Quarterly Financial Report for the quarter ended June 30, 2019

PDF logo   Quarterly Financial Report for the quarter ended June 30, 2019 (PDF)

Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

1. Introduction

This quarterly financial report has been prepared as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board.  This report should be read in conjunction with the 2019-20 Main Estimates. This quarterly report has not been subject to an external audit or review.

The Administrative Tribunals Support Service of Canada (ATSSC) is responsible for providing support services and facilities to 11 federal administrative tribunals by way of a single, integrated organization.

These services include the specialized services required by each tribunal (e.g. registry, research and analysis, legal and other mandate or case activities specific to each tribunal), as well as internal services (e.g., human resources, financial services, information management and technology, accommodations, security, planning and communications).

Further information on the mandate, roles, responsibilities and programs of the ATSSC can be found by accessing the 2019-20 Departmental Plan.

1.1. Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities (Annex A) includes the ATSSC's spending authorities granted by Parliament and those used by the ATSSC, 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 ATSSC 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. The main difference between the quarterly financial report and the departmental financial statements is the timing of when revenues and expenses are recognized.

2. Highlights of Fiscal Quarter and Fiscal Year to Date (YTD) Results

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended June 30, 2019.

The ATSSC’s financial structure is mainly composed of voted budgetary authorities namely, Vote 1—Program expenditures and Vote Netted Revenue (VNR) authority, as well as statutory authorities for contributions to employee benefit plans. The VNR gives the ATSSC authority to make recoverable expenditures on behalf of the Canada Pension Plan (CPP) and the Employment Insurance (EI) operating accounts. Presented in Graph 1 below are the gross and net budgetary authorities and expenditures for the first quarter of 2019-20. For more details, refer to the Statement of Authorities table presented in Annex A.

Graph 1: Comparison of budgetary authorities and expenditures for the first quarter ended June 30, 2019, and June 30, 2018.

Graph 1: Comparison of budgetary authorities and expenditures for the first quarter ended June 30, 2019, and June 30, 2018.

The ATSSC expended $20.2 million (22% of total authorities available for use) in the first quarter of 2019-20, compared to 17.5 million in the same quarter of 2018-19. The majority of expenditures relate to personnel, which totaled $16.7 million (83% of gross expenditures). The remaining $3.5 million primarily comprises professional and special services (mainly informatics services, translation costs and consulting services) and rental costs.

2.1. Significant Changes to Authorities

(Please refer to the Statement of Authorities table presented in Annex A.)

As of June 30, 2019, the total budgetary authorities available for use for the year decreased from $65.2 million in 2018-19 to $63.7 million in 2019-20 mainly due to the following:

2.2. Significant Changes to Vote Netted Revenue

(Please refer to the Statement of Authorities table presented in Annex A.)

As of June 30, 2019, the Vote Netted Revenue authority decreased from $30.4 million in 2018-19 to $28.9 million in 2019-20 for the charging of administrative costs to the CPP and EI operating accounts to support the discharge of the mandates of the Social Security Tribunal (SST) and the ATSSC as it relates to the SST.

Temporary authorities were provided in 2017-18 ($1.0 million) and 2018-19 ($3.9 million) for space modernization.

2.3. Significant Changes to Expenditures

(Please refer to the Departmental Budgetary Expenditures by Standard Object table presented in Annex B.)

Expenditures for the Quarter

First quarter gross budgetary expenditures increased from $17.5 million in 2018-19 to $20.2 million in 2019-20 mainly due to:

3. Risks and Uncertainties

There is a risk that the ATSSC may not be able to maintain appropriate delivery capacity to meet the mandates of tribunals and the evolving needs of all program and internal service areas. As an organization tasked with delivering existing support services while seeking to improve its service delivery model, the ATSSC must ensure that it maintains appropriate delivery capacity. In particular, the ATSSC must effectively plan its operations and investments to make efficient and effective use of its limited financial and human resources.

To mitigate this risk, emerging trends, priorities, needs and legislative changes are being monitored to identify potential impacts on caseloads and on the ATSSC resources and funding. The ATSSC has built into the budget planning and allocation processes the flexibility to re-allocate resources if and when required. The ATSSC is also developing a long-term investment plan that links proposed investments to organizational and tribunal priorities.

4. Significant Changes in Relation to Operations, Personnel and Programs

Nick Covelli has been appointed as the new Deputy Chief Administrator effective April 15, 2019.

Approval by Senior Officials

Approved by:

Original signed by

________________________
Nick Covelli,
A/Chief Administrator

Original signed by

________________________
Christopher Bucar, MBA, CPA, CMA, CD
Director General Corporate Services and Chief Financial Officer

Ottawa, Canada
August 27, 2019


Annex A

Statement of Authorities (unaudited)

(in dollars)

Fiscal year 2019-20 Fiscal year 2018-19
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
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 82,809,359 17,783,062 17,783,062 85,936,733 15,846,069 15,846,069
Less: Revenues netted against expenditures (28,874,834) - - (30,380,379) - -
Net Program expenditures 53,934,525 17,783,062 17,783,062 55,556,354 15,846,069 15,846,069
Budgetary statutory authorities 9,729,373 2,432,343 2,432,343 9,687,430 1,614,572 1,614,572
Total Budgetary authorities 63,663,898 20,215,405 20,215,405 65,243,784 17,460,641 17,460,641

* Includes only Authorities available for use and granted by Parliament at quarter-end.


Annex B

Departmental Budgetary Expenditures by Standard Object (unaudited)

(in dollars)

Fiscal year 2019-20 Fiscal year 2018-19
Planned
expenditures for
the year ending
March 31, 2019
Expended during
the quarter
ended
December 31,
2018
Year to date used
at quarter end
Planned
expenditures for
the year ending
March 31, 2018
Expended during
the quarter
ended
December 31,
2017
Year to date used
at quarter-end
Expenditures:
Personnel 73,320,048 16,742,744 16,742,744 73,420,523 15,112,868 15,112,868
Professional and special services 8,182,576 1,316,073 1,316,073 9,120,880 836,856 836,856
Transportation and communications 3,858,895 576,948 876,948 3,932,933 554,744 554,744
Rentals 2,574,511 841,201 841,201 3,745,301 368,539 368,539
Acquisition of machinery and equipment 2,121,529 50,525 50,525 3,261,460 78,894 78,894
Utilities, materials and supplies 646,452 314,033 314,033 754,318 242,218 242,218
Information 656,013 330,467 330,467 719,064 212,573 212,573
Repair and maintenance 526,840 45,717 45,717 377,240 53,847 53,847
Other subsidies and payments 651,868 (2,323) (2,323) 292,444 102 102
Total gross budgetary expenditures 92,538,732 20,215,405 20,215,405 95,624,163 17,460,641 17,460,641
Less Revenues netted against expenditures:
Revenues (28,874,834) - - (30,380,379) - -
Total Revenues netted against expenditures: (28,874,834) - - (30,380,379) - -
Total net budgetary expenditures 63,663,898 20,215,405 20,215,405 65,243,784 17,460,641 17,460,641
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