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:

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)

qfr-q1-2017-image001

(D)

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)

qfr-q1-2017-image002

(D)

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)

qfr-q1-2017-image003

(D)

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.
Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: