Pacific Economic Development Canada’s Quarterly Financial Report for the quarter ended December 31, 2021

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Statement Outlining Results, Risks and Significant Changes in Operations, Personnel and Programs

Introduction

This quarterly financial report should be read in conjunction with Supplementary Estimates (B). 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 subject to an external audit or review.

Authority, Mandate and Program Activities

PacifiCan is the regional development agency focused on British Columbia’s evolving economy. PacifiCan leads in building a strong, competitive Canadian economy by supporting business, innovation and community economic development unique to British Columbia. PacifiCan operates under the provision of the Western Economic Diversification Act.

PacifiCan is mandated to “support the growth and diversification of British Columbia’s economy and advance the interests of the region in national economic policy, programs and projects.”

For further information on PacifiCan’s authority, mandate and program activities, please review PacifiCan’s website.

Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the department’s spending authorities granted by Parliament and those used by the department, consistent with Supplementary Estimates (B) for the 2021-2022 fiscal year. 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 authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes.

The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Financial Structure

PacifiCan manages its expenditures under two votes:

Budgetary statutory authorities represent payments made under legislation approved by Parliament, and include items such as the Government of Canada's share of employee benefit plans.

Highlights of Fiscal Quarter and Fiscal Year-to-Date (YTD) Results

The following section highlights significant changes to fiscal quarter results as of December 31, 2021.

Statement of Authorities: Vote 1 – Net Operating Expenditures

Total authorities available for use for fiscal year 2021-2022 are $23.7 million. The baseline is comprised of:

Total authorities used is $4.7 million year-to-date for the quarter ended December 31, 2021. Vote 1 expenditures are comprised of:

Graph 1 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Total Available for Use and Used for Vote 1 (in thousands of dollars)
Text version: Total Available for Use and Used for Vote 1 (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2021-22 and compares the authorities used at quarter end.

2021-2022

  • $23,686 represents total available for use for the year ending March 31
  • $4,654 represents total authorities used for the quarter ending December 31

Statement of Authorities: Vote 5 – Grants and Contributions

Total authorities available for use for fiscal year 2021-2022 are $245.3 million:

Total authorities used is $43.1 million year-to-date for the quarter ended December 31, 2021. Vote 5 expenditures are comprised of:

Graph 2 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Total Available for Use and Used for Vote 5 (in thousands of dollars)
Text version: Total Available for Use and Used for Vote 5 (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2021-22 and compares the authorities used at quarter end.

2021-2022

  • $245,357 represents total available for use for the year ending March 31
  • $43,051 represents total authorities used for the quarter ending December 31

Statement of Authorities: Budgetary Statutory Authorities

Budgetary statutory authorities of $3.3 million are available for use for fiscal year 2021-2022 are comprised of funding requirements to administer the Employee Benefit Plan.

Budgetary statutory authorities used for fiscal year 2021-2022 are $0.3 million for the Employee Benefit Plan.

Graph 3 illustrates total authorities available for use for the fiscal year, and authorities used at quarter-end.

(in thousands of dollars)

Total Available for Use and Used for Budgetary Statutory Authorities (in thousands of dollars)
Text version: Total Available for Use and Used for Budgetary Statutory Authorities (in thousands of dollars)

This bar graph breaks down total authorities available for use for fiscal year 2021-22 and compares the authorities used at quarter end.

2021-2022
  • $3,267 represents total available for use for the year ending March 31
  • $292 represents total authorities used for the quarter ending December 31

Statement of the Departmental Budgetary Expenditures by Standard Object

Quarter 3 expenditures of $36.3 million continue to show spending resulting from transfer payments delivery originally implemented in Western Economic Diversification Canada. Operating and maintenance spending have increased over the third quarter to deliver transfer payment programming and to build agency capacity. Quarter 3 spending is comprised of:

Additional information can be found in the Statement of Authorities, Vote 1 and Vote 5 sections above.

Graph 4 illustrates the actual baseline expenditures for the quarter-end.

(in thousands of dollars)

Actual Expenditures Quarter Ended June 30, 2021 (in thousands of dollars)
Text version: Actual Expenditures Quarter Ended December 31, 2021 (in thousands of dollars)

This pie chart breaks down actual expenditures for quarter ended December 31, 2021.

  • $32,829 represents actual spending on Transfer Payments, which accounts for 90% of Actual Expenditures quarter ended December 31, 2021
  • $2,766 represents actual spending on Personnel, which accounts for 8% of Actual Expenditures quarter ended December 31, 2021
  • $727 represents actual spending on Other operating costs, which accounts for 2% of Actual Expenditures quarter ended December 31, 2021

Risks and Uncertainties

The department is managing the allocation of resources in conjunction with Prairies Economic Development Canada, within a well-defined framework of accountabilities, policies and procedures including a system of budgets, reporting and other internal controls to manage within available resources and deemed authorities from Treasury Board.

In response to the COVID-19 pandemic, Western Economic Diversification had identified increased enterprise-wide risks including risks to employee physical and mental health, cyber risk, and risks due to the speed of program delivery to get funding to Canadians economically affected by COVID-19 in a timely manner. PacifiCan continues to delivery programs and maintain physical office spaces by employing risk-based mitigation such as business continuity planning, occupational health and safety planning and people management strategies; a robust system of network systems including encrypted signature, electronic security protocols and mobile equipment to employ remote connectivity; and risk assessments, governance processes, process mapping and segregation of duties.

Significant Changes in Relation to Operations, Personnel and Programs

There are no significant changes in relation to operations, personnel and programs for this reporting period.

Approval by Senior Officials

Approved by:

Original signed by:

________________________
Dylan Jones
President

Vancouver, Canada
Date: February 18, 2022

Original signed by:

________________________
Tom Switzer
A/Chief Financial Officer


Statement of Authorities (unaudited)

Fiscal year 2021-2022 (in thousands of dollars)

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 December 31, 2021 Year-to-date used at quarter-end
Vote 1 - Net operating expenditures $23,686 $3,311 $4,654
Vote 5 - Grants and contributions 245,357 32,829 43,051
Budgetary statutory authorities      
Budgetary statutory authorities:
  Employee benefit plans
3,267 182 292
Total authorities $272,310 $36,322 $47,997

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

Departmental Budgetary Expenditures by Standard Object (unaudited)

Fiscal Year 2021-2022 (in thousands of dollars)

Fiscal Year 2021-2022 (in thousands of dollars)
Expenditures Total available for use for the year ending March 31, 2022* Expended during the quarter ended December 31, 2021 Year-to-date used at quarter-end
Personnel $15,367 $2,766 $4,200
Transportation and communications 125 79 79
Information 14 2 2
Professional and special services 11,071 594 606
Rentals 212 39 40
Repair and maintenance 20 0 0
Utilities, materials and supplies 31 7 13
Acquisition of machinery and equipment 113 5 5
Transfer payments 245,357 32,829 43,051
Other subsidies and payments 0 0 1
Total net budgetary expenditures $272,310 $36,322 $47,997

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

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