Quarterly Financial Report

For the quarter ended June 30, 2019 (unaudited)

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2019-20. 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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. It has been reviewed by the Internal Audit Committee of the Public Service Commission of Canada.

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

1.1 Authority and objectives

The Public Service Commission (the agency) 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 agency’s programs can be found in its 2019-20 Departmental Plan.

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 agency’s spending authorities granted by Parliament and those used by the agency consistent with the Main Estimates for the 2019-20 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 money 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 agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.3 Financial structure

The agency has a financial structure comprised of voted budgetary authorities for program expenditures and statutory authorities for contributions to employee benefit plans.

In addition, the agency 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 products and services.

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

This section highlights the significant items that contributed to the change in resources available for the current year and in the actual expenditures for the quarter ended June 30, 2019.

The following graph provides a comparison of the net budgetary authorities available for spending and the expenditures for the quarters ended June 30, 2019, and June 30, 2018, for the agency’s combined Vote 1 – Program Expenditures and Statutory Authorities.

2.1 Significant changes to authorities

As shown in Section 6: Statement of Authorities, at June 30, 2019, there was an increase of $2,558,657 in authorities available for use in the current year, as compared to the previous year.

• The main variance is explained by an increase in funding received from the Treasury Board submission for Funding to support a healthy, diverse, inclusive and accessible public service.

2.2 Significant variances in expenditures from prior year

As shown in Section 7: Budgetary expenditures by standard object, total net budgetary expenditures during the quarter increased from $17,030,350 in 2018-19 to $18,239,616 in 2019-20; a variance of $1,209,266 or 7.1%.

The variance is due mainly to the following:

• an increase of $1,143,412 in personnel, mainly due to a salary cost increase of indeterminate employees and of severance pay payments
• an increase of $119,303 in Professional and Special Services, mainly due to an increased payment contract for management consultation services for the renewal of the Public Service Resourcing System
• an increase of $170,844 in Other subsidies and payments, mainly due to an increase in arrears salary recovery
• an increase of $271,375 in revenues netted against expenditures, due mainly to timing — billing in the system was much slower last year than this fiscal year

3. Risks and uncertainties

The agency is evolving in a dynamic and complex environment that requires it to be effective, adaptive and innovative to support staffing in federal departments and agencies across Canada. As part of its departmental planning and reporting cycle, the agency undertakes an annual review of its organizational risks, as well as quarterly monitoring of mitigation strategies, activities and changes that are likely to have an impact on its expected results. This monitoring includes strategic oversight of the changes in external risk factors and internal vulnerabilities that may have an impact on the agency’s results.

The agency’s operational context, key risks as well as mitigation strategies can be found in its Departmental Plan 2019-20.

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

On April 1, 2019, a Commissioner left the agency.

5. Approved by senior officials

Approved by:

Patrick Borbey
President

Philip Morton, CPA, CGA
Chief Financial Officer

Gatineau, Canada
August 8, 2019

6. Statement of Authorities (unaudited)

Fiscal year 2019–20 (in thousands of dollars)

	Total available for use for the year ending March 31, 2020*	Used during the quarter ended June 30, 2019	Year-to-date used at quarter-end
Vote 1 – Program Expenditures	76,517	18,240	18,240
Statutory – Refund of Previous Year Revenue	0	0	0
Statutory – Employer Contributions to Employee Benefit Plans	11,545	0	0
Total Budgetary Authorities	88,062	18,240	18,240
* Includes only Authorities available for use and granted by Parliament at quarter-end.

Fiscal year 2018–19 (in thousands of dollars)

	Total available for use for the year ending March 31, 2019*	Used during the quarter ended June 30, 2018	Year-to-date used at quarter-end
Vote 1 – Program Expenditures	74,188	17,025	17,025
Statutory – Refund of Previous Year Revenue	-	5	5
Statutory – Employer Contributions to Employee Benefit Plans	11,315	-	-
Total Budgetary Authorities	85,503	17,030	17,030
* Includes only Authorities available for use and granted by Parliament at quarter-end.

7. Budgetary expenditures by standard object (unaudited)

Fiscal year 2019–20 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended June 30, 2019	Year-to-date used at quarter-end
Personnel	86,803	17,320	17,320
Transportation and telecommunications	2,612	147	147
Information	861	82	82
Professional and special services	8,055	910	910
Rentals	308	114	114
Repair and maintenance	125	8	8
Utilities, materials and supplies	754	84	84
Acquisition of machinery and equipment	2,011	61	61
Other subsidies and payments	785	336	336
Total gross budgetary expenditures	102,314	19,062	19,062
Less: Revenues netted against expenditures	(14,252)	(822)	(822)
Total net budgetary expenditures	88,062	18,240	18,240

Fiscal year 2018-19 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended June 30, 2018	Year-to-date used at quarter-end
Personnel	$85,760	$16,177	$16,177
Transportation and telecommunications	731	108	108
Information	175	31	31
Professional and special services	10,894	791	791
Rentals	1,195	124	124
Repair and maintenance	75	8	8
Utilities, materials and supplies	189	59	59
Acquisition of machinery and equipment	659	118	118
Other subsidies and payments	77	165	165
Total gross budgetary expenditures	99,755	17,581	17,581
Less: Revenues netted against expenditures	(14,252)	(551)	(551)
Total net budgetary expenditures	$85,503	$17,030	$17,030