Quarterly Financial Report for the quarter ended
September 30, 2019

[ PDF version ]

Introduction

This quarterly report 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 Directive on Accounting Standards, GC 4400 Departmental Quarterly Financial Report. This quarterly financial report should be read in conjunction with the Main Estimates and previous Quarterly Financial Reports. For more information on PCO, please visit PCO's website.

This quarterly report has not been subject to an external audit or review but has been shared with the PCO Departmental Audit Committee and it reflects the committee members' comments.

Mandate

PCO supports the development and implementation of the Government of Canada's policy and legislative agendas, coordinates responses to issues facing the Government and the country, and supports the effective operation of Cabinet. PCO is led by the Clerk of the Privy Council, who also serves as Secretary to the Cabinet and the Head of the Public Service.

PCO serves Canada and Canadians by providing advice and support to the Prime Minister, portfolio ministers, and Cabinet.

PCO has three main roles:

  1. Provide professional non-partisan advice to the Prime Minister, portfolio ministers, Cabinet and Cabinet committees on matters of national and international importance.
  2. Support the smooth functioning of the Cabinet decision-making process and facilitate the implementation of the Government’s agenda.
  3. Foster a high-performing and accountable Public Service.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes PCO’s spending authorities granted by Parliament and those used by the department, consistent with the 2019-20 Main Estimates . This quarterly report has been prepared using a special purpose financial reporting framework (expenditure basis) designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before moneys 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.

PCO uses the full accrual method of accounting to prepare and present its annual departmental financial statements1 that are part of the departmental performance reporting process. The spending authorities voted by Parliament remain on an expenditure basis.

Highlights of fiscal quarter and fiscal year to date results

This section highlights the significant items that contributed to the net increase or decrease in authorities available for the year and actual expenditures for the quarter ended September 30, 2019.

PCO spent approximately 47% of its authorities available for use by the end of the second quarter, compared to 45% in the same quarter of 2018-19 (see graph 1 below).

Graph 1: Comparison of Total Authorities Available For Use and Total Net Budgetary Expenditures as of Q2 2019-2020 and 2018-2019

Graph 1
Text version - Graph 1
(in millions)
2019-20 2018-19
Total Authorities available for use 184.0 173.3
Q2 Expenditures 42.2 41.4
Year-to-date expenditure 86.4 78.3

Significant changes to authorities

As per graph 2 below as at September 30, 2019 and Annex A, presented at the end of this document, PCO has authorities available for use of $184.0 million in 2019-20 compared to $173.3 million as of September 30, 2018, for a net increase of $10.7 million or 6%.

Graph 2: Variance in Authorities as at September 30, 2019

Graph 2 * Details may not add to totals due to rounding
Text version - Graph 2
(in millions)
Vote 1 - Operating Statutory Total budgetary authorities
Fiscal year 2019-20 total available for use for the year ended March 31, 2020 165.7 18.3 184.0
Fiscal year 2018-19 total available for use for the year ended March 31, 2019 157.3 16.1 173.3
* Details may not add to totals due to rounding

The net increase in authorities of $10.7 million is mainly explained by:

Significant changes to quarter expenditures

The second quarter expenditures totaled $42.2 million for a net increase of $0.8 million (2%) when compared to $41.4 million spent during the same period in 2018-19. Table 1 below presents budgetary expenditures by standard object.

Table 1

(in thousands of dollars)
Material Variances to Expenditures by Standard Object Fiscal year 2019-20
Expended during the quarter ended 30-September-2019
Fiscal year 2018-19
Expended during the quarter ended 30-September-2018
Variance $ Variance %
Personnel 31,866 30,523 1,343 4%
Transportation and communications 1,294 1,820 (526) (29%)
Information 2,384 955 1,429 150%
Professional and special services 4,362 4,982 (620) (12%)
Rentals 425 368 57 15%
Repair and maintenance 182 405 (223) (55%)
Utilities, materials and supplies 366 217 149 69%
Acquisition of land, buildings, and works - - - -
Acquisition of machinery and equipment 609 1,202 (593) (49%)
Transfer payments 252 686 (434) (63%)
Other subsidies and payments 499 215 284 132%
Total gross budgetary expenditures * 42,239 41,373 866 2%
Less revenues netted against expenditures (46) 0 (46) 0%
Total budgetary expenditures 42,193 41,373 820 2%
* Details may not add to totals due to rounding

Personnel

The overall increase of $1.3 million in personnel spending is mainly due to a combination of additional staff required to deliver on an expanded departmental mandate, the timing of salary recoveries from other government departments and an increase to contributions to Employee Benefit Plans.

Transportation and communications

The decrease of $0.5 million is attributed to the completion of the National Inquiry into Missing and Murdered Indigenous Women and Girls in 2019-20.

Information

The increase of $1.4 million is mainly attributed to communication professional services contracts to support the National Inquiry into Missing and Murdered Indigenous Women and Girls, as they closed out activities.

Repairs and maintenance

The decrease of $0.2 million is primarily related to the variable nature of accommodation related projects.

Utilities, materials and supplies

The increase of $0.1 million is mainly due to expenditures to support the National Inquiry into Missing and Murdered Indigenous Women and Girls, as they closed out activities.

Acquisition of machinery and equipment

The decrease is related to a reduction in expenditures for computer and safety equipment and office furniture as compared to 2018-19.

Transfer payments

Transfer payments have decreased by $0.4 million as the National Inquiry into Missing and Murdered Indigenous Women and Girls completed its core activities in 2019-20.

Other subsidies and payments

The increase is mainly related to additional costs incured due to salary overpayments and other payments related to the National Inquiry into Missing and Murdered Indigenous Women and Girls.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $86.4 million for a net increase of $8 million (10%) when compared to $78.3 million spent during the same period in 2018-19. Table 2 below presents budgetary expenditures by standard object.

Table 2

(in thousands of dollars)
Material Variances to Expenditures by Standard Object YTD Expenditures as of September 30, 2019 YTD Expenditures as of September 30, 2018 Variance $ Variance %
Personnel 65,006 60,366 4,640 8%
Transportation and communications 2,744 2,654 90 3%
Information 4,677 1,477 3,200 217%
Professional and special services 8,651 9,404 (753) (8%)
Rentals 1,307 806 501 62%
Repair and maintenance 208 100 108 108%
Utilities, materials and supplies 484 339 145 43%
Acquisition of land, buildings, and works - - - -
Acquisition of machinery and equipment 1,319 1,770 (451) (25%)
Transfer payments 1,139 819 320 39%
Other subsidies and payments 868 595 273 46%
Total gross budgetary expenditures * 86,403 78,330 8,074 10%
Less revenues netted against expenditures (46) 0 (46) 0%
Total budgetary expenditures 86,357 78,330 8,028 10%
* Details may not add to totals due to rounding

Personnel

The overall increase of $4.6 million in personnel spending is mainly due to a combination of additional staff required to deliver on an expanded departmental mandate, the timing of salary recoveries from other government departments and an increase to contributions to Employee Benefit Plans.

Information

The increase of $3.2 million is mainly attributed to communication professional services contracts to support the National Inquiry into Missing and Murdered Indigenous Women and Girls, as they closed out activities.

Rentals

The increase of $0.5 million is mainly due to timing differences for the payment of invoices and additional subscriptions.

Repairs and maintenance

The increase of $0.1 million is mainly due to a timing difference in the payment of invoices.

Utilities, materials and supplies

The increase of $0.1 million is mainly due to expenditures to support the National Inquiry into Missing and Murdered Indigenous Women and Girls, as they closed out activities.

Acquisition of machinery and equipment

The decrease is related to a reduction in expenditures for computer and safety equipment and software liscence fees as compared to 2018-19.

Transfer payments

Transfer payments have increased by $0.3 million as the National Inquiry into Missing and Murdered Indigenous Women and Girls completed its core activities in 2019-20.

Other subsidies and payments

The increase is mainly related to additional costs incured due to salary overpayments and other payments related to the National Inquiry into Missing and Murdered Indigenous Women and Girls.

Risks and uncertainties

The dominant financial risks lie in funding initiatives to deal with issues that emerge unexpectedly. As part of its coordinating role, PCO is expected to launch these initiatives on short notice, and either manage the necessary expenditures within its own spending authorities, or cash manage until increased spending authorities are approved.

PCO provides administrative and financial support to the National Inquiry into Missing and Murdered Indigenous Women and Girls. There are limitations to financial oversight due to the arms length relationship between PCO and the National Inquiry; however, financial obligations ultimately remain the responsibility of PCO.

PCO is closely monitoring pay transactions to identify and address over and under payments in a timely manner and continues to apply ongoing mitigating controls which were implemented in 2016.

Significant changes in relation to operations, personnel and programs

Operations and programs

The National Inquiry into Missing and Murdered Indigenous Women and Girls completed its core activities at June 30, 2019. No other significant changes have occurred in PCO's operating environment in the last quarter.

Personnel

Thao Pham was appointed Deputy Secretary to the Cabinet in August 2019.

Approval by senior officials:

Ottawa, Canada
Wednesday, November 27, 2019

Annex A & B

Annex A

Statement of authorities (unaudited) (note 2)

(in thousands of dollars)
Fiscal year 2019-2020 Fiscal year 2018-2019
Total available for use for the year ending March 31, 2020 (note 1) Used during the quarter ended
September 30, 2019
Year-to-date used at quarter–end Total available for use for the year ending
March 31, 2019 (note 1)
Used during the quarter ended
September 30, 2018
Year-to-date used at quarter–end
Vote 1 - Net operating expenditures 165,744 37,676 77,277 157,264 37,375 70,335
Budgetary statutory authorities  
Contributions to employee benefits plans 17,809 4,406 8,858 15,727 3,932 7,863
Prime Minister - Salary and motor car allowance 181 45 90 178 44 89
Leader of the Government in the House of Commons - Salary and motor car allowance 88 22 44 86 - -
Minister of Democratic Institutions - Salary and motor car allowance 88 22 44 86 22 43
Minister of Intergovernmental and Northern Affairs and Internal Trade - Motor car allowance 88 22 44 - - -
Spending of proceeds from the disposal of surplus Crown assets - - - 6 - -
Total budgetary authorities 183,997 42,193 86,357 173,347 41,373 78,330
Total Authorities 183,997 42,193 86,357 173,347 41,373 78,330
Note 1: Includes only Authorities available for use and granted by Parliament at quarter-end for each respective fiscal year (Including Frozen Allotments).
Note 2: Details may not add to totals due to rounding.

Annex B

Departmental budgetary expenditures by Standard Object (unaudited) (note 2)

(in thousands of dollars)
Fiscal year 2019-2020 Fiscal year 2018-2019
Planned expenditures for the year ending March 31, 2019 (note 1) Expended during the quarter ended September 30, 2019 Year-to-date used at quarter-end Planned expenditures for the year ending March 31, 2019 (note 1) Expended during the quarter ended September 30, 2018 Year-to-date used at quarter-end
Budgetary expenditures  
Personnel 138,665 31,866 65,006 120,697 30,523 60,366
Transportation and communications 3,189 1,294 2,744 6,303 1,820 2,654
Information 3,168 2,384 4,677 5,261 955 1,477
Professional and special services 35,420 4,362 8,651 32,706 4,982 9,404
Rentals 925 425 1,307 1,807 368 806
Repair and maintenance 1,177 182 208 2,084 405 100
Utilities, materials and supplies 272 366 484 516 217 339
Acquisition of machinery and equipment 1,885 609 1,319 4,707 1,202 1,770
Transfer payments 900 252 1,139 - 686 819
Other subsidies and payments 707 499 868 351 215 595
Total gross budgetary expenditures 186,307 42,239 86,403 174,432 41,373 78,330
Less Revenues netted against expenditures:
  Revenues
(2,310) (46) (46) (1,085) - -
Total revenues netted against expenditures (2,310) (46) (46) (1,085) - -
Total Budgetary Expenditures 183,997 42,193 86,357 173,347 41,373 78,330
Note 1: Includes only Authorities available for use and granted by Parliament at quarter-end for each respective fiscal year (Including Frozen Allotments).
Note 2: Details may not add to totals due to rounding
Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: