Quarterly Financial Report for FCAC for the quarter ended September 30, 2021

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. A description of its program activities can be found in FCAC’s Business Plan 2021-2022.

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

Quarterly results

FCAC’s total expenditures for the three months ended September 30, 2021 totalled $8,787,465, or 80.7% of its budgeted expenditures of $10,890,514 for the period, compared to 79.5% for the same period last year. The variance to budget as at September 30, 2021 of $2,103,049 is primarily due to personnel costs as a result of delays in staffing vacant positions ($1,045,511), and timing and underspending in professional services ($978,200).

When compared to the previous year, FCAC’s total expenditures for the three months ended September 30, 2021 of $8,787,465, were $964,384 or 12.3% higher than the same period last year. This variance is mainly due to increases in Personnel costs ($657,498) due to the growth of the Agency and Rentals cost ($351,588) due to software licenses and maintenance.  

Year-to-date results

FCAC’s total expenditures for the six months ended September 30, 2021, totalled $17,532,504 or 80.2% of its budgeted expenditures of $21,873,991 for the period, compared to 77.8% for the same period last year. The variance to budget of $4,341,487 is primarily due to personnel costs ($2,104,963) resulting from delays in staffing new positions, and the timing and underspending in professional services ($1,980,425).

FCAC’s total expenditures for the six months ended September 30, 2021 of $17,532,504 were $2,380,678 or 15.7% higher than the same period last year. This increase is primarily due to an increase of $1,522,543 in personnel costs due to the growth of the Agency and economic increases, $561,652 in rentals due to software licenses and maintenance and $393,379 in professional services related to the modernization of workplace, processes and systems.

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.

COVID-19

The outbreak of the Coronavirus disease “COVID-19” has resulted in FCAC implementing emergency measures such as travel restrictions and teleworking. In addition, the pandemic is expected to have an impact on the Agency’s human resources plan, and also may have a potential impact on the Agency’s procurement due to business interruption.  The duration and impact of the COVID-19 outbreak is unknown at this time. As a result, it is not possible to reliably estimate the length and severity of the impact on FCAC’s financial position and financial results in future periods.

Significant changes in operations, personnel and programs

There were no significant changes in Operations, Personnel and Programs during the quarter ended September 30, 2021.

Approved by:

Judith Robertson
Commissioner
Financial Consumer Agency of Canada 

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

November 1, 2021

Statement of authorities (unaudited)

Fiscal year 2021-2022
Authority Total available for use for the year ending March 31, 2022 Used during the quarter ended September 30, 2021 Year-to-date used at quarter end
Payments under Section 13 of the Financial Consumer Agency of Canada Act $48,530,754 $8,787,076 $17,530,436
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 1,680 389 2,068
Total authorities $48,532,434 $8,787,465 $17,532,504
Fiscal year 2020-2021
Authority Total available for use for the year ending March 31, 2021 Used during the quarter ended September 30, 2020 Year-to-date used at quarter end
Payments under Section 13 of the Financial Consumer Agency of Canada Act $40,696,408 $7,823,081 $15,151,826
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets - - -
Total authorities $40,696,408 $7,823,081 $15,151,826

Note: Totals may not add due to rounding.

Departmental budgetary expenditures by Standard Object (unaudited)

Fiscal year 2021-2022
Expenditures Planned expenditures for the year ending March 31, 2022 Expended during the quarter ended September 30, 2021 Year-to-date used at quarter end
Personnel $29,966,604 $6,443,189 $12,704,439
Transportation and communications 808,281 39,206 82,837
Information 1,493,025 132,511 302,170
Professional and special services 9,236,948 1,291,407 2,724,362
Rentals 3,173,490 772,748 1,439,905
Repair and maintenance 1,905,921 4,449 5,352
Utilities, materials and supplies 72,934 12,991 22,927
Acquisition of land, buildings and works 750,000 - -
Acquisition of machinery and equipment 895,819 74,000 241,421
Other subsidies and payments 229,800 16,965 9,092
Total gross budgetary expenditures $48,532,823 $8,787,465 $17,532,504

Note: Totals may not add due to rounding. 

Fiscal year 2020-2021
Expenditures Planned expenditures for the year ending March 31, 2021 Expended during the quarter ended September 30, 2020 Year-to-date used at quarter end
Personnel $27,351,700 $5,785,691 $11,181,896
Transportation and communications 963,358 49,628 102,395
Information 1,053,700 115,685 193,342
Professional and special services 7,621,951 1,427,374 2,330,983
Rentals 1,928,294 421,160 878,253
Repair and maintenance 63,581 903 1,805
Utilities, materials and supplies 67,484 11,794 20,454
Acquisition of land, buildings and works 925,000 - -
Acquisition of machinery and equipment 492,341 7,351 434,259
Other subsidies and payments 229,000 3,497 8,440
Total gross budgetary expenditures $40,696,408 $7,823,081 $15,151,826

Note: Totals may not add due to rounding.

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