Quarterly Financial Report For the quarter ended June 30, 2018 (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 for fiscal year 2018-19. 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 2018-19 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 2018-19 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 June 30, 2018.
The following graph provides a comparison of the net budgetary authorities available for spending and the expenditures for the quarters ended June 30, 2018 and June 30, 2017, for the Agency’s combined Vote 1 – Program Expenditures and Statutory Authorities.
|Net Budgetary Authorities||$85,503||$17,030|
2.1 Significant changes to authorities
As shown in Section 6: Statement of Authorities, at June 30, 2018, there has been an increase of $1,992,000 in authorities available for use in the current year, as compared to the previous year.
The variance is due mainly to additional funding of $1,946,184 received from the Treasury Board of Canada Secretariat for the increase to cover higher current salary rates following the implementation of new collective agreements.
2.2 Changements importants visant les dépenses de l’exercice précédent
As shown in Section 7: Departmental budgetary expenditures by standard object, total net budgetary expenditures during the quarter decreased from $18,191,000 in 2017-18 to $17,030,000 in 2018-19; a variance of $1,161,000 or 6.4%.
The principal reasons for the variance are the following:
- a decrease of $782,000 in personnel, due mainly to a timing difference in the payment of employee benefit plan contributions;
- a decrease of $465,000 in other subsidies and payments, due mainly to a lower number of salary overpayments recognized (salary overpayments are charged to authorities when recognized by the Public Service Pay Centre and recorded as non-tax revenues when recovered from employees)
- an increase of $101,000 in professional and special services, due to timing differences in supplier payments and an increase in expenditures for consulting services related to IT projects.
2.3 Significant changes in revenues netted against expenditures
As of June 30, 2018, the Agency forecasted a total of $8.3M in annual re-spendable revenues for the current fiscal year, which is slightly below the levels of last year’s first quarter forecast of $8.7M.
The decrease is due to a slightly lower forecasted demand for products and services from other departments. The forecast was based on actual sales volume from the previous fiscal year.
3. Risks and uncertainties
The Agency 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 Agency’s key risks and the corresponding mitigation strategies are outlined in its Corporate Risk Profile 2018-2019.
4. Significant changes in relation to operations, personnel and programs
There were no significant changes to operations, personnel or programs during the first quarter of 2018-19.
5. Approved by senior officials
Original signed by:
Original signed by:
Philip Morton, CPA, CGA
Chief Financial Officer
August 29, 2018
|Fiscal year 2018-2019 (in thousands of dollars)|
|Total available for use for the year ending March 31, 2019Foot note 1||Used during the quarter ended June 30, 2018||Year-to-date used at quarter-end|
|Vote 1 – Program Expenditures||$74,188||$17,025||$17,025|
|Statutory – Refund of Previous Year Revenue||–||5||5|
|Statutory – Employer Contributions to Employee Benefit Plans||11,315||–||–|
|Total Budgetary Authorities||$85,503||$17,030||$17,030|
|Fiscal year 2017-2018 (in thousands of dollars)|
|Total available for use for the year ending March 31, 2018foot note 1||Used during the quarter ended June 30, 2017||Year-to-date used at quarter-end|
|Vote 1 Program Expenditures||$72,138||$16,295||$16,295|
|Statutory – Employer Contributions to Employee Benefit Plans||11,373||1,896||1,896|
|Total Budgetary Authorities||$83,511||$18,191||$18,191|
Note de bas de page
|Fiscal year 2018-2019 (in thousands of dollars)||Fiscal year 2017-2018 (in thousands of dollars)|
|Planned expenditures for the year ending March 31, 2019||Expended during the quarter ended June 30, 2018||Year-to-date used at quarter-end||Planned expenditures for the year ending March 31, 2018||Expended during the quarter ended June 30, 2017||Year-to-date used at quarter-end|
|Transportation and telecommunications||731||108||108||551||103||103|
|Professional and special services||10,894||791||791||9,929||689||689|
|Repair and maintenance||75||8||8||220||12||12|
|Utilities, materials and supplies||189||59||59||137||23||23|
|Acquisition of machinery and equipment||659||118||118||464||134||134|
|Other subsidies and payments||77||165||165||126||630||630|
|Total gross budgetary expenditures||99,755||17,581||17,581||97,763||18,661||18,661|
|Less: Revenues netted against expenditures||(14,252)||(551)||(551)||(14,252)||(470)||(470)|
|Total net budgetary expenditures||$85,503||$17,030||$17,030||$83,511||$18,191||$18,191|
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