Quarterly Financial Report For the quarter ended June 30, 2017 (unaudited)
- 1. Introduction
- 2. Highlights of fiscal quarter and fiscal year-to-date results
- 3. Risks and uncertainties
- 4. Significant changes in relation to operations, personnel and programs
- 5. Approved by senior officials
- 6. Statement of Authorities (unaudited)
- 7. Departmental budgetary expenditures by standard object (unaudited)
This quarterly financial report should be read in conjunction with the Main Estimates and Supplementary Estimates for fiscal year 2017-18. 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 and it has been reviewed by the Internal Audit Committee of the Public Service Commission (PSC).
This quarterly report has not been subject to an external audit or review.
1.1 Authority and objectives
The PSC 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 PSC's programs can be found in its 2017-18 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 PSC's spending authorities granted by Parliament and those used by the PSC, consistent with the Main Estimates and Supplementary Estimates for the 2017-18 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 PSC 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 PSC has a financial structure comprised of voted budgetary authorities for program expenditures and statutory authorities for contributions to employee benefit plans.
In addition, the PSC 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 net decrease in resources available for the current year and in actual expenditures for the quarter ended June 30, 2017.
The following graph provides a comparison of the net budgetary authorities available for spending and the expenditures for the quarters ended June 30, 2017 and June 30, 2016, for the PSC’s combined Vote 1 – Program Expenditures and Statutory Authorities.
The graph shows total net budgetary authorities available for spending of $83,511 thousand as of June 30, 2017 and $83,603 thousand as of June 30, 2016. It also shows year-to-date expenditures of $18,191 thousand as of June 30, 2017 compared to $19,693 thousand as of June 30, 2016.
2.1 Significant changes to authorities
As shown in Section 6: Statement of Authorities, at June 30, 2017, there have been no significant changes in authorities available for use in the current year, as compared to the previous one.
2.2 Significant variances in expenditures from prior year
As shown in Section 7: Departmental budgetary expenditures by standard object, total net budgetary expenditures during the quarter decreased from $19,693,000 in 2016-17 to $18,191,000 in 2017-18; a variance of $1,502,000 or 7.6%.
The variance is due mainly to the following:
- a decrease of $1,205,000 in personnel, due mainly to a timing difference in the payment of employee benefit plan contributions
- a decrease of $1,026,000 in professional and special services, due mainly to a change in Justice Canada’s billing practices for legal services, which affects the timing of the PSC’s payments and
- an increase of $622,000 in other subsidies and payments, due mainly to salary overpayments. Salary overpayments are charged to authorities when recognized by the Public Service Pay Center and recorded as non-tax revenues when recovered from employees
3. Risks and uncertainties
The PSC operates in a dynamic and complex environment that requires it to be efficient, adaptive and innovative. It uses integrated risk management, including a Corporate Risk Profile that is updated annually, to identify and respond to challenges and opportunities.
The PSC’s key risks and the corresponding mitigation strategies are outlined in its 2017-18 Departmental Plan.
4. Significant changes in relation to operations, personnel and programs
Effective May 17, 2017, Patrick Borbey became the new President of the PSC pursuant to Order-in-Council 2017-0519. He replaced Gerry Thom, who had been fulfilling the duties of president on an interim basis.
There were no significant changes to operations or programs during the first quarter of 2017-18.
5. Approved by senior officials
Original signed by:
Original signed by:
Philip Morton, CPA, CGA
Chief Financial Officer
August 21, 2017
|Fiscal Year 2017-18||Fiscal Year 2016-17|
|Total available for use for the year ending March 31, 2018Footnote 1||Used during the quarter ended June 30, 2017||Year to date used at quarter-end||Total available for use for the year ending March 31, 2017 Footnote 1||Used during the quarter ended June 30, 2016||Year to date used at quarter-end|
|Vote 1 – Program Expenditures||$72,138||$16,295||$16,295||$71,160||$16,582||$16,582|
|Statutory - Employer Contributions to Employee Benefit Plans||11,373||1,896||1,896||12,443||3,111||3,111|
|Total Budgetary Authorities||$83,511||$18,191||$18,191||$83,603||$19,693||$19,693|
|Fiscal year 2017-18||Fiscal year 2016-17|
|Planned expenditures for the year ending March 31, 2018||Expended during the quarter ended June 30, 2017||Year to date used atquarter-end||Planned expenditures for the year ending March 31, 2017||Expended during the quarter ended June 30, 2016||Year to date used atquarter-end|
|Transportation and telecommunications||551||103||103||489||132||132|
|Professional and special services||9,929||689||689||9,976||1,715||1,715|
|Repair and maintenance||220||12||12||32||5||5|
|Utilities, materials and supplies||137||23||23||128||55||55|
|Acquisition of machinery and equipment||464||134||134||702||140||140|
|Other subsidies and payments||126||630||630||51||8||8|
|Total gross budgetary expenditures||97,763||18,661||18,661||97,855||20,346||20,346|
|Less: Revenues netted against expenditures||(14,252)||(470)||(470)||(14,252)||(653)||(653)|
|Total net budgetary expenditures||$83,511||$18,191||$18,191||$83,603||$19,693||$19,693|
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