Quarterly Financial Report for FCAC for the quarter ended December 31, 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 December 31, 2021 totalled $8,903,778, or 60.1% of its budgeted expenditures of $14,818,661 for the period, compared to 91.8% for the same period last year. The variance to budget as at December 31, 2021 of $5,914,883 is primarily due to delays in the office modernization project which resulted in underspending in repair and maintenance costs ($1,751,904) and acquisition of land, buildings and works ($750,000). In addition, personnel costs were also lower than planned as a result of delays in staffing vacant positions ($975,919), as were acquisition of machinery and equipment ($755,260) and professional services ($712,563) both due to timing.
When compared to the previous year, FCAC’s total expenditures for the three months ended December 31, 2021 of $8,903,778, were $933,826 or 9.5% lower than the same period last year. This variance is mainly due to lower information costs ($1,380,954) as a result of the timing of last year’s advertising campaign “Take Charge of Your Financial Future” which is partially offset by increases in Personnel costs ($748,657) due to the growth of the Agency.
Year-to-date results
FCAC’s total expenditures for the nine months ended December 31, 2021, totalled $26,436,282 or 72.0% of its budgeted expenditures of $36,692,651 for the period, compared to 82.8% for the same period last year. The variance to budget of $10,256,369 is primarily due to personnel costs ($3,080,882) resulting from delays in staffing new positions. Also, delays in the office modernization project caused underspending in repair and maintenance costs ($1,824,513), and in acquisition of land, buildings and works ($790,036). In addition, both professional services costs ($2,692,988) and acquisition of machinery and equipment ($564,343) are underspent due to timing.
FCAC’s total expenditures for the nine months ended December 31, 2021 of $26,436,282 were $1,446,852 or 5.8% higher than the same period last year. This increase is primarily due to an increase of $2,271,201 in personnel costs due to the growth of the Agency and economic increases, which were partially offset by lower information costs ($1,272,126) as a result of the timing of last year’s advertising campaign “Take Charge of Your Financial Future.”
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 December 31, 2021.
Approved by:
Judith Robertson
Commissioner
Financial Consumer Agency of Canada
Werner Liedtke, CPA, CMA
Chief Financial Officer
Financial Consumer Agency of Canada
January 24, 2022
Statement of Authorities (unaudited)
Authority | Total available for use for the year ending March 31, 2022* | Used during the quarter ended December 31, 2021 | Year-to-date used at quarter end |
---|---|---|---|
Payments under Section 13 of the Financial Consumer Agency of Canada Act | $48,530,754 | $8,902,705 | $26,433,141 |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 3,141 | 1,073 | 3,141 |
Total authorities | $48,533,895 | $8,903,778 | $26,436,282 |
Authority | Total available for use for the year ending March 31, 2021* | Used during the quarter ended Dectember 31, 2020 | Year-to-date used at quarter end |
---|---|---|---|
Payments under Section 13 of the Financial Consumer Agency of Canada Act | $40,696,408 | $9,837,604 | $24,989,430 |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | - | - | - |
Total authorities | $40,696,408 | $9,837,604 | $24,989,430 |
Note: Totals may not add due to rounding.
*Includes only authorities available for use at quarter-end.
Departmental budgetary expenditures by Standard Object (unaudited)
Expenditures | Planned expenditures for the year ending March 31, 2022 | Expended during the quarter ended December 31, 2021 | Year-to-date used at quarter end |
---|---|---|---|
Personnel | $29,966,604 | $6,520,031 | $19,224,470 |
Transportation and communications | 808,281 | 44,853 | 127,689 |
Information | 1,493,025 | 203,213 | 505,383 |
Professional and special services | 9,236,948 | 1,540,930 | 4,265,292 |
Rentals | 3,173,490 | 559,147 | 1,999,052 |
Repair and maintenance | 1,905,921 | (424) | 4,928 |
Utilities, materials and supplies | 74,007 | 9,150 | 32,078 |
Acquisition of land, buildings and works | 750,000 | - | - |
Acquisition of machinery and equipment | 895,819 | 19,991 | 261,412 |
Other subsidies and payments | 229,800 | 6,886 | 15,978 |
Total gross budgetary expenditures | $48,533,895 | $8,903,778 | $26,436,282 |
Note: Totals may not add due to rounding.
Expenditures | Planned expenditures for the year ending March 31, 2021 | Expended during the quarter ended December 31, 2020 | Year-to-date used at quarter end |
---|---|---|---|
Personnel | $27,351,700 | $5,771,373 | $16,953,269 |
Transportation and communications | 963,358 | 91,034 | 193,428 |
Information | 1,053,700 | 1,584,167 | 1,777,509 |
Professional and special services | 7,621,951 | 1,669,142 | 4,000,126 |
Rentals | 1,928,294 | 620,335 | 1,498,588 |
Repair and maintenance | 63,581 | 1,230 | 3,035 |
Utilities, materials and supplies | 67,484 | 15,822 | 36,276 |
Acquisition of land, buildings and works | 925,000 | - | - |
Acquisition of machinery and equipment | 492,341 | 86,976 | 521,235 |
Other subsidies and payments | 229,000 | (2,475) | 5,965 |
Total gross budgetary expenditures | $40,696,408 | $9,837,604 | $24,989,430 |
Note: Totals may not add due to rounding.
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