Quarterly Financial Report For the Quarter Ended June 30, 2013

Introduction

This quarterly financial 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 Treasury Board. It should be read in conjunction with the Main Estimates, the previous quarterly financial report, as well as Canada’s Economic Action Plan 2012 (Budget 2012). This quarterly report has not been subject to an external audit or review.

Mandate and program activities

The Office of the Commissioner of Official Languages (OCOL) supports the Commissioner of Official Languages in fulfilling his mandate, which consists of taking all actions and measures within his authority to ensure recognition of the status of each of the official languages and compliance with the spirit and intent of the Official Languages Act in the administration of the affairs of federal institutions, including any of their activities relating to the advancement of English and French in Canadian society.

Further information about OCOL’s responsibilities and program activities can be found in the 2013-14 Report on Plans and Priorities and in the Main Estimates.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes OCOL’s spending authorities granted by Parliament and used by OCOL, consistent with the Main Estimates for the 2013-14 fiscal year. This quarterly report has also 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 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.

OCOL uses the full accrual method of accounting to prepare and present its annual financial statements, which are part of the organization's performance reporting process. However, the spending authorities voted by Parliament are prepared on an expenditure basis.

As part of the Parliamentary business of supply, the Main Estimates must be tabled in Parliament on or before March 1 preceding the new fiscal year. Budget 2012 was tabled in Parliament on March 29, after the tabling of the Main Estimates on February 28, 2012. As a result the measures announced in the Budget 2012 could not be reflected in the 2012-13 Main Estimates.

In fiscal year 2012-13, frozen allotments were established by Treasury Board authority in departmental votes to prohibit the spending of funds already identified as savings measures in Budget 2012. In 2013-14, the changes to departmental authorities were reflected in the 2013-14 Main Estimates tabled in Parliament.

Highlights of Fiscal Quarter and Fiscal Year to Date

This section presents a brief analysis of significant variances in relation to actual expenditures and planned expenditures that affected both the quarter and the year to date results, compared to the same periods of the preceding fiscal year.

Significant changes to authorities

As of June 30, 2013, total authorities available for the fiscal year increased by $3.3 million compared to the previous fiscal year, mainly due to the following factors:

  • A $2.8 million increase in the amount allocated by Treasury Board for an advance to cover the move of offices in the National Capital Region during the present fiscal year, this allocation will be reimbursed over a nine-year period;
  • A $0.3 million increase in the amount allocated by Treasury Board for the reduction of space of the new offices;
  • A $0.2 million increase in the amount allocated for the increase in salaries.

Significant changes to budgetary expenditures

OCOL has spent approximately 20% of its authorities as of June 30, 2013, of which 83% represents personnel costs.

Expenditures in this quarter have increased by $0.1 million or 3% compared to the same quarter in the previous fiscal year. This increase is mainly due to the increase of casual employees.

Risks and Uncertainties

Funding required for IM/IT

OCOL is gradually implementing its strategic plan. The Budget 2012 reflected necessary IT investments to address its deteriorating applications. Details are discussed in the Budget 2012 Implementation section.

Capacity to meet expectations

There is a risk that OCOL does not have the capacity to handle complaints and respond to requests for information from parliamentarians, the public and federal institutions. OCOL is anticipating an increase in the demand for its services, particularly as a result of public service budget restraint measures and the closure of a number of federal institutions’ regional offices.

Moving offices in the National Capital Region

OCOL will be moving its offices from 344 Slater, Ottawa to 30 Victoria, Gatineau. OCOL has been advanced funds, which it will have to repay over a period of nine years. However, this move brings with it financial pressures, as is often the case with this type of project.

Budget 2013

This budget is based on reducing travel costs by using technology. This principle has already been integrated into the IM/IT strategic plan that OCOL is currently implementing. Consequently, it will be possible to reduce travel costs, which are already low. The Commissioner is sensitive to this issue; for example, he reduces his travel as much as possible and, when travel is necessary, he travels economy class.

Significant Changes in Relation to Operations, Personnel and Programs

There have been no significant changes in relation to operations, personnel and programs during the current quarter.

Budget 2012 Implementation

As announced in Budget 2012, OCOL contributes to the Government’s expenditure restraint efforts by reallocating operating savings towards necessary information technology investments. Over a four-year period, a total of $4.2 million will be allocated to the implementation of an IM/IT integrated solution.

The implementation of the action plan as a result of the A-Base review produced some efficiency gains and released funds.

OCOL has conducted a comprehensive analysis and identified expenditure items to determine which projects could be delayed. For example, the launch of the awareness campaign that had been planned for the travelling public has been rescheduled to a later date, and all proposed staffing actions are referred to our staffing committee to determine if any can be delayed.

For the immediate future, OCOL allocates its resources based on the most important priorities related to its mandate. However, once information technology investments have been completed, OCOL will need to reallocate its resources back to programs to ensure delivery on its mandate.

Approval by Senior Officials

The original version was approved and signed by:

Graham Fraser
Commissioner of Official Languages

Nancy Premdas, CMA
Chief Financial Officer
Assistant Commissioner
Corporate Management

Ottawa, Canada
August 29, 2013

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in thousands of dollars)
  Fiscal year 2013–14 Fiscal year 2012–13
Total available for use for the year ending March 31, 2014* Used during the quarter ended June 30, 2013 Year to date used at quarter end Total available for use for the year ending March 31, 2013* Used during the quarter ended June 30, 2012 Year to date used at quarter end
Table note *Includes only Authorities available for use and granted by Parliament at quarter end.
Vote 20 - Program expenditures 21,622 4,155 4,155 18,361 4,037 4,037
Budgetary statutory authorities 2,250 563 563 2,250 563 563
Total budgetary authorities 23,872 4,718 4,718 20,611 4,600 4,600

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Expenditures: Fiscal year 2013–14 Fiscal year 2012–13
Planned expenditures for the year ending March 31, 2014 Expended during the quarter ended June 30, 2013 Year to date used at quarter end Planned expenditures for the year ending March 31, 2013 Expended during the quarter ended June 30, 2012 Year to date used at quarter end
Personnel 15,182 3,915 3,915 15,037 3,775 3,775
Transportation and communications 1,406 150 150 958 105 105
Information 130 12 12 208 14 14
Professional and special services 4,215 456 456 3,521 526 526
Rentals 300 81 81 109 86 86
Repair and maintenance 800 18 18 261 8 8
Utilities, materials and supplies 150 21 21 161 21 21
Acquisition of machinery and equipment 1,689 64 64 350 65 65
Other subsidies and payments - 1 1 6 - -
Total gross budgetary expenditures 23,872 4,718 4,718 20,611 4,600 4,600