Statement outlining results, risks and significant changes in operations, personnel and program
A) Introduction
Statistics Canada's mandate
Statistics Canada is a member of the Industry Portfolio.
Statistics Canada's role is to ensure that Canadians have access to a trusted source of statistics on Canada that meet their highest priority needs.
The Agency's mandate derives primarily from the Statistics Act. The Act requires that the Agency collects, compiles, analyzes and publishes statistical information on the economic, social, and general conditions of the country and its people. It also requires that Statistics Canada conducts the Census of Population and the Census of Agriculture every fifth year, and protects the confidentiality of the information with which it is entrusted.
Statistics Canada also has a mandate to coordinate and lead the national statistical system. The Agency is considered a leader among statistical agencies around the world in co‑ordinating statistical activities to reduce duplication and reporting burden.
More information on Statistics Canada's mandate, roles, responsibilities and programs can be found in the 2013–2014 Main Estimates and in the Statistics Canada 2013–2014 Report on Plans and Priorities.
The quarterly financial report
- should be read in conjunction with the 2013–2014 Main Estimates, and with Canada's Economic Action Plan 2012 (Budget 2012)
- has been prepared by management, as required by Section 65.1 of the Financial Administration Act, and in the form and manner prescribed by Treasury Board
- has not been subject to an external audit or review.
Statistics Canada has the authority to collect and spend revenue from other government departments and agencies, as well as from external clients, for statistical services and products.
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 2013-2014 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 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.
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 Budget 2012 could not be reflected in the 2012-2013 Main Estimates.
In fiscal year 2012-2013, 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 2013-2014, the changes to departmental authorities were reflected in the 2013-2014 Main Estimates tabled in Parliament.
The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
B) 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 year, as well as actual expenditures for the quarter ended June 30.
Chart 1 outlines the gross budgetary authorities, which represent the resources available for use for the year as of June 30.
Significant changes to authorities
Total authorities available for 2013-2014 have decreased by $54.2 million, or 9%, from the previous year, from $574.7 million to $520.5 million (Chart 1). This net decrease was mostly the result of the following:
- decreased funding for the 2011 Census of Population and the National Household Survey ($43.3 million), as well as the 2011 Census of Agriculture ($1.9 million)
- reductions for Budget 2012 ($18.3 million), which were included in the 2013-2014 Main Estimates
- partly offset by an increase in funding for collective agreements ($9.2 million).
In addition to the appropriations allocated to the Agency through the Main Estimates, Statistics Canada also has vote net authority within Vote 105, which entitles the Agency to spend revenues collected from other government departments, agencies, and external clients to provide statistical services. Vote netting authority is stable for 2012-2013 and 2013-2014 at $120 million in each of the fiscal years.
Significant changes to expenditures
Total expenditures recorded for the first quarter, ending June 30, 2013, increased by $9.4 million, or 7%, from the same quarter of the previous year, from $129.9 million to $139.3 million (see Table A: Year-to-year Variation in Departmental Expenditures by Standard Object).
Statistics Canada spent approximately 26% of its authorities by the end of the first quarter, compared with 23% in the same quarter of 2012-2013.
| Departmental Expenditures Variation by Standard Object | Year-to-year variation, Q1 2012-2013 to Q1 2013-2014 | |
|---|---|---|
| 000$ | % | |
| Note: An explanation is provided for variances of more than $1 million. | ||
| (01) Personnel | 7,509 | 6.1 |
| (02) Transportation and communications | -485 | -16.9 |
| (03) Information | -8 | -10.4 |
| (04) Professional and special services | 372 | 25.2 |
| (05) Rentals | -45 | -2.0 |
| (06) Repair and maintenance | 12 | 57.1 |
| (07) Utilities, materials and supplies | 25 | 5.7 |
| (08) Acquisition of land, building and works | - | - |
| (09) Acquisition of machinery and equipment | 2,093 | 1,974.5 |
| (10) Transfer payments | - | - |
| (12) Other subsidies and payments | -40 | -88.9 |
| Total gross budgetary expenditures | 9,433 | 7.3 |
| Less revenues netted against expenditures | ||
| Revenues | 10,008 | 198.0 |
| Total net budgetary expenditures | -575 | -0.5 |
01) Personnel: In the first quarter of 2013-2014, Statistics Canada incurred expenditures for severance liquidations related to the signing of collective agreements and a small amount related to the Workforce Adjustment Directive. These expenditures were partly offset by lower salary expenditures resulting from a smaller workforce.
09) Acquisition of machinery and equipment:The increase was the result of acquiring computer equipment in the first quarter.
The increase in revenues was primarily the result of a timing difference in the receipt of funds from a census cost-sharing agreement with another government department. In 2013-2014, the funds were received in the first quarter; in 2012-2013, they were received in the second quarter.
C) Risks and uncertainties
Budgetary pressures, arising from reduced appropriations and reduced cost-recovery revenues, resulted in significant challenges for financial and human resource management in 2012-2013. To manage human resource risks, the Agency opted to move quickly to implement all mandated program adjustments and corresponding workforce reductions. To manage financial risks, given uncertainties over the timing of costs arising from workforce adjustment and the speed of implementation of program adjustments, additional controls were implemented on non-salary expenditures and a number of significant expenditures were re-profiled.
In 2013-2014, Statistics Canada plans to continue to meet these challenges with the following actions and mitigation strategies:
- additional analysis, monitoring and validation of financial and human resources information through a modified monthly financial package for budget holders
- review of monthly project dashboards in place across the Agency to monitor project issues, risks and alignment with approved budgets
- continued realignment and reprioritization of work.
D) Significant changes to operations, personnel and programs
2011 Census of Population and the National Household Survey
Major releases for the 2011 National Household Survey are scheduled from May through August 2013: data certification and processing activities are progressing as planned. Data quality studies for the 2011 Census and National Household Survey will continue through 2013-2014.
E) Budget 2012 implementation
This section provides an overview of the savings measures announced in Budget 2012 that are being implemented to refocus government and programs; make it easier for Canadians and business to deal with their government; and modernize and reduce the back office.
Statistics Canada's savings target as announced in Budget 2012 Economic Action Plan is $33.9 million by 2014-2015. This reduction is being implemented progressively, beginning with $8.3 million on April 1, 2012, rising to $18.3 million on April 1, 2013, in order to achieve the full reduction by April 1, 2014. The reductions as of April 1, 2013 have been reflected in Statistics Canada's Main Estimates. To meet this target, Statistics Canada has focused resources where they are most needed.
The savings incurred through these program adjustments represent moderate reductions in the production of statistics to support development, administration, and evaluation of policy, while continuing to meet the public's highest priority needs. In some cases, the information will continue to be available in a different format. A full list of program adjustments is available online.
Expenditures in the current quarter of 2013-2014 are lower, excluding the costs associated with severance liquidation, than in the same quarter of the previous fiscal year. The $11.5 million reduction is mainly the result of the reduced workforce required after implementing the program adjustments mentioned above.
There are no financial risks or uncertainties related to these reductions.
Approval by senior officials
The original version was signed by
Wayne R. Smith, Chief Statistician
Stéphane Dufour, Chief Financial Officer
| Fiscal year 2013-2014 | |||
|---|---|---|---|
| Planned expenditures for the year ending March 31, 2014 | Expended during the quarter ended June 30, 2013 | Year to date used at quarter-end | |
| in thousands of dollars | |||
| Expenditures | |||
| (01) Personnel | 419,449 | 130,031 | 130,031 |
| (02) Transportation and communications | 26,173 | 2,391 | 2,391 |
| (03) Information | 2,656 | 69 | 69 |
| (04) Professional and special services | 33,940 | 1,851 | 1,851 |
| (05) Rentals | 9,224 | 2,248 | 2,248 |
| (06) Repair and maintenance | 11,951 | 33 | 33 |
| (07) Utilities, materials and supplies | 12,355 | 468 | 468 |
| (08) Acquisition of land, building and works | - | - | - |
| (09) Acquisition of machinery and equipment | 4,586 | 2,199 | 2,199 |
| (10) Transfer payments | - | - | - |
| (12) Other subsidies and payments | 175 | 5 | 5 |
| Total gross budgetary expenditures | 520,509 | 139,295 | 139,295 |
| Less revenues netted against expenditures | |||
| Revenues | 120,000 | 15,063 | 15,063 |
| Total revenues netted against expenditures | 120,000 | 15,063 | 15,063 |
| Total net budgetary expenditures | 400,509 | 124,232 | 124,232 |
| Fiscal year 2012-2013 | |||
|---|---|---|---|
| Planned expenditures for the year ending March 31, 2013 * | Expended during the quarter ended June 30, 2012 | Year-to-date used at quarter-end | |
| in thousands of dollars | |||
| * Planned expenditures do not reflect measures announced in Budget 2012. | |||
| Expenditures | |||
| (01) Personnel | 462,103 | 122,522 | 122,522 |
| (02) Transportation and communications | 26,759 | 2,876 | 2,876 |
| (03) Information | 3,681 | 77 | 77 |
| (04) Professional and special services | 34,641 | 1,479 | 1,479 |
| (05) Rentals | 8,475 | 2,293 | 2,293 |
| (06) Repair and maintenance | 16,069 | 21 | 21 |
| (07) Utilities, materials and supplies | 13,801 | 443 | 443 |
| (08) Acquisition of land, building and works | - | - | - |
| (09) Acquisition of machinery and equipment | 8,424 | 106 | 106 |
| (10) Transfer payments | 561 | - | - |
| (12) Other subsidies and payments | 167 | 45 | 45 |
| Total gross budgetary expenditures | 574,681 | 129,862 | 129,862 |
| Less revenues netted against expenditures | |||
| Revenues | 120,000 | 5,055 | 5,055 |
| Total revenues netted against expenditures | 120,000 | 5,055 | 5,055 |
| Total net budgetary expenditures | 454,681 | 124,807 | 124,807 |
| Fiscal year 2013-2014 | |||
|---|---|---|---|
| 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 | |
| in thousands of dollars | |||
| * Includes only authorities available for use and granted by Parliament at quarter-end. | |||
| Vote 105 – Net operating expenditures | 338,342 | 108,690 | 108,690 |
| Statutory authority – Contribution to employee benefit plans | 62,167 | 15,542 | 15,542 |
| Total Budgetary authorities | 400,509 | 124,232 | 124,232 |
| Fiscal year 2012-2013 | |||
|---|---|---|---|
| Total available for use for the year ended March 31, 2013* , ** | Used during the quarter ended June 30, 2012 | Year to date used at quarter-end | |
| in thousands of dollars | |||
| * Includes only authorities available for use and granted by Parliament at quarter-end. ** Total available for use does not reflect the measures announced in Budget 2012. |
|||
| Vote 105 – Net operating expenditures | 385,523 | 107,517 | 107,517 |
| Statutory authority – Contribution to employee benefit plans | 69,158 | 17,290 | 17,290 |
| Total Budgetary authorities | 454,681 | 124,807 | 124,807 |