Quarterly Financial Report

For the quarter ended December 31, 2019 (unaudited)

1. Introduction

This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2019-20. It 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. It has been reviewed by the Internal Audit Committee of the Public Service Commission of Canada.

This quarterly report has not been subject to an external audit or review.

1.1 Authority and objectives

The Public Service Commission (the agency) is an independent agency established under the Public Service Employment Act and listed in schedules I.1 and IV of the Financial Administration Act.

A summary description of the agency’s programs can be found in its 2019-20 Departmental Plan.

1.2 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 granted by Parliament and those used by the agency consistent with the Main Estimates for the 2019-20 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 departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.3 Financial structure

The agency has a financial structure comprised of voted budgetary authorities for program expenditures and statutory authorities for contributions to employee benefit plans.

In addition, the agency has the authority to re-spend certain revenues received from other government departments and agencies in a fiscal year to offset expenditures incurred in that same year, for the provision of assessment and counselling products and services.

2. Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the significant items that contributed to the change in resources available for the current year and in the actual expenditures for the quarter ended December 31, 2019.

The following graph provides a comparison of the net budgetary authorities available for spending and the expenditures for the quarters ended December 31, 2019, and December 31, 2018, for the agency’s combined Vote 1 – Program Expenditures and Statutory Authorities.

2.1 Significant changes to authorities

As shown in Section 6: Statement of Authorities, at December 31, 2019, there was an increase of $3,303,000 in authorities available for use in the current year, as compared to the previous year.

• $2,603,000 is explained by an increase in funding received from the Treasury Board submission for Funding to support a healthy, diverse, inclusive and accessible public service.
• The rest is mainly explained by an increase in the additional funding received from the Treasury Board to cover higher current salary rates and retroactive salary payments following the implementation of new collective agreements.

2.2 Significant variances in expenditures from prior year

As shown in Section 7: Budgetary expenditures by standard object, total net budgetary expenditures during the quarter increased from $21,192,000 in 2018-19 to $25,395,000 in 2019-20; a variance of $4,203,000 or 19.8%.

The variance is due mainly to the following:

• an increase of $3,340,000 in personnel, mainly resulting from a salary cost increase of indeterminate employees and of higher current salary rates and retroactive salary payments following the implementation of new collective agreements. 
• an increase of $528,000 in Professional and Special Services, mainly resulting from an increase in contract payments for management consultation services for the renewal of the Public Service Resourcing System. 
• a decrease of $638,000 in revenues netted against expenditures, due mainly to billing periods in the system.

3. Risks and uncertainties

The agency is evolving in a dynamic and complex environment that requires it to be effective, adaptive and innovative to support staffing in federal departments and agencies across Canada. As part of its departmental planning and reporting cycle, the agency undertakes an annual review of its organizational risks, as well as quarterly monitoring of mitigation strategies, activities and changes that are likely to have an impact on its expected results. This monitoring includes strategic oversight of the changes in external risk factors and internal vulnerabilities that may have an impact on the agency’s results.

The agency’s operational context, key risks as well as mitigation strategies can be found in its Departmental Plan 2019-20.

4. Significant changes in relation to operations, personnel and programs

There were no significant changes to operations, personnel or programs during the third quarter of 2019-20.

5. Approved by senior officials

Approved by:

Patrick Borbey
President

Philip Morton, CPA, CGA
Chief Financial Officer

Gatineau, Canada
February 14, 2020

6. Statement of Authorities (unaudited)

Fiscal year 2019–20 (in thousands of dollars)

	Total available for use for the year ending March 31, 2020*	Used during the quarter ended December 31, 2019	Year-to-date used at quarter-end
Vote 1 – Program Expenditures	82,222	21,589	59,342
Statutory – Refund of Previous Year Revenue	32	5	32
Statutory - Spending of proceeds from the disposal of surplus Crown assets	2	0	2
Statutory – Employer Contributions to Employee Benefit Plans	11,545	3,801	8,553
Total Budgetary Authorities	93,801	25,395	67,929
* Includes only Authorities available for use and granted by Parliament at quarter-end.

Fiscal year 2018–19 (in thousands of dollars)

	Total available for use for the year ending March 31, 2019*	Used during the quarter ended December 31, 2018	Year-to-date used at quarter-end
Vote 1 – Program Expenditures	79,176	17,420	51,638
Statutory – Refund of Previous Year Revenue	6	0	6
Statutory – Employer Contributions to Employee Benefit Plans	11,316	3,772	8,487
Total Budgetary Authorities	90,498	21,192	60,131
* Includes only Authorities available for use and granted by Parliament at quarter-end.

7. Budgetary expenditures by standard object (unaudited)

Fiscal year 2019–20 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2020	Expended during the quarter ended December 31, 2019	Year-to-date used at quarter-end
Personnel	86,361	23,967	64,063
Transportation and telecommunications	921	182	434
Information	423	76	183
Professional and special services	15,717	2,602	5,759
Rentals	1,905	173	1,064
Repair and maintenance	687	14	36
Utilities, materials and supplies	173	126	259
Acquisition of machinery and equipment	1,661	176	280
Other subsidies and payments	205	48	842
Total gross budgetary expenditures	108,053	27,364	72,920
Less: Revenues netted against expenditures	(14,252)	(1,969)	(4,991)
Total net budgetary expenditures	93,801	25,395	67,929

Fiscal year 2018-19 (in thousands of dollars)

	Planned expenditures for the year ending March 31, 2019	Expended during the quarter ended December 31, 2018	Year-to-date used at quarter-end
Personnel	86,357	20,627	57,821
Transportation and telecommunications	951	278	593
Information	269	96	185
Professional and special services	12,733	2,074	4,180
Rentals	1,325	336	1,077
Repair and maintenance	138	13	41
Utilities, materials and supplies	250	107	228
Acquisition of machinery and equipment	2,127	69	441
Other subsidies and payments	600	199	583
Total gross budgetary expenditures	104,750	23,799	65,149
Less: Revenues netted against expenditures	(14,252)	(2,607)	(5,018)
Total net budgetary expenditures	90,498	21,192	60,131