Quarterly Financial Report For the Quarter Ended December 31, 2016

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 and the previous quarterly financial report. This quarterly report has not been subject to an external audit or review.

Mandate and programs

The Office of the Commissioner of Official Languages (OCOL) supports the Acting Commissioner of Official Languages in fulfilling her mandate, which consists of taking all actions and measures within her 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 programs can be found in the 2016-17 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 2016-17 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.

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 December 31, 2016, total authorities available for the fiscal year increased by $677,000 compared to the previous fiscal year, mainly due to the increase in the operation budget carry forward amount.

Significant changes to budgetary expenditures

OCOL has used 66% of its authorities as of December 31, 2016, of which 82 % represents personnel costs.

Expenditures in this quarter rose by $585,000, or 13 %, compared to the same quarter of the prior year. The increase is due mainly to the following factors:

  • Increase of $369,000 in personnel costs as a result of an increase in severance payments, determinate and casual employee salary.
  • Increase of $96,000 in acquisition of machinery and equipment mainly due an increase in computer equipment purchase.
  • Increase of $94,000 in professional and special service costs as a result of increase in payments for informatics support contracts and training consultants.

Risks and Uncertainties

Project Management Capability

The organization rarely implements projects of the size and complexity of the Integrated Enterprise Management Solution (IEMS). To manage results, the organization must develop and optimize its capacity to manage projects.

OCOL is developing an investment planning process to assess business cases for projects, including costs, benefits and options.

OCOL is developing a governance structure to manage and monitor the large projects approved through the investment plan.

Level of Resources

The current level of resources may not allow the organization to fully deliver its mandate and adequately meet the expectations of parliamentarians, federal institutions and the public.

OCOL is working on a long-term financial strategy to assess the resource requirements and ensure they are aligned with priorities.

OCOL will review and enhance the budgeting and forecasting processes for the organization.

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.

Approval by Senior Officials

The original version was approved and signed by:

Ghislaine Saikaley
Acting Commissioner of Official Languages

Éric Trépanier, CPA, CGA
Chief Financial Officer
Assistant Commissioner
Corporate Management

Gatineau, Canada
March 1, 2017

Statement of Authorities (unaudited)

Statement of Authorities (unaudited) (in thousands of dollars)
  Fiscal year 2016–17 Fiscal year 2015–16
Total available for use for the year ending March 31, 2017Table note * Used during the quarter ended December 31, 2016 Year to date used at quarter end Total available for use for the year ending March 31, 2016Table note * Used during the quarter ended December 31, 2015 Year to date used at quarter end
Vote 1 - Program expenditures 19,524 4,552 12,728 18,901 3,981 12,596
Budgetary statutory authorities 2,332 583 1,749 2,278 569 1,708
Total budgetary authorities 21,856 5,135 14,477 21,179 4,550 14,304

Table note

Table note *

Table note *Includes only Authorities available for use and granted by Parliament at quarter end.

Return to table note * referrer

 

Departmental budgetary expenditures by Standard Object (unaudited)

Departmental budgetary expenditures by Standard Object (unaudited) (in thousands of dollars)
Expenditures: Fiscal year 2016–17 Fiscal year 2015–16
Planned expenditures for the year ending March 31, 2017 Expended during the quarter ended December 31, 2016 Year to date used at quarter end Planned expenditures for the year ending March 31, 2016 Expended during the quarter ended December 31, 2015 Year to date used at quarter end
Personnel 16,460 4,090 11,884 15,837 3,721 11,856
Transportation and communications 637 144 373 764 110 358
Information 135 37 102 332 11 87
Professional and special services 3,701 672 1,713 3,362 578 1,565
Rentals 274 55 178 298 72 245
Repair and maintenance 327 2 49 91 33 103
Utilities, materials and supplies 266 32 67 121 18 51
Acquisition of machinery and equipment 55 103 111 374 7 39
Other subsidies and payments 1 0 0 0 0 0
Total gross budgetary expenditures 21,856 5,135 14,477 21,179 4,550 14,304