Atlantic Canada Opportunities Agency Quarterly Financial Report for the quarter ended June 30, 2016
Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs
Introduction
This quarterly financial report should be read in conjunction with the Main Estimates. It has been prepared by management as required by subsection 65.1 of the Financial Administration Act(FAA) and in the form and manner prescribed by the Treasury Board. This quarterly report has not been subjected to an external audit or review.
A summary description of the Atlantic Canada Opportunities Agency (ACOA) program activities can be found in the 2016-2017 Part II of the Main Estimates.
Basis of Presentation
This quarterly financial report has been prepared by management using an expenditure basis of accounting and a special purpose financial reporting framework designed to meet financial information needs with respect to the total authorities available for use. The accompanying Statement of Authorities is consistent with the Main Estimates for the 2016-2017 fiscal year and includes ACOA’s total authorities available for use as granted by Parliament and those used by the Agency during this quarter. Authorities available for use are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory authorities for specific purposes. The authority of Parliament is required before monies can be spent by the government.
When Parliament is dissolved for the purposes of a general election, section 30 of the FAA 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.
As part of the departmental performance reporting process, the Agency prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies. However, the total authorities available for use voted by Parliament remain on an expenditure basis of accounting.
ACOA Financial Structure
ACOA manages its expenditures under two votes:
- Vote 1 – Net operating expenditures includes the Agency’s authorities related to personnel costs (e.g. salaries) and operation and maintenance expenditures (e.g. travel).
- Vote 5 – Grants and contributions includes all authorities related to transfer payments.
Costs under Statutory Authorities, which represent payments made under legislation approved previously by Parliament and which are not part of the annual appropriation bills, include such items as the employer’s share of the employee benefits plan and other minor items.
Highlights of Fiscal Quarter and Fiscal Year-to-Date Results
The following section highlights significant changes to fiscal quarter results as of June 30, 2016.
Statement of Authorities: Vote 1 – Net Operating Expenditures
Total authorities available for fiscal year 2016-2017 are $64.2 million compared to $64.3 million as of June 30, 2015. This represents a decrease of $0.1 million, or 0.2%resulting from the Agency’s contributions to the government-wide back-office initiatives.
Vote 1 authorities used year-to-date at quarter-end have increased from $14.2 million in 2015-2016 to $17.0 million this fiscal year. This $2.8 million increase in authorities used, or 16.5%, is mainly explained by the increase in salary dollars due to the three pay periods during June 2016 as compared to regular two pay periods as the previous year.
Graph 1 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.
Graph 1: Comparison of Net Budgetary Authorities and Expenditures for Vote 1 as of June 30, 2015-2016 and 2016-2017.
(in thousands of dollars)
Statement of Authorities: Vote 5 – Grants and Contributions
Total authorities available for use for the year ending March 31, 2017, amount to $243.5 million, an increase of $17.9 million compared to the $225.6 million available for use as of June 30, 2016. The increase of $17.9 million, or 7.9%, is explained by:
A total increase of $22.7 in Vote 5 authorities available for use:
. $16.6 million to support the Canada 150 Community Infrastructure Program (CIP 150);
. $5.0 million related to changes in collections from repayable contributions;
. $1.0 million in funding to support the spruce budworm outbreak intervention program as announced in Budget 2014; and
. $0.1 million to establish a certification and market access program for seal products as announced in Budget 2015.
The increase is offset by a total decrease of $4.8 million in Vote 5 authorities available for use mainly related to the planned cash flow fluctuation in support of specific projects in the Province of New Brunswick as per Budget 2014.
There are no significant variances in net budgetary statutory authorities used year-to-date at quarter-end when compared to the previous fiscal year, with approximately $20.0 million used.
Graph 2 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.
Graph 2: Comparison of Net Budgetary Authorities and Expenditures for Vote 5 as of June 30, 2015-2016 and 2016-17.
(in thousands of dollars)
Statement of Authorities: Budgetary Statutory Authorities
Budgetary statutory authorities available for use for the year ending March 31, 2017, have increased by $0.2 million, or 0.2%, to $8.8 million compared to the previous fiscal year at the same time. The increase is due to the regular yearly adjustments to the employee benefit plan to correctly reflect planned requirements.
There are no significant variances in net budgetary statutory authorities used year-to-date at quarter-end when compared to the previous fiscal year, with approximately $2.2 million used.
Graph 3 illustrates the total authorities available for use for the year as well as the amount used year-to-date at quarter-end.
Graph 3: Comparison of Net Budgetary Authorities and Expenditures for Statutory Authorities as of June 30, 2015-2016 and 2016-17.
(in thousands of dollars)
Statement of the Agency’s Budgetary Expenditures by Standard Object
The Agency’s budgetary expenditures by Standard Object for the quarter ended June 30, 2016, were $39.3 million, which reflects an increase of $3.3 million, or 0.9%, from the $36.0 million in overall expenditures for the quarter ended June 30, 2015. The variance by Standard Object relates mainly to personnel and professional and special services. The variance under personnel relates to the three-pay periods during the month of June 2016 as compared to the regular two pay periods in the previous fiscal year as explained in the Statement of Authorities: Vote 1 – Net Operating Expenditures. The variance in professional and special services is mainly attributable to the streamlining and simplifying of the administration of the Justice Canada legal services funding model which moved from monthly billing to advance billing on April 1, 2016.
Risks and Uncertainties
ACOA conducts an annual risk assessment process to update its corporate risk profile. The key corporate risks identified for 2016-2017 do not have a direct impact on financial reporting. However, ACOA is managing the regular financial risks associated with running the organization and has implemented appropriate mitigation measures. The financial risks are mitigated in large part by the implementation of strong internal controls over financial reporting. These include the periodic assessment of entry-level controls, general computer controls and controls in ACOA’s key business processes such as payments on grants and contributions, regular operating expenses and accounts receivable.
Furthermore, ACOA manages its budgetary and allocation processes through a well-defined framework supported by a series of automated financial controls. Periodic forecasts are required and analyses are done regularly to ensure that funds are properly managed.
Approval by Senior Officials
Approved by:
Paul J. LeBlanc Deputy Head Moncton, Canada ___________________ Date: August 16, 2016 |
Denise Frenette, CA Chief Financial Officer Moncton, Canada ____________________ Date: August 8, 2016 |
Statement of Authorities (unaudited)
Fiscal year 2016-2017 (in thousands of dollars)
Authorities | Total available for use for the year ending March 31, 2017* |
Used during the quarter ended June 30, 2016 |
Year-to-date used at quarter-end |
---|---|---|---|
Vote 1 - Net operating expenditures
|
64,222
|
17,048 | 17,048 |
Vote 5 - Grants and contributions
|
243,460 | 20,019 | 20,019 |
Budgetary statutory authorities
|
8,815 | 2,204 | 2,204 |
Total authorities
|
316,497 | 39,271 | 39,271 |
Fiscal year 2015-2016 (in thousands of dollars)
Authorities | 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 - Net operating expenditures | 64,325 | 14,237 | 14,237 |
Vote 5 - Grants and contributions | 225,574 | 19,555 | 19,555 |
Budgetary statutory authorities | 8,627 | 2,160 | 2,160 |
Total authorities | 298,526 | 35,952 | 35,952 |
*Includes only Authorities available for use and granted by Parliament at quarter-end.
Agency’s budgetary expenditures by Standard Object (unaudited)
Fiscal year 2016-2017 (in thousands of dollars)
Expenditures | Planned expenditures for the year ending March 31, 2017* | Expended during the quarter ended June 30, 2016 | Year-to-date used at quarter-end |
---|---|---|---|
Personnel | 60,062 | 17,161 | 17,161 |
Transportation and communications | 2,864 | 526 | 526 |
Information | 358 | 42 | 42 |
Professional and special services | 6,907 | 727 | 727 |
Rentals | 1,397 | 304 | 304 |
Repair and maintenance | 432 | 144 | 144 |
Utilities, materials and supplies | 314 | 37 | 37 |
Acquisition of machinery and equipment | 1,097 | 265 | 265 |
Transfer payments | 243,460 | 20,020 | 20,020 |
Other subsidies and payments | (394) | 47 | 47 |
Total net budgetary expenditures | 316,497 | 39,271 | 39,271 |
Fiscal Year 2015-2016 (in thousands of dollars)
Expenditures | Planned expenditures for the year ending March 31, 2016* | Expended during the quarter ended June 30, 2015 | Year-to-date used at quarter-end |
---|---|---|---|
Personnel | 59,859 | 14,688 | 14,688 |
Transportation and communications | 3,672 | 555 | 555 |
Information | 353 | 51 | 51 |
Professional and special services | 7,352 | 398 | 398 |
Rentals | 1,342 | 56 | 56 |
Repair and maintenance | 257 | 153 | 153 |
Utilities, materials and supplies | 341 | 45 | 45 |
Acquisition of machinery and equipment | 308 | 368 | 368 |
Transfer payments | 225,574 | 19,555 | 19,555 |
Other subsidies and payments | (532) | 83 | 83 |
Total net budgetary expenditures |
298,526 | 35,952 | 35,952 |
*Includes only Authorities available for use and granted by Parliament at quarter-end.
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