Quarterly Financial Report for FCAC for the quarter ended June 30, 2023

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Financial Consumer Agency of Canada
427 Laurier Ave. West
Ottawa, ON K1R 1B9

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ISSN 2816-7821

©His Majesty the King in Right of Canada, as represented by the Minister of Finance Canada, August 2023.

Aussi disponible en français sous le titre : Rapport financier trimestriel de l'ACFC pour le trimestre terminé le 30 juin 2023

Introduction

The Quarterly Financial Report (QFR) for the Financial Consumer Agency of Canada (FCAC, or the Agency) 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.

The Financial Consumer Agency of Canada Act (the Act) outlines FCAC’s functions and administration and enforcement powers, and lists the sections of federal laws and regulations under its supervision.

The QFR has not been subjected to an external audit or review.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency’s spending authorities as set out in section 13 of the Act. 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 Agency uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, spending authorities included in this report remain on an expenditure basis.

Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results

FCAC’s total expenditures for the three months ended June 30, 2023, totalled $12,159,158, or 79.4% of its budgeted expenditures of $15,313,324 for the period, compared to 94.4% for the same period last year. The variance to budget as at June 30, 2023 of $3,154,166 is primarily due to lower than planned personnel costs as a result of delays in staffing vacant positions ($1,596,444), and timing delays related to professional services costs ($1,045,966), and acquisition of land, building and works ($375,491).

When compared to the previous year, FCAC’s total expenditures for the three months ended June 30, 2023 of $12,159,158, were $693,890 or 6.1% higher than the same period last year. This variance is primarily due to increases in personnel costs ($1,800,054), higher transportation and communication costs ($160,120), and higher spending in the acquisition of machinery & equipment ($127,019). These increases are partially offset by lower spending in acquisition of land, buildings and works ($1,612,145) due to the completion of the Ottawa office modernization project.

Risks and uncertainties

Enterprise risk management

The environment in which FCAC operates carries an array of risks to the achievement of its mandate and objectives. While many of these challenges are always present, the extent to which they pose a financial risk to FCAC’s objectives varies, depending on economic and financial conditions, and the financial industry environment and its impact on financial consumers. FCAC’s ability to achieve its mandate depends on the timeliness and effectiveness with which it identifies, evaluates, prioritizes, and develops initiatives to address areas where it is most at risk.

Economic, industry and supervisory environment

FCAC operates in a rapidly evolving financial marketplace, including increasingly complex financial products and new technology developed to suit the needs and demands of today’s consumers. This may impede FCAC’s ability to keep pace with this rapid rate of change.

FCAC must continue to assess the impact of these changes and be prepared to re-allocate funding while remaining flexible. FCAC must also stay abreast of new developments and discussions, both domestically and internationally, and leverage resulting opportunities, while managing risks to ensure the continued achievement of its mandate.

Financial risks

Financial risks, primarily liquidity and credit risks, are closely managed and continue to be rated low.

Significant changes in operations, personnel and programs

There were no significant changes in Operations, Personnel and Programs during the quarter ended June 30, 2023.

Approved by:

Judith Robertson
Commissioner
Financial Consumer Agency of Canada

Werner Liedtke, CPA, CMA
Chief Financial Officer
Financial Consumer Agency of Canada

July 28, 2023

Statement of Authorities (unaudited)

Fiscal Year 2023-2024
Authority Total available for use for the year ending March 31, 2024* Used during the quarter ended June 30, 2023 Year-to-date used at quarter end
Payments under Section 13 of the Financial Consumer Agency of Canada Act $64,223,152 $12,159,158 $12,159,158
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets - - -
Total authorities $64,223,152 $12,159,158 $12,159,158
Fiscal Year 2022-2023
Authority 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
Payments under Section 13 of the Financial Consumer Agency of Canada Act $60,776,347 $11,465,158 $11,465,158
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 110 110 110
Total authorities $60,776,457 $11,465,268 $11,465,268

Note: Totals may not add due to rounding.

*Includes only authorities available for use at quarter-end.

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2023-2024
Expenditures Planned expenditures for the year ending March 31, 2024 Expended during the quarter ended June 30, 2023 Year-to-date used at quarter end
Personnel $42,546,879 $8,593,883 $8,593,883
Transportation and communications 928,822 201,985 201,985
Information 2,648,304 195,633 195,633
Professional and special services 12,966,292 2,136,291 2,136,291
Rentals 3,641,048 787,571 787,571
Repair and maintenance 6,158 903 903
Utilities, materials and supplies 63,894 14,573 14,573
Acquisition of land, buildings and works 375,491 - -
Acquisition of machinery and equipment 795,746 146,610 146,610
Other subsidies and payments 250,518 81,709 81,709
Total gross budgetary expenditures $64,223,152 $12,159,158 $12,159,158

Note: Totals may not add due to rounding.

Fiscal year 2022-2023
Expenditures Planned expenditures for the year ending March 31, 2023 Expended during the quarter ended June 30, 2022 Year-to-date used at quarter end
Personnel $34,205,760 $6,793,829 $6,793,829
Transportation and communications 706,871 41,865 41,865
Information 1,451,738 126,701 126,701
Professional and special services 12,194,547 2,101,274 2,101,274
Rentals 3,355,397 739,600 739,600
Repair and maintenance 6,039 903 903
Utilities, materials and supplies 71,753 5,682 5,682
Acquisition of land, buildings and works 5,690,000 1,612,145 1,612,145
Acquisition of machinery and equipment 2,838,746 19,591 19,591
Other subsidies and payments 255,606 23,680 23,680
Total gross budgetary expenditures $60,776,457 $11,465,268 $11,465,268

Note: Totals may not add due to rounding.

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