Office of The Chief Electoral Officer
Quarterly Financial Report 2019–2020
For the quarter ended December 31, 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.
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 third quarter of 2019–2020, the agency conducted the 43rd general election on October 21, 2019.
First three quarters year-over-year variance
In the first three quarters of 2019–2020, budgetary expenditures totalled $423.2 million compared to $115.1 million in the same period of 2018–2019. The net increase of $308.1 million is explained by:
- a net increase of $303.4 million in electoral expenditures and employee benefit plans (see Table A.1), which is largely explained by a $315.4 million net increase in expenditures for the 2019 general election, an increase of $2.2 million due to the administrative reintegration of the Office of the Commissioner of Canada Elections, and a decrease of $14.2 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 $4.7 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, and the coming into force of the Elections Modernization Act and An Act to amend the Canada Elections Act (political financing).
Third quarter year-over-year variance
In the third quarter of 2019–2020, budgetary expenditures totalled $296.7 million compared to $45.1 million in the same period of 2018–2019. The net increase of $251.6 million is largely explained by the reasons stated above.
Figure 1 – First Three Quarters' Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
*Annual authorities for statutory funds reflect expenditures only for the first, second and third 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 agency is continually updating its corporate risk framework and monitoring the risk environment and has identified the risks that:
- serious security and cyber-security issues will compromise the agency's services along with the privacy of Canadians and their trust and ability to participate in the electoral process;
- inaccurate information will compromise electors' ability to vote and trust in the electoral process or system or the correctness of results;
- the demands of a minority government context will hinder the agency's ability to deliver on longer term strategies, thereby, limiting the agency's ability to meet the needs of Canadians; and
- a general election will be called before the agency completes its return to readiness activities, which may result in a decrease in services and the quality of election delivery and an increase in the required costs and efforts.
The agency has undertaken actions to mitigate these risks.
Significant changes in relation to operations, personnel and programs
The 43rd general election was held on October 21, 2019. In order to serve 27.4 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 230,000 election workers to conduct the election across the country.
Approval by senior officials
Original signed by:
Stéphane Perrault Chief Electoral Officer Gatineau, Canada February 28, 2020
Hughes St-Pierre, CPA, CMA Chief Financial Officer
Table A.1
OFFICE OF THE CHIEF ELECTORAL OFFICER
Quarterly financial report
For the quarter ended December 31, 2019
Statement of Authorities (unaudited)
Total available for use for the year ending March 31, 2019Footnote 1 | Used during the quarter ended December 31, 2018 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expendituresFootnote 2 | 32,504 | 8,210 | 23,024 |
Statutory authorities | |||
Electoral expendituresFootnote 3 | 85,347 | 34,605 | 85,347 |
Contributions to employee benefit plans | 6,436 | 2,145 | 6,436 |
Salary of the Chief Electoral Officer | 268 | 87 | 268 |
Collection agency fees under section 17.1 of the Financial Administration Act | 1 | - | 1 |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 11 | 11 | 11 |
Total statutory authorities | 92,063 | 36,848 | 92,063 |
Total authorities | 124,567 | 45,058 | 115,087 |
Statement of Authorities (unaudited) (continued)
Total available for use for the year ending March 31, 2020Footnote 1 | Used during the quarter ended December 31, 2019 | Year-to-date used at quarter-end | |
---|---|---|---|
Vote 1 – Program expendituresFootnote 2 | 42,688 | 10,388 | 27,756 |
Statutory authorities | |||
Electoral expendituresFootnote 3 | 385,726 | 283,065 | 385,726 |
Contributions to employee benefit plans | 9,468 | 3,156 | 9,468 |
Salary of the Chief Electoral Officer | 231 | 88 | 231 |
Collection agency fees under section 17.1 of the Financial Administration Act | - | - | - |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | - | - | - |
Total statutory authorities | 395,425 | 286,309 | 395,425 |
Total authorities | 438,113 | 296,697 | 423,181 |
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, 201x" columns reflect first three quarters expenditures only, since statutory authorities are granted as expenditures are incurred.
Return to source of Footnote 2 Program expenditures is an annual appropriation that funds the salaries of the Office of the Chief Electoral Officer's indeterminate employees.
Return to source of 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 and enforcing the Canada Elections Act.
Table A.2
Office of the Chief Electoral Officer
Quarterly financial report
For the quarter ended December 31, 2019
Departmental budgetary expenditures by Standard Object (unaudited)
Planned expenditures for the year ending March 31, 2019Footnote 1 | Expended during the quarter ended December 31, 2018 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
PersonnelFootnote 2 | 66,577 | 22,596 | 57,097 |
Transportation and communications | 5,287 | 2,525 | 5,287 |
Information | 2,867 | 1,627 | 2,867 |
Professional and special services | 33,510 | 10,186 | 33,510 |
Rentals | 11,125 | 5,545 | 11,125 |
Repair and maintenance | 424 | 157 | 424 |
Utilities, materials and supplies | 795 | 264 | 795 |
Acquisition of land, buildings and works | - | - | - |
Acquisition of machinery and equipment | 2,934 | 2,101 | 2,934 |
Transfer payments | 1,014 | 44 | 1,014 |
Public debt charges | - | - | - |
Other subsidies and payments | 34 | 13 | 34 |
Total gross budgetary expenditures | 124,567 | 45,058 | 115,087 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 124,567 | 45,058 | 115,087 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
Planned expenditures for the year ending March 31, 2020Footnote 1 | Expended during the quarter ended December 31, 2019 | Year-to-date used at quarter-end | |
---|---|---|---|
Expenditures: | |||
PersonnelFootnote 2 | 267,404 | 185,890 | 252,472 |
Transportation and communications | 36,450 | 32,270 | 36,450 |
Information | 11,586 | 5,296 | 11,586 |
Professional and special services | 34,344 | 14,232 | 34,344 |
Rentals | 56,885 | 31,822 | 56,885 |
Repair and maintenance | 453 | 212 | 453 |
Utilities, materials and supplies | 10,640 | 9,048 | 10,640 |
Acquisition of land, buildings and works | 13 | 13 | 13 |
Acquisition of machinery and equipment | 2,587 | 1,161 | 2,587 |
Transfer payments | 17,719 | 16,744 | 17,719 |
Public debt charges | - | - | - |
Other subsidies and payments | 32 | 9 | 32 |
Total gross budgetary expenditures | 438,113 | 296,697 | 423,181 |
Less revenues netted against expenditures: | |||
Revenues | - | - | - |
Total revenues netted against expenditures: | - | - | - |
Total net budgetary expenditures | 438,113 | 296,697 | 423,181 |
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.