Quarterly Financial Report for the quarter ended June 30, 2015

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. It should be read in conjunction with the 2015-16 Main Estimates. The Administrative Tribunals Support Service of Canada (ATSSC) had no items in the 2015-2016 Supplementary Estimates (A) process. The report has not been subject to an external audit or review.

The ATSSC is responsible for the provision of the support services and the facilities that are needed by each of the administrative tribunals it serves to exercise their powers and perform their duties and functions in accordance with their legislation and rules.

The ATSSC provides efficient and effective services which support tribunal chairs and members in exercising their statutory responsibilities and ensures that their independence is protected in a manner which promotes Canadians' confidence in the federal tribunal system.

These services include specialized and expert support services (e.g., research and analysis, legal and other case-specific work), registry services and corporate services (e.g., human resources, financial services, information technology, accommodations and communications).

Established on November 1, 2014, the ATSSC is consistent with the government’s ongoing commitment to improve the effectiveness and efficiency of its administration and operations. By consolidating the provision of support services for eleven administrative tribunals, the government is strengthening overall capacity and modernizing operations to better meet the administrative needs of federal tribunals and to improve access to justice for Canadians.

Further information on the mandate, roles, responsibilities and programs of the ATSSC can be found by accessing the department’s 2015-16 Main Estimates.

Basis of Presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department's spending authorities granted by Parliament and those used by the department consistent with the Main Estimates for the 2015-2016 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.

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 Department 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.

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

The ATSSC’s financial structure is mainly composed of voted budgetary authorities namely, Vote 1 – Program expenditures and vote netted revenue authority, as well as statutory authorities for contributions to employee benefit plans.

As the ATSSC was established on November 1, 2014, there were no authorities or expenditures in the first quarter of the previous fiscal year (2014-15), therefore, no variances can be reported from the results of that fiscal year. For the period ending June 30, 2015, total authorities provided to the ATSSC include only the Main Estimates, with a total of $60.9 million. The department also had $17.7 million of vote netted revenue (VNR) authority for a total spending authority of $78.6 million. The VNR gives the department the authority to make recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Operating Account. Presented in Chart 1 below are the gross and net budgetary authorities and expenditures for the first quarter of 2015-16.

Chart 1: Comparison of Budgetary Authorities and Expenditures as of June 30, 2014 and June 30, 2015

Chart 1: Comparison of Budgetary Authorities and Expenditures as of June 30, 2014 and June 30, 2015

Chart Description: For the period ending June 30, 2015, the total authorities provided to the ATSSC included only the Main Estimates, with a total of $60.9 million. The department did not seek funding through the Supplementary Estimates (A) process. Its total vote netted revenue authorities are $17.7 million with which it has the authority to make recoverable expenditures on behalf of the Canada Pension Plan and the Employment Insurance Operating Account. The ATSSC incurred a total of $16.3 million in expenditures in the first quarter.

The ATSSC incurred a total of $16.3 million in expenditures in the first quarter. This represents approximately 21% of the total available authorities. The majority of the $16.3 million relates to personnel expenditures totalling $14.2 million, or 88% of the total expenditures for the quarter. The remaining amount primarily comprises professional and special services (mainly translation costs), transportation and communications (mainly travel costs), and other subsidies and payments (mainly the balance of an advance payment to Employment and Social Development Canada (ESDC) for the administration of the Social Security Tribunal).

Risks and Uncertainties

The ATSSC has identified four key risks and responses for 2015-16.

The tribunals face a risk of unexpected caseload surges that may challenge the ATSSC’s ability to provide the required level of support to the tribunals in the discharge of their mandates. While the caseload is beyond the control of the tribunals, strategies will be developed to address circumstances where tribunals face higher than expected demands. Emerging trends are being monitored to determine the potential impact on caseloads, legislative changes are being monitored to assess the impact on ATSSC resources, and budgets and allocations are monitored closely to appropriately re-allocate resources if and where required.

There is also a risk to the ATSSC’s ability to meet increased corporate accountability expectations, such as reporting, security, procurement, etc. To manage this risk, a workforce management strategy will be initiated to support the organization’s strategic priorities and to ensure the ATSSC has the proper skills, knowledge and resources to meet its mandate.

The impacts of change will continue to require that senior management embrace change and foster a culture of leadership at all levels. As such, the transformation agenda will be promoted by engaging leadership at the executive level across the organization. As well, the ATSSC will plan and define its priorities and establish governance models that will seek employee input and that will support timely decision making.

Lastly, the ATSSC does not have an integrated security and emergency management framework. The ATSSC is in the process of developing a Departmental Security Plan as required by the Policy on Government Security and the Directive on Departmental Security Management. To do so, it will assess its capacity to respond to a security and emergency management risk and build the necessary capacity where required. The ATSSC is also developing an integrated security plan that addresses both physical and information security compliance requirements.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes to the programs or structure since the ATSSC was established on November 1, 2014. The Social Security Tribunal continues to be supported by ESDC as its full transition to the ATSSC is still in the planning stages.

Approval by Senior Officials

Approved by:

 

Original signed by
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Marie-France Pelletier, Chief Administrator
Ottawa, Canada
August 28, 2015

 

Original signed by
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Luc Robitaille, A/Director General, Corporate Services and Chief Financial Officer

Statement of Authorities (unaudited)
(in dollars)

Fiscal year 2015-16
  Total available for use for the year ending
March 31, 2016 *
Used during the quarter ended
June 30, 2015
Year to date used
at quarter-end
Vote 1 - Program expenditures 69,987,637 14,119,063 14,119,063
Less: Revenues netted against expenditures (17,690,600)    
Net Program expenditures 52,297,037 14,119,063 14,119,063
Budgetary statutory authorities 8,598,993 2,149,748 2,149,748
Total Budgetary authorities 60,896,030 16,268,811 16,268,811

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

Departmental Budgetary Expenditures by Standard Object (unaudited)
(in dollars)

Fiscal year 2015-16
  Planned expenditures for the year ending
March 31, 2016 *
Expended during the quarter ended
June 30, 2015
Year to date used
at quarter-end
Expenditures:
Personnel 60,021,569 14,243,251 14,243,251
Transportation and communications 4,341,522 446,394 446,394
Information 463,413 140,664 140,664
Professional and special services 9,138,876 697,617 697,617
Rentals 1,954,045 129,165 129,165
Purchased repair and maintenance 350,286 17,825 17,825
Utilities, materials and supplies 688,301 68,691 68,691
Acquisition of machinery and equipment 1,289,562 64,212 64,212
Other subsidies and payments 339,056 460,992 460,992
Total gross budgetary expenditures 78,586,630 16,268,811 16,268,811
Less Revenues netted against expenditures:
Revenues (17,690,600)    
Total Revenues netted against expenditures: (17,690,600)    
Total net budgetary expenditures 60,896,030 16,268,811 16,268,811
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