Elections Canada Quarterly Financial Report 2015–2016 – For the quarter ended June 30, 2015
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/rpp2015&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 2015-2016 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) result
During the first quarter of 2015-2016, Elections Canada concluded its full readiness activities for the 2015 general election. The agency also initiated the conduct of by-elections called by law on May 3, 2015 for October 19, 2015, in Ottawa West–Nepean, Peterborough and Sudbury. These by-elections have been superseded by the general election, which was called on August 2, 2015 for October 19, 2015.
First quarter year-over-year variance
In the first quarter of 2015-2016, budgetary expenditures totalled $25.6 million compared to $23.2 million in the same period of 2014-2015. (See Figure 1.) The net increase of $2.4 million is largely explained by the following:
- a $3.9 million increase in expenditures (part of "Electoral expenditures" in Table A.1), mainly resulting from electoral readiness activities for the 42nd general election
- a $1.5 million reduction in expenditures (part of "Program expenditures" in Table A.1), mainly resulting from a one-time transition payment in 2014-2015 for implementing pay-in-arrears by the Government of Canada and from the transfer of the Commissioner of Canada Elections to the Office of the Director of Public Prosecutions (ODPP) on October 1, 2014.
Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)*
*Annual authorities for statutory funds reflect expenditures only for the first quarter since statutory authorities are granted as expenditures are incurred.
Click here for a textual description of Figure 1.
Risks and uncertainties
Elections Canada's overall statutory expenditures are guided by the preparations required for the 2015 general election. The work to strengthen the integrity of the electoral system and its administration led to additional expenditures. In this regard, an important driver is the government's recent enactment of electoral reform, which impacts the budget for the general election.
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
No significant changes in relation to operations, personnel or programs occurred during the first quarter of 2015-2016.
Approval by senior officials
Original signed by
Marc Mayrand
Chief Electoral Officer of Canada
Original signed by
Hughes St-Pierre, CPA, CMA
Chief Financial and Planning Officer
Gatineau, Canada
August 28, 2015
Table A.1
Elections Canada
Quarterly financial report
For the quarter ended June 30, 2015
Statement of Authorities (unaudited)
Total available for use for the year ending March 31, 20151 | Used during the quarter ended June 30, 2014 | Year to date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expenditures 2 | 30,538 | 8,539 | 8,539 |
Statutory authorities | |||
Electoral expenditures 3 | 12,914 | 12,914 | 12,914 |
Contributions to employee benefit plans | 1,604 | 1,604 | 1,604 |
Salary of Chief Electoral Officer | 100 | 100 | 100 |
Total Statutory authorities | 14,618 | 14,618 | 14,618 |
Total authorities | 45,156 | 23,157 | 23,157 |
Statement of Authorities (unaudited) (continued)
Total available for use for the year ending March 31, 20161 | Used during the quarter ended June 30, 2015 | Year to date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expenditures2 | 29,205 | 7,043 | 7,043 |
Statutory authorities | |||
Electoral expenditures 3 | 16,500 | 16,500 | 16,500 |
Contributions to employee benefit plans | 1,929 | 1,929 | 1,929 |
Salary of Chief Electoral Officer | 85 | 85 | 85 |
Total Statutory authorities | 18,514 | 18,514 | 18,514 |
Total authorities | 47,719 | 25,557 | 25,557 |
More information is available in Table A.2
1 Budgetary statutory authorities amounts in the "Total available for use for the year ending March 31, 201x" columns reflect first quarter expenditures only since statutory authorities are granted as expenditures are incurred.
2 Program expenditures is an annual appropriation that funds the salaries of Elections Canada's indeterminate emplouees.
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 June 30, 2015
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 20151 | Expended during the quarter ended June 30, 2014 | Year to date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
Personnel2 | 35,238 | 13,239 | 13,239 |
Transportation and communications | 610 | 610 | 610 |
Information | 552 | 552 | 552 |
Professional and special services | 3,580 | 3,580 | 3,580 |
Rentals | 3,058 | 3,058 | 3,058 |
Repair and maintenance | 55 | 55 | 55 |
Utilities, materials and supplies | 194 | 194 | 194 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 242 | 242 | 242 |
Transfer payments | 309 | 309 | 309 |
Public debt charges | - | - | - |
Other subsidies and payments | 1,318 | 1,318 | 1,318 |
Total gross budgetary expenditures | 45,156 | 23,157 | 23,157 |
Less Revenues netted against expenditures: | |||
Revenues | - | - | - |
Total Revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 45,156 | 23,157 | 23,157 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 20161 | Expended during the quarter ended June 30, 2015 | Year to date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
Personnel2 | 36,937 | 14,775 | 14,775 |
Transportation and communications | 1,176 | 1,176 | 1,176 |
Information | 927 | 927 | 927 |
Professional and special services | 3,919 | 3,919 | 3,919 |
Rentals | 3,730 | 3,730 | 3,730 |
Repair and maintenance | 10 | 10 | 10 |
Utilities, materials and supplies | 114 | 114 | 114 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 274 | 274 | 274 |
Transfer payments | 595 | 595 | 595 |
Public debt charges | - | - | - |
Other subsidies and payments | 37 | 37 | 37 |
Total gross budgetary expenditures | 47,719 | 25,557 | 25,557 |
Less Revenues netted against expenditures: | |||
Revenues | - | - | - |
Total Revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 47,719 | 25,557 | 25,557 |
1 Statutory expenditures in the "Planned expenditures for the year ending March 31, 201x" columns reflect first quarter expenditures only since statutory authorities are granted as expenditures are incurred.
2 Personnel expenditures include both Vote 1 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely Budgetary statutory.