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Quarterly Financial Report 2020–2021
For the quarter ended June 30, 2020
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). For more information, see the Significant changes in relation to operations, personnel and programs section.
A summary description of the agency's programs can be found here
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 2020–2021 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 first quarter of 2020–2021, the agency continued to administer its post-electoral activities following the 43rd general election, held on October 21, 2019.
A decrease of $12 million in the authorities available for use is due to the reduced supply of the Main Estimates. Due to the COVID-19 pandemic and limited sessions in the spring for Parliament to study supply, the Standing Orders of the House of Commons were amended to extend the study period into the fall. The Office of the Chief Electoral Officer is expected to receive full supply for the 2020-21 Main Estimates in December 2020.
First quarter year-over-year variance
In the first quarter of 2020–2021, budgetary expenditures totalled $28.6 million compared to $39.0 million in the same period of 2019–2020. The net decrease of $10.4 million is explained by:
- a decrease of $12.9 million in electoral expenditures and employee benefit plans (see Table A.1), which is largely explained by a $10.1 million decrease in expenditures for activities related to the 2019 general election, a $1.1 million decrease due to a timing difference in the payment of office rent, a decrease of $0.9 million due to not conducting any by-elections (instead of one during the same period in 2019–2020), and a decrease of $0.8 million on investments in asset renewal and modernization of electoral services, as most projects of this cycle have been completed in the last fiscal year; and
- an increase of $2.5 million in program expenditures (see Table A.1), which is largely explained by a $2.0 million increase for filling vacant positions resulting from the implementation of Bill C-76 and a $0.5 million increase due to the transfer of the Commissioner of Canada Elections from the Director of Public Prosecutions.
Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
[Text version of] "Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)"
Figure 1 – First Quarter Expenditures Compared to Annual Authorities (Appropriation and Statutory Authority)
The bar graph shows a comparison of annual authorities and first quarter expenditures for 2019–2020 and 2020–2021 (in thousands of dollars).
- 2019-2020: annual authorities of $70,416; first quarter expenditures of $38,951.
- 2020-2021: annual authorities of $53,827; first quarter expenditures of $28,538.
*Annual authorities for statutory funds reflect expenditures only for the first quarter, 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 following risks:
- Security: There is a risk that serious security and cyber-security issues compromise EC's services, privacy of Canadians and their trust and ability to participate in the electoral process.
- Integrity: There is a risk that inaccurate information will compromise electors' ability to vote and/or their trust in the electoral process or the correctness of results.
- Early Election: There is a risk that a general election is called before Elections Canada completes its return to readiness activities which may result in a decrease in services and quality of election delivery and an increase in costs and efforts required.
- Long-Term Strategy: There is a risk that current environment (minority government and COVID-19) hinder the agency's ability to deliver on longer term strategies thereby limiting the agency's ability to meet the needs of Canadians.
- COVID-19 Outbreak: There is a risk that pandemic considerations change how elections are conducted in Canada and impact elector or worker behaviours.
- COVID-19 Recovery Plan: There is a risk that Elections Canada personnel contract COVID-19 in the preparation phase or during the election resulting in delays in election delivery activities and increased fear and uncertainty around election services.
The agency has undertaken actions to mitigate these risks, including closely monitoring the COVID-19 outbreak and its impact. As part of its ongoing readiness planning, the agency is working on a new operational approach to deliver an election in the context of a pandemic and post-pandemic.
Significant changes in relation to operations, personnel and programs
As part of the agency's Strategic Review, the implementation of the Organizational Structure Review took place. Among these changes are the transfer of parliamentary affairs and policy functions from Policy and Public Affairs to Regulatory Affairs and the transfer of internal audit and evaluation functions from Regulatory Affairs to the Chief Planning Officer.
The agency's first priority remains the health and safety of its staff. Several measures have already been put in place, including telework for all employees, except in some cases for those who perform critical services. That said, telework is not without its challenges and the agency continues to implement flexible and adaptable work arrangements and policies to support its workforce.
Effective April 1, 2020, Robert Ashton was appointed Senior Director, Procurement, Facilities and Workplace Innovation.
Approval by senior officials
Original signed by:
Stéphane Perrault
Chief Electoral Officer
Marc Limoges
Acting Chief Financial Officer
Gatineau, Canada
August 29, 2020
Table A.1
Office of the chief electoral officer
Quarterly financial report
For the quarter ended June 30, 2020
Statement of Authorities (unaudited)
| Total available for use for the year ending March 31, 2020 footnote 1 | Used during the quarter ended June 30, 2019 | Year-to-date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expenditures footnote 2 | 39,893 | 8,428 | 8,428 |
| Statutory authorities | |||
| Electoral expenditures footnote 3 | 27,300 | 27,300 | 27,300 |
| Contributions to employee benefit plans | 3,156 | 3,156 | 3,156 |
| Salary of the Chief Electoral Officer | 67 | 67 | 67 |
| Collection agency fees under section 17.1 of the Financial Administration Act | - | - | - |
| Total statutory authorities | 30,523 | 30,523 | 30,523 |
| Total authorities | 70,416 | 38,951 | 38,951 |
Statement of Authorities (unaudited) (continued)
| Total available for use for the year ending March 31, 2021 note 1 | Used during the quarter ended June 30, 2020 | Year-to-date used at quarter-end | |
|---|---|---|---|
| Vote 1 – Program expenditures note 2 | 36,169 | 10,880 | 10,880 |
| Statutory authorities | |||
| Electoral expenditures note 3 | 15,115 | 15,115 | 15,115 |
| Contributions to employee benefit plans | 2,477 | 2,477 | 2,477 |
| Salary of the Chief Electoral Officer | 66 | 66 | 66 |
| Collection agency fees under section 17.1 of the Financial Administration Act | - | - | - |
| Total statutory authorities | 17,658 | 17,658 | 17,658 |
| Total authorities | 53,827 | 28,538 | 28,538 |
More information is available in Table A.2.
Footnotes
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 quarter 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, 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 June 30, 2020
Departmental budgetary expenditures by Standard Object (unaudited)
| Planned expenditures for the year ending March 31, 2020 footnote 1 | Expended during the quarter ended June 30, 2019 | Year-to-date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| Personnel footnote 2 | 53,065 | 21,600 | 21,600 |
| Transportation and communications | 1,320 | 1,320 | 1,320 |
| Information | 2,561 | 2,561 | 2,561 |
| Professional and special services | 6,363 | 6,363 | 6,363 |
| Rentals | 5,258 | 5,258 | 5,258 |
| Repair and maintenance | 75 | 75 | 75 |
| Utilities, materials and supplies | 879 | 879 | 879 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 233 | 233 | 233 |
| Transfer payments | 648 | 648 | 648 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 14 | 14 | 14 |
| Total gross budgetary expenditures | 70,416 | 38,951 | 38,951 |
| Less revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 70,416 | 38,951 | 38,951 |
Departmental budgetary expenditures by Standard Object (unaudited) (continued)
| Planned expenditures for the year ending March 31, 2021 footnote 1 | Expended during the quarter ended June 30, 2020 | Year-to-date used at quarter-end | |
|---|---|---|---|
| Expenditures: | |||
| Personnel footnote 2 | 45,859 footnote 3 | 20,570 | 20,570 |
| Transportation and communications | (961) footnote 4 | (961) | (961) |
| Information | 887 | 887 | 887 |
| Professional and special services | 4,048 | 4,048 | 4,048 |
| Rentals | 3,606 | 3,606 | 3,606 |
| Repair and maintenance | 77 | 77 | 77 |
| Utilities, materials and supplies | 166 | 166 | 166 |
| Acquisition of land, buildings and works | - | - | - |
| Acquisition of machinery and equipment | 104 | 104 | 104 |
| Transfer payments | 14 | 14 | 14 |
| Public debt charges | - | - | - |
| Other subsidies and payments | 27 | 27 | 27 |
| Total gross budgetary expenditures | 53,827 | 28,538 | 28,538 |
| Less revenues netted against expenditures: | |||
| Revenues | - | - | - |
| Total revenues netted against expenditures: | - | - | - |
| Total net budgetary expenditures | 53,827 | 28,538 | 28,538 |
Footnotes
Return to source of footnote 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.
Return to source of footnote 2 Personnel expenditures include both Vote 1 – Program expenditures and Budgetary statutory authorities; all other categories of expenditures are solely budgetary statutory.
Return to source of footnote 3 An additional $12 million will be added to Planned expenditures on Personnel once the entirety of Main Estimates becomes available for use.
Return to source of footnote 4 Transportation and communications, in fiscal year 2020-2021, includes a $1.3 million credit.