to eligible candidates and parties, and monitoring compliance to the Canada Elections Act.
Table A.2
Elections Canada
Quarterly financial report
For the quarter ended December 31, 2017
Departmental budgetary expenditures by Standard Object (unaudited)
| Planned expenditures for the year ending March 31, 2017Footnote 1 | Expended during the quarter ended December 31, 2016 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| PersonnelFootnote 2 | 49,573 | 12,852 | 39,278 |
| Transportation and communications | 3,319 | 1,293 | 3,319 |
| Information | 729 | 343 | 729 |
| Professional and special services | 15,009 | 5,169 | 15,009 |
| Rentals | 6,404 | 1,809 | 6,404 |
| Repair and maintenance | 22 | 20 | 22 |
| Utilities, materials and supplies | 263 | 144 | 263 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 471 | 147 | 471 |
| Transfer payments | 2,702 | 76 | 2,702 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 223 | 179 | 223 |
| Total gross budgetary expenditures | 78,715 | 22,032 | 68,420 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 78,715 | 22,032 | 68,420 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
| Planned expenditures for the year ending March 31, 2018Footnote 1 | Expended during the quarter ended December 31, 2017 | Year to date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| PersonnelFootnote 2 | 58,036 | 17,345 | 49,397 |
| Transportation and communications | 4,033 | 1,927 | 4,033 |
| Information | 1,351 | 334 | 1,351 |
| Professional and special services | 19,071 | 7,644 | 19,071 |
| Rentals | 9,224 | 3,076 | 9,224 |
| Repair and maintenance | 238 | 173 | 238 |
| Utilities, materials and supplies | 810 | 174 | 810 |
| Acquisition of land, buildings and works | 4 | - | 4 |
| Acquisition of machinery and equipment | 1,032 | 438 | 1,032 |
| Transfer payments | 1,674 | (54) | 1,674 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 21 | (16) | 21 |
| Total gross budgetary expenditures | 95,494 | 31,041 | 86,855 |
| Less Revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total Revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 95,494 | 31,041 | 86,855 |
Footnote 1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first three 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.