Quarterly Financial Report - Statement outlining results, risks and significant changes in operations, personnel and programs - For the quarter ended September 30, 2021

[ 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 2021-22 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. 

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

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, 2021.

PCO spent approximately 45% of its authorities available for use by the end of the second quarter, compared to 40% at the end of the same quarter of 2020-21 (see graph 1 below).

Graph 1: Comparison of total authorities available for use and total net budgetary expenditures as of Q2 2021-22 and 2020-21

Graph 1
Text version - Graph 1
(in millions)
Total authorities available for use Q2 Expenditures Year-to-date expenditures
2021-22 203.5 46.5 90.8
2020-21 198.1 40.7 79.2
 

Significant changes to authorities

As per graph 2 below as at September 30, 2021 and Annex A, presented at the end of this document, PCO has authorities available for use of $203.5 million in 2021-22 compared to $198.1 million as of September 30, 2020, for a net increase of $5.4 million or 3%.

Graph 2: Variance in Authorities as at September 30, 2021

Graph 2
Text version - Graph 2
(in millions)
Vote 1 - Operating Statutory Total budgetary authorities
Fiscal year 2021-22 total available for use for the year ended March 31, 2022 182.8 20.7 203.5
Fiscal year 2020-21 total available for use for the year ended March 31, 2021 178.4 19.7 198.1
 
 

The net increase in authorities of $5.4 million is mainly explained by:

Significant changes to quarter expenditures

The second quarter expenditures totaled $46.5 million for a net increase of $5.8 million (14%) when compared to $40.7 million spent during the same period in 2020-21. Table 1 below presents budgetary expenditures by standard object.

Table 1

(in thousands of dollars)
Material Variances to Expenditures by Standard Object Fiscal year 2021-22
Expended during the quarter ended 30-September-2021
Fiscal year 2020-21
Expended during the quarter ended 30-September-2020
Variance $ Variance %
Personnel 37,236 32,868 4,368 13%
Transportation and communications 725 157 568 362%
Information 896 881 15 2%
Professional and special services  6,190 3,629 2,561 71%
Rentals 953 260 693 267%
Repair and maintenance 72 115 (43) (37%)
Utilities, materials and supplies 85 124 (39) (31%)
Acquisition of machinery and equipment 240 2,395 (2,155) (90%)
Other subsidies and payments 286 249 37 15%
Total gross budgetary expenditures * 46,682 40,678 6,005 15%
Less revenues netted against expenditures (193)   - (193) 0%
Total budgetary expenditures 46,490 40,678 5,812 14%
* Details may not add to totals due to rounding

Personnel:

The overall increase of $4.4 million in personnel spending is mainly due to the timing of salary recoveries from other government departments, activities relating to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy and the activities of the Ministers’ Regional Offices.

Transportation and Communications:

The increase of $0.6 million is mainly attributed to the travel costs related to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy.

Professional and Special Services:

The increase of $2.6 million is mainly due to court reporting services costs related to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy.

Acquisition of machinery and equipment:

The decrease of $2.2 million is mainly related to the purchase of safety equipment in 2020-21.

Significant changes to year-to-date expenditures

The year-to-date expenditures totaled $90.8 million for a net increase of $11.6 million (15%) when compared to $79.2 million spent during the same period in 2020-21. 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 2021 YTD Expenditures as of September 30 2020 Variance $ Variance %
Personnel 73,501 65,548 7,953 12%
Transportation and communications    1,491 493 998 202%
Information    1,870 1,800 70 4%
Professional and special services    9,328 7,263 2,065 28%
Rentals    1,790 818 972 119%
Repair and maintenance 147 133 14 11%
Utilities, materials and supplies 139 165 (26) (16%)
Acquisition of machinery and equipment    2,088 2,576 (488) (19%)
Other subsidies and payments 638 442 196 44%
Total gross budgetary expenditures * 90,993 79,237 11,756 15%
Less revenues netted against expenditures (194) - (194) 0%
Total budgetary expenditures 90,798 79,237 11,562 15%
* Details may not add to totals due to rounding

Personnel:

The overall increase of $8.0 million in personnel spending is mainly due to the timing of salary recoveries from other government departments, activities relating to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy, and the activities of the Ministers’ Regional Offices.

Transportation and communications:

The increase of $1.0 million is mainly attributed to the travel costs related to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy and increased telecommunication costs related to the expansion of the secure communications for national leadership initiative.

Professional and special services:

The increase of $2.1 million is mainly due to court reporting services costs related to the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy.

Rentals:

The increase of $1.0 million is mainly attributed to software license applications and the rental of office buildings for the Joint Public Inquiry into the Nova Scotia April 2020 Tragedy.

Acquisition of machinery and equipment:

The decrease of $0.5 million is mainly related to the purchase of safety equipment in 2020-21.

Risks and uncertainties

The dominant financial risks lie in the need to reallocate departmental resources to deal with issues that emerge unexpectedly. As part of its coordinating role, PCO must be able to address emerging issues on short notice, and either manage the necessary expenditures within its own spending authorities, or cash manage until increased spending authorities are approved. 

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

Personnel

In August 2021, Nathalie Drouin was appointed Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet, Michael Vandergrift was appointed as Deputy Minister of Intergovernmental Affairs, Paul MacKinnon has joined as Deputy Secretary to the Cabinet, Governance and Donnalyn McClymont was appointed as Deputy Secretary to the Cabinet, Senior Personnel and Public Service Renewal. Christyne Tremblay, Deputy Clerk of the Privy Council and Associate Secretary to the Cabinet departed PCO in August 2021 and Janine Sherman, Deputy Secretary to the Cabinet, Senior Personnel and Public Service Renewal retired from the Public Service. An organization chart is regularly updated and posted on the PCO website.

Approval by senior officials:

Janice Charette
Interim Clerk of the Privy Council and Secretary to the Cabinet

Matthew Shea
Assistant Deputy Minister,
Corporate Services Branch and Chief Financial Officer

Annexes A & B


Ottawa, Canada
Monday, November 29, 2021

Annex A

Statement of authorities (unaudited) (note 2)

(in thousands of dollars)
Fiscal year 2021-2022 Fiscal year 2020-2021
Total available for use for the year ending
March 31, 2022 (note 1)
Used during the quarter ended
September 30, 2021
Year-to-date used at quarter–end Total available for use for the year ending
March 31, 2021 (note 1)
Used during the quarter ended
September 30, 2020
Year-to-date used at quarter–end
Vote 1 - Net operating expenditures 182,769 41,456 80,714 178,435 36,239 70,359
Budgetary statutory authorities  
Contributions to employee benefits plans 20,348 4,927 9,855 19,229 4,326 8,651
Prime Minister - Salary and motor car allowance 188 47 94 185 46 92
Leader of the Government in the House of Commons - Salary and motor car allowance 91 23 45 89 22 45
President of the Queen's Privy Council for Canada and the Minister of Intergovernmental Affairs - Salary and motor car allowance 91 23 45 89 22 45
Deputy Prime Minister and Minister of Finance - Salary and motor car allowance - (8) - 89 22 45
Minister and Special Representative for the Prairies - Salary and motor car allowance - 23 45 - - -
Total budgetary authorities 203,486 46,490 90,798 198,117 40,678 79,237
Total authorities 203,486 46,490 90,798 198,117 40,678 79,237
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 2021-2022 Fiscal year 2020-2021
Planned expenditures for the year ending
March 31, 2022 (note 1)
Expended during the quarter ended
September 30, 2021
Year-to-date used at quarter–end Planned expenditures for the year ending
March 31, 2021 (note 1)
Expended during the quarter ended
September 30, 2020
Year-to-date used at quarter–end
Budgetary expenditures  
Personnel 161,514 37,236 73,501 123,379 32,868 65,548
Transportation and communications 4,105 725 1,491 3,179 157 493
Information 3,466 896 1,870 48,251 881 1,800
Professional and special services 26,504 6,190 9,328 17,922 3,629 7,263
Rentals 2,138 953 1,790 1,287 260 818
Repair and maintenance 3,289 72 147 2,030 115 133
Utilities, materials and supplies 717 85 139 511 124 165
Acquisition of machinery and equipment 8,410 240 2,088 2,936 2,395 2,576
Other subsidies and payments - 286 638 - 249 442
Total gross budgetary expenditures 210,143 46,682 90,993 199,494 40,678 79,237
Less revenues netted against expenditures
   Revenues
(6,657) (193) (194) (1,377) - -
Total revenues netted against expenditures (6,657) (193) (194) (1,377) - -
Total budgetary expenditures 203,486 46,490 90,798 198,117 40,678 79,237
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: