Atlantic Canada Opportunities Agency – Quarterly Financial Report for the quarter ending September 30, 2019

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 section 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 2019-2020 Part II of the Main Estimates.

Basis of Presentation

This quarterly financial report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities is consistent with the Main Estimates for the 2019-2020 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 results reporting process, the Agency prepares its annual departmental financial statements on a full accrual basis in accordance with Treasury Board accounting policies. However, the spending authorities 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

This section highlights significant changes to the fiscal quarter results as of September 30, 2019.

Statement of Authorities: Vote 1 – Net Operating Expenditures

Total authorities available for fiscal year 2019-2020 are $69.1 million with no significant variance compared to $69.3 million as of September 30, 2018.

Vote 1 authorities used year-to-date have increased to $31.3 million at the end of the second quarter this fiscal year with no significant variance compared to $30.3 million as of September 30, 2018.

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 September 30, 2018-2019 and 2019-2020.

(in thousands of dollars)

Comparison of Net Budgetary Authorities and Expenditures for Vote 1 as of September 30, 2018-2019 and 2019-2020.

(D)

Statement of Authorities: Vote 5 – Grants and Contributions

Total authorities available for use for the year ending March 31, 2020, amount to $268.0 million, an increase of $16.9 million compared to the $251.1 million available for use as of September 30, 2018. The increase of $16.9 million, or 6.7%, is explained by:

A total increase of $55.0 million in Vote 5 authorities available for use related to:

The increase is offset by a total decrease of $38.1 million in Vote 5 authorities available for use:

Vote 5 authorities used year-to-date have increased from $70.6 million last fiscal year to $87.5 million this fiscal year. This $16.9 million increase in authorities used, or 24%, is mainly due to the timing of contribution payments compared to the previous fiscal year.

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 September 30, 2018-2019 and 2019-2020.

(in thousands of dollars)

="Comparison of Net Budgetary Authorities and Expenditures for Vote 5 as of September 30, 2018-2019 and 2019-2020.

(D)

Statement of Authorities: Budgetary Statutory Authorities

Budgetary statutory authorities available for use for the year ending March 31, 2020, have increased by $0.4 million, or 5%, to $8.6 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.

Net budgetary statutory authorities used year-to-date at quarter-end have also increased by 5% when compared to the previous fiscal year, with approximately $4.3 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 September 30, 2018-2019 and 2019-2020.

(in thousands of dollars)

Comparison of Net Budgetary Authorities and Expenditures for Statutory Authorities as of September 30, 2018-2019 and 2019-2020.
(D)

Statement of the Agency’s Budgetary Expenditures by Standard Object

The Agency’s budgetary expenditures by Standard Object for the year-to-date at quarter-end were $123.1 million, which reflects an increase of $18.1 million, or 17.3%, from the $105.0 million1 in overall expenditures for the quarter ended September 30, 2018. The variance by Standard Object relates mainly to transfer payments. The variance is explained in the Statement of Authorities: Vote 5 – Grants and Contributions.

Risks and Uncertainties

ACOA conducts an annual risk assessment process to update its corporate risk profile. The key corporate risks identified for 2019-2020 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 entity-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.

Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs impacting the results of this quarter.

Approval by Senior Officials

Approved by:

Francis P. McGuire
Deputy Head
Moncton, Canada

Date : November 8, 2019

Stéphane Lagacé, CPA-CMA
Chief Financial Officer
Moncton, Canada

Date : November 8, 2019

Statement of Authorities (unaudited)

Fiscal year 2019-2020 (in thousands of dollars)

Authorities Total available for use
for the year ending
March 31, 2020*
Used during the
quarter ended
September 30, 2019
Year-to-date
used
at quarter-end
Vote 1 - Net operating expenditures 69,137 15,432 31,312
Vote 5 - Grants and contributions 268,045 54,251 87,535
Budgetary statutory authorities 8,614 2,137 4,274
Total authorities 345,796 71,820 123,121

Fiscal year 2018-2019 (in thousands of dollars)

Authorities Total available for use
for the year ending
March 31, 2019*
Used during the
quarter ended
September 30, 2018
Year-to-date
used
at quarter-end
Vote 1 - Net operating expenditures 69,306 14,959 30,300
Vote 5 - Grants and contributions 251,097 42,782 70,586
Budgetary statutory authorities 8,201 2,042 4,084
Total authorities 328,604 59,783 104,970

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

Agency's budgetary expenditures by Standard Object (unaudited)

Fiscal year 2019-2020 (in thousands of dollars)

Expenditures Planned
expenditures
for the year
ending
March 31, 2020*
Expended during
the quarter ended
September 30, 2019
Year-to-date
expended at
quarter-end
Personnel 65,937 15,582 31,050
Transportation and communications 2,772 550 1,291
Information 580 65 271
Professional and special services 4,746 694 1,049
Rentals 1,816 124 978
Repair and maintenance 368 20 191
Utilities, materials and supplies 399 57 95
Acquisition of machinery and equipment 1,077 37 60
Transfer payments 268,045 54,251 87,535
Other subsidies and payments 56 440 601
Total net budgetary expenditures 345,796 71,820 123,121

Fiscal year 2018-2019 (in thousands of dollars)

Expenditures Planned
expenditures
for the year
ending
March 31, 2019*
Expended during
the quarter ended
September 30, 20182
Year-to-date
expended at
quarter-end2
Personnel 61,910 15,203 30,439
Transportation and communications 2,891 531 1,220
Information 539 85 138
Professional and special services 5,936 437 843
Rentals 2,262 503 1,189
Repair and maintenance 1,840 33 45
Utilities, materials and supplies 530 77 175
Acquisition of machinery and equipment 1,650 44 59
Transfer payments 250,943 42,782 70,586
Other subsidies and payments 103 88 276
Total net budgetary expenditures 328,604 59,783 104,970

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

1 Adjustment to reflect expenditures as of September 30, 2018 (publication error)

2 Previous years’ figures have been realigned between standard objects to better reflect the Receiver General Chart of Accounts definition

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: