Atlantic Canada Opportunities Agency - Quarterly Financial Report for the quarter ending June 30, 2022

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 2022-2023 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 2022-2023 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 June 30, 2022.

Statement of Authorities: Vote 1 – Net Operating Expenditures

Total authorities available for fiscal year 2022-2023 are $70.0 million with no significant variance compared to $70.9 million as of June 30, 2021.

Vote 1 authorities used year-to-date have increased to $17.4 million at the end of the first quarter this fiscal year with no significant variance compared to $16.6 million as of June 30, 2021.

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, 2021-2022 and 2022-2023.

(in thousands of dollars)

For the year ending March 31, 2022, total authorities available for use for Vote 1 is $70,905 in thousands of dollars, while year to date authorities used for Vote 1 is $16,579 in thousands of dollars. For the year ending March 31, 2023, total authorities available for use for Vote 1 is $70,011 in thousands of dollars, while year to date authorities used for Vote 1 is $17,394 in thousands of dollars.

Long description

For the year ending March 31, 2022, total authorities available for use for Vote 1 is $70,905 in thousands of dollars, while year to date authorities used for Vote 1 is $16,579 in thousands of dollars.

For the year ending March 31, 2023, total authorities available for use for Vote 1 is $70,011 in thousands of dollars, while year to date authorities used for Vote 1 is $17,394 in thousands of dollars.

Statement of Authorities: Vote 5 – Grants and Contributions

Total authorities available for use for the year ending March 31, 2023, amount to $357.5 million, an increase of $27.5 million compared to the $330.0 million available for use as of June 30, 2021. The increase of $27.5 million, or 8.3%, is explained by the following:

A total increase of $109.0 million in Vote 5 authorities available for use related to:

This increase is offset by a total decrease of $81.5 million in Vote 5 authorities available for use related to the sunsetting of the following COVID-19 temporary initiatives:

Vote 5 authorities used have decreased from $54.8 million last fiscal year to $30.8 million this fiscal year. This $24.0 million decrease in authorities used, or 43.9%, is mainly due to the timing of contribution payments compared to the previous fiscal year, especially for COVID-19 temporary initiatives such as the RRRF.

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, 2021-2022 and 2022-2023.

(in thousands of dollars)

For the year ending March 31, 2022, total authorities available for use for Vote 5 is $329,972 in thousands of dollars, while year to date authorities used for Vote 5 is $54,797 in thousands of dollars. For the year ending March 31, 2023, total authorities available for use for Vote 5 is $357,462 in thousands of dollars, while year to date authorities used for Vote 5 is $30,754 in thousands of dollars.

Long description

For the year ending March 31, 2022, total authorities available for use for Vote 5 is $329,972 in thousands of dollars, while year to date authorities used for Vote 5 is $54,797 in thousands of dollars.

For the year ending March 31, 2023, total authorities available for use for Vote 5 is $357,462 in thousands of dollars, while year to date authorities used for Vote 5 is $30,754 in thousands of dollars.

Statement of Authorities: Budgetary Statutory Authorities

Budgetary statutory authorities available for use for the year ending March 31, 2023, have increased by $0.6 million, or 6.8%, to $9.1 million compared to the previous fiscal year at the same time.

Budgetary statutory authorities used year-to-date have increased to $2.3 million at the end of the first quarter this fiscal year, with no significant variance compared to $2.1 million as of June 30, 2021.

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, 2021-2022 and 2022-2023.

(in thousands of dollars)

For the year ending March 31, 2022, total authorities available for use for Statutory authorities is $8,488 in thousands of dollars, while year to date authorities used for Statutory authorities is $2,072 in thousands of dollars. For the year ending March 31, 2023, total authorities available for use for Statutory authorities is $9,069 in thousands of dollars, while year to date authorities used for Statutory authorities is $2,257 in thousands of dollars.

Long description

For the year ending March 31, 2022, total authorities available for use for Statutory authorities is $8,488 in thousands of dollars, while year to date authorities used for Statutory authorities is $2,072 in thousands of dollars.

For the year ending March 31, 2023, total authorities available for use for Statutory authorities is $9,069 in thousands of dollars, while year to date authorities used for Statutory authorities is $2,257 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, 2022, were $50.4 million, which reflects a decrease of $23.0 million, or 31.4%, from the $73.4 million in overall expenditures for the quarter ended June 30, 2021. 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 a regular assessment of its overarching corporate risk profile. ACOA manages financial risks through a set of 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 or programs impacting the results of this quarter.

Approval by Senior Officials

Approved by:

Francis P. McGuire
Deputy Head
Moncton, Canada
Date: August 22, 2022

Stéphane Lagacé, CPA-CMA
Chief Financial Officer
Moncton, Canada
Date: August 19, 2022

Statement of Authorities (unaudited)
Fiscal year 2022-2023 (in thousands of dollars)
Authorities Total available for use for the year ending
March 31, 2023*
Used during the
quarter ended
June 30, 2022
Year-to-date
used at
quarter-end
Vote 1 – Net operating expenditures 70,011 17,394 17,394
Vote 5 – Grants and contributions 357,462 30,754 30,754
Budgetary statutory authorities 9,069 2,257 2,257
Total authorities 436,542 50,405 50,405
Statement of Authorities (unaudited)
Fiscal year 2021-2022 (in thousands of dollars)
Authorities Total available for use for the year ending
March 31, 2022*
Used during the
quarter ended
June 30, 2021
Year-to-date
used at
quarter-end
Vote 1 – Net operating expenditures 70,905 16,579 16,579
Vote 5 – Grants and contributions 329,972 54,797 54,797
Budgetary statutory authorities 8,488 2,072 2,072
Total authorities 409,365 73,448 73,448

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

Agency's budgetary expenditures by Standard Object (unaudited)
Fiscal year 2022-2023 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2023*
Expended during the
quarter ended
June 30, 2022
Year-to-date
expended at
quarter-end
     Personnel 69,225 17,607 17,607
     Transportation and communications 1,205 271 271
     Information 499 128 128
     Professional and special services 3,354 482 482
     Rentals 1,915 635 635
     Repair and maintenance 154 16 16
     Utilities, materials and supplies 237 16 16
     Acquisition of machinery and equipment 1,015 134 134
     Transfer payments 357,461 30,754 30,754
     Other subsidies and payments 1,477 362 362
Total net budgetary expenditures 436,542 50,405 50,405
Agency's budgetary expenditures by Standard Object (unaudited)
Fiscal year 2021-2022 (in thousands of dollars)
Expenditures Planned expenditures
for the year ending
March 31, 2022*
Expended during the
quarter ended
June 30, 2021
Year-to-date
expended at
quarter-end
     Personnel 65,066 17,256 17,256
     Transportation and communications 3,526 21 21
     Information 742 105 105
     Professional and special services 4,268 358 358
     Rentals 2,174 570 570
     Repair and maintenance 319 15 15
     Utilities, materials and supplies 549 18 18
     Acquisition of machinery and equipment 1,112 26 26
     Transfer payments 329,972 54,797 54,797
     Other subsidies and payments 1,637 282 282
Total net budgetary expenditures 409,365 73,448 73,448

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

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