Quarterly Financial Report For the quarter ending December 31, 2016 (unaudited)

Published on March 1, 2017

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2016-17. It 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 Accounting Standard 1.3 and it has been reviewed by the Internal Audit Committee of the Public Service Commission (PSC).

This quarterly report has not been subject to an external audit or review.

1.1 Authority and objectives

The PSC is an independent agency established under the Public Service Employment Act and listed in schedules I.1 and IV of the Financial Administration Act.

A summary description of the PSC's programs can be found in section II of the 2016-17 Report on Plans and Priorities.

1.2 Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the PSC's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates and Supplementary Estimates for the 2016-17 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 moneys 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.

The PSC uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.3 Financial Structure

The PSC has a financial structure comprised of voted budgetary authorities for Vote 1 Program Expenditures and statutory authorities for contributions to employee benefit plans.

In addition, the PSC has the authority to re-spend certain revenues received from other government departments and agencies in a fiscal year to offset expenditures incurred in that same year for the provision of assessment and counselling services and products.

2. Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the net increase in resources available for the current year and in actual expenditures for the quarter ended December 31, 2016.

2.1 Significant changes to Authorities

As shown in Section 6, Table 1: Statement of Authorities, at December 31, 2016, there have been no significant changes in authorities available for use in the current year, as compared to the prior year.

2.2 Significant variances in expenditures from prior year

As shown in Section 7, Table 2: Departmental budgetary expenditures by standard object, total net budgetary expenditures during the quarter increased from $18.3M in 2015-16 to $19.3M in 2016-17; a change of $1.0M or 5.7%.

The variance is mainly attributable to the following:

  • an increase of $0.3M in professional and special services and rentals for various projects undertaken in Information Management and Information Technology
  • an increase of $0.3M in other subsidies and payments due to salary overpayments recognized by the Public Service Pay Center and
  • a decrease of $0.4M in revenues netted against expenditures due to timing differences between fiscal years in billing the services provided by the PSC to other organizations.

3. Risks and uncertainties

The Public Service Commission (PSC) operates in a dynamic and complex environment that requires it to be efficient, adaptive and innovative. It uses integrated risk management, including the annual development of a Corporate Risk Profile to identify and respond to challenges and opportunities.

The PSC’s key risks and the corresponding mitigation strategies are outlined in Section I of the 2016-17 Report on Plans and Priorities.

4. Significant changes in relation to operations, personnel and programs

Christine Donoghue left the organization on January 3, 2017. Gerry Thom is the new Acting President. While this information relates to another quarter, Mr. Thom will sign this Quarterly Financial Report as the Acting President.

There were no significant changes to operations or programs during the third quarter of 2016-17.

5. Approved by senior officials

Original signed by: Gerry Thom
Acting President
Signed on: February 23, 2017

Original signed by: Philip Morton, CPA, CGA
Chief Financial Officer
Signed on:

Original signed by: Gerry Thom
Acting President
Signed on: February 23, 2017

Gatineau, Canada
Date of publication: March 1, 2017

6. Table 1: Statement of Authorities (unaudited) (in thousands of dollars)

 

Fiscal Year 2016-17

Fiscal Year 2015-16

 

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

Total available for use for the year ending March 31, 2016 Footnote 1

Used during the quarter ended December 31, 2015

Year to date used at quarter-end

Vote 1 – Program Expenditures

$75,268

$16,203

$48,204

$75,476

$15,223

$46,077

Statutory - Employer Contributions to Employee Benefit Plans

12,443

3,111

9,332

12,203

3,051

9,153

Total Budgetary Authorities

$87,711

$19,314

$57,536

$87,679

$18,274

$55,230

7. Table 2: Departmental budgetary expenditures by standard object (unaudited) (in thousands of dollars)

 

Fiscal year 2016-17

Fiscal year 2015-16

 

Planned expenditures for the year ending March 31, 2017

Expenditures during the quarter ended December 31, 2016

Year to date used at quarter-end

Planned expenditures for the year ended March 31, 2016

Expenditures during the quarter ended  December 31, 2015

Year to date used at quarter-end

Personnel

$84,785

$18,091

$53,947

$84,844

$18,139

$54,697

Transportation and telecommunications

854

177

452

568

121

266

Information

296

49

179

265

43

147

Professional and special services

12,681

1,733

5,239

12,911

1,532

3,696

Rentals

2,029

591

1,430

1,779

462

850

Repair and maintenance

84

4

10

46

4

17

Utilities, materials and supplies

194

47

181

206

93

164

Acquisition of machinery and
equipment

940

27

204

1,089

8

179

Other subsidies and payments

100

368

545

223

68

99

Total gross budgetary expenditures

101,963

21,087 

62,187

101,931

20,470

60,115

Less: Revenues netted against expenditures

(14,252)

(1,773)               

(4,650)

(14,252)

(2,196)

(4,885)

Total net budgetary expenditures

$87,711

$19,314

$57,536

$87,679

$18,274

$55,230

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