Office of The Chief Electoral Officer
Quarterly Financial Report 2019–2020
For the quarter ended September 30, 2019
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 financial report should be read in conjunction with the Main Estimates. This quarterly financial report has not been subject to an external audit or review.
This quarterly report addresses the financial reporting requirements of both Elections Canada (EC) and the Commissioner of Canada Elections (CCE), referred to hereafter as the Office of the Chief Electoral Officer (OCEO).
A summary description of the agency's programs can be found at www.elections.ca/content.aspx?section=res&dir=rep/rpp/dp2019&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 2019-2020 fiscal year. This quarterly financial 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 the OCEO, 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.
The OCEO 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 results
During the second quarter of 2019–2020, the agency concluded its preparatory activities and initiated the conduct of the 43rd general election called on September 11, 2019 for a polling day of October 21, 2019.
First two quarters year-over-year variance
In the first two quarters of 2019–2020, budgetary expenditures totalled $126.5 million compared to $70.0 million in the same period of 2018–2019. The net increase of $56.5 million is explained by:
- a net increase of $53.9 million in electoral expenditures and employee benefit plans (see Table A.1), which is largely explained by a $61.4 million increase in expenditures for the 2019 general election, a $1.5 million increase due to a timing difference in the payment of office rent, and a decrease of $9.0 million on investments in asset renewal and modernization of electoral services, as most projects have been completed in the last fiscal year; and
- an increase of $2.6 million in program expenditures (see Table A.1), mainly as a result of the salaries for the newly hired indeterminate employees following the implementation of Budget 2018 measures on Rebalancing Elections Canada's Expenditures, as well as C-76 and C-50.
Second quarter year-over-year variance
In the second quarter of 2019–2020, budgetary expenditures totalled $87.5 million compared to $40.9 million in the same period of 2018–2019. The net increase of $46.7 million is largely explained by the same reasons as above.
Figure 1 – First Two Quarters' Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
*Annual authorities for statutory funds reflect expenditures only for the first and second quarters, since statutory authorities are granted as expenditures are incurred. Please refer to Tables A.1 and A.2 for details.
Risks and uncertainties
The OCEO'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.
The OCEO is continually updating its corporate risk framework and monitoring the risk environment. The OCEO has identified electoral integrity and security issues, specifically during the general election, as the key risks to delivering on its mandate in 2019–2020. These risks may compromise the privacy of Canadians and their trust and ability to participate in the electoral process. The agency has undertaken actions to mitigate these potential risks.
Significant changes in relation to operations, personnel and programs
The 43rd general election was called on September 11, 2019, with a polling day of Monday, October 21, 2019. In order to serve 24.7 million Canadian electors, Elections Canada opened over 500 offices across the country and secured some 20,000 polling places. Returning officers in Canada's 338 electoral districts hired some 300,000 election workers to conduct the election across the country.
Approval by senior officials
Original signed by:
Stéphane Perrault
Chief Electoral Officer
Gatineau, Canada
November 29, 2019
Hughes St-Pierre, CPA, CMA
Chief Financial Officer
Table A.1
Office of The Chief Electoral Officer
Quarterly financial report
For the quarter ended September 30, 2019
Statement of Authorities (unaudited)
Total available for use for the year ending March 31, 2019Footnote 1 | Used during the quarter ended September 30, 2018 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expendituresFootnote 2 | 31,951 | 7,351 | 14,814 |
Statutory authorities | |||
Electoral expendituresFootnote 3 | 50,743 | 31,240 | 50,743 |
Contributions to employee benefit plans | 4,291 | 2,146 | 4,291 |
Salary of the Chief Electoral Officer | 181 | 126 | 181 |
Collection agency fees under section 17.1 of the Financial Administration Act | 1 | - | 1 |
Total statutory authorities | 55,216 | 33,512 | 55,216 |
Total authorities | 87,167 | 40,863 | 70,030 |
Statement of Authorities (unaudited) (continued)
Total available for use for the year ending March 31, 2020Footnote 1 | Used during the quarter ended September 30, 2019 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expendituresFootnote 2 | 41,543 | 8,940 | 17,368 |
Statutory authorities | |||
Electoral expendituresFootnote 3 | 102,661 | 75,361 | 102,661 |
Contributions to employee benefit plans | 6,312 | 3,156 | 6,312 |
Salary of the Chief Electoral Officer | 143 | 76 | 143 |
Collection agency fees under section 17.1 of the Financial Administration Act | - | - | - |
Total statutory authorities | 109,116 | 78,593 | 109,116 |
Total authorities | 150,659 | 87,533 | 126,484 |
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 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 the Office of the Chief Electoral Officer'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 with the Canada Elections Act.
Table A.2
Office of The Chief Electoral Officer
Quarterly financial report
For the quarter ended September 30, 2019
Departmental budgetary expenditures by Standard Object (unaudited)
Planned expenditures for the year ending March 31, 2019Footnote 1 | Expended during the quarter ended September 30, 2018 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
PersonnelFootnote 2 | 51,638 | 17,692 | 34,501 |
Transportation and communications | 2,762 | 1,415 | 2,762 |
Information | 1,240 | 795 | 1,240 |
Professional and special services | 23,325 | 17,294 | 23,325 |
Rentals | 5,581 | 2,304 | 5,581 |
Repair and maintenance | 267 | 14 | 267 |
Utilities, materials and supplies | 531 | 310 | 531 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 832 | 664 | 832 |
Transfer payments | 970 | 366 | 970 |
Public debt charges | - | - | - |
Other subsidies and payments | 21 | 9 | 21 |
Total gross budgetary expenditures | 87,167 | 40,863 | 70,030 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 87,167 | 40,863 | 70,030 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 2020Footnote 1 | Expended during the quarter ended September 30, 2019 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
PersonnelFootnote 2 | 90,757 | 44,982 | 66,582 |
Transportation and communications | 4,180 | 2,860 | 4,180 |
Information | 6,290 | 3,729 | 6,290 |
Professional and special services | 20,112 | 13,749 | 20,112 |
Rentals | 25,063 | 19,805 | 25,063 |
Repair and maintenance | 241 | 166 | 241 |
Utilities, materials and supplies | 1,592 | 713 | 1,592 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 1,426 | 1,193 | 1,426 |
Transfer payments | 975 | 327 | 975 |
Public debt charges | - | - | - |
Other subsidies and payments | 23 | 9 | 23 |
Total gross budgetary expenditures | 150,659 | 87,533 | 126,484 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 150,659 | 87,533 | 126,484 |
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.