Quarterly Financial Report: July 1 to September 30, 2015
Erratum
In the Departmental Budgetary Expenditures by Standard Object table, the personnel expenditures for the quarter ended September 30, 2014 were incorrectly presented as $12,944 instead of $12,994. This report was amended accordingly on December 15, 2015.
Management Statement for the Quarter Ended September 30, 2015
Introduction
This quarterly report has been prepared as required by section 65.1 of the Financial Administration Act and in accordance with Treasury Board Accounting Standard 1.3. It should be read in conjunction with the Main Estimates and Supplementary Estimates for Fiscal Year 2015–2016.
The Canada School of Public Service (the School) was created on April 1, 2004, when the legislative provisions of Part IV of the Public Service Modernization Act came into force. The School is a departmental corporation reporting to the President of the Treasury Board, and its mission is set out in the Canada School of Public Service Act.
The School was created to ensure that all employees of the Public Service of Canada have the competencies and common knowledge required to serve Canadians in the most efficient and effective way possible. To achieve this goal, the School offers a common curriculum and a range of learning products and tools focused on the key skills and knowledge required by a dynamic public service that must constantly adapt to the needs of its stakeholders and Canadians.
The School is the common learning service provider for the Public Service of Canada. It has a legislative mandate to provide a range of learning activities to build individual and organizational capacity and management excellence within the public service. The School is in a unique position to offer relevant, affordable and quality learning services in both official languages to all public service employees at all levels and across the country, as well as to functional communities and public service organizations.
The School's program priorities are geared to delivering results in accordance with the Treasury Board's Policy on Learning, Training and Development, which came into effect on January 1, 2006. The Policy highlights the value of learning and the importance of creating a learning culture within the public service.
The School has a single strategic outcome: "Federal public service employees have the common knowledge, skills and competencies to fulfil their responsibilities in serving Canadians." One program, Learning Services, supports this strategic outcome.
Basis of Presentation
This quarterly report has been prepared using expenditure-based accounting. The accompanying Statement of Authorities includes the School’s spending authorities granted by Parliament and those used by the department, consistent with the Main Estimates and Supplementary Estimates for Fiscal Year 2015–2016. This report has also been guided by 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 monies can be spent by the government. Approvals are given through appropriation acts in the form of annually approved limits or through legislation in the form of statutory spending authority for specific purposes.
As part of the departmental performance reporting process, the School prepares its annual financial statements on a full accrual basis in accordance with Treasury Board accounting standards, which are based on generally accepted accounting principles for the Canadian public sector. However, the spending authorities voted by Parliament remain on an expenditure basis.
This quarterly report has not been subject to an external audit or review.
Highlights of the Quarter Ended September 30, 2015, and Fiscal Year 2015–2016 Results to Date
1. Total Authorities for Fiscal Year 2015–2016
- The School has two sources of funding:
- appropriated funding as voted by Parliament for those activities to be paid from the Consolidated Revenue Fund; and
- statutory funding authority for the respending of revenue and contributions to the employee benefit plans.
- The School’s appropriations were increased to $53.7 million for fiscal year 2015–2016 compared to $41.3 million reported at the end of the second quarter for fiscal year 2014–2015. The increase in appropriated funding is primarily the result of the transition to a new funding model to be completed in 2016–2017, whereby expenditures will be funded primarily from voted appropriation, in terms of the provision of common learning products to partner departments in the core public administration.
- The statutory funding authority of $45.3 million for 2015–2016 consists of $11.3 million of forecasted respendable revenue, $28.2 million of respendable revenue brought forward from the previous fiscal year (under the provisions of section 18(2) of the Canada School of Public Service Act) and $5.8 million for employee benefit plans.
- The total authorities available in fiscal year 2015–2016 amount to $99 million. This is $25.2 million lower than the amount available in fiscal year 2014–2015 due to a decrease in respendable revenue. This decrease is also the result of the transition to the new funding model, shifting over time to reduce fee-based learning to a primarily appropriated core funding model that offers common learning at no cost to the individual learner.
2. Planned Expenditures for Fiscal Year 2015–2016
- The School has planned expenditures of $99 million in 2015–2016, consisting of $65.1 million for salaries and benefits and $33.9 million for operating and maintenance.
3. Expenditures for the Quarter Ended September 30, 2015
- Overall expenditures increased by $2.7 million in the second quarter of fiscal year 2015–2016 compared to the same quarter last year ($20.5 million versus $17.8 million) to support the transformation of the learning platform and the shift to a new business model. This includes an increase in salaries ($2 million), information technology ($0.8 million) and rentals ($0.3 million) and is partially offset by a decrease in professional services ($0.4 million).
4. Year-to-Date Expenditures as at September 30, 2015
- Overall expenditures increased by approximately $1.8 million for the two quarters ending September 30, 2015 compared to the same period last year ($35 million versus $33.2 million). This is primarily due to an increase in salaries ($2.4 million), professional services ($1.1 million), transportation and communications ($0.2 million) and rentals ($0.2 million) that is partially offset by a decrease in other subsidies and payments ($1.7 million).
Risks and Uncertainties
In support of the enterprise-wide approach to learning announced by the Clerk of the Privy Council in May 2014, the School is gradually transitioning to a new business model over three years, beginning in 2014–2015. The management of risk pertaining to the implementation of the new business model is closely aligned with the risk management policies of the School. Given the complexity and the phased approach of the implementation of the new business model, any delay could affect achievement of time-dependent objectives. The management of risks affecting the implementation is tracked and presented by the assigned risk owners as a standing item before a senior management committee overseeing the transition to the new business model. This approach ensures effective monitoring and timely implementation of corrective action.
Significant Changes in Relation to Operations, Personnel and Programs
There have been three changes in senior-level personnel: the appointment of a new Deputy Minister/President, Wilma Vreeswijk; the appointment of Gini Bethell as Acting Vice-President of the Corporate Services branch and Chief Financial Officer; and the appointment of René Bouchard as Acting Vice-President of the Strategic Directions and Service Excellence branch.
Original version signed by:
Wilma Vreeswijk
Deputy Minister/President
Geofredo Garay
Acting Chief Financial Officer
Ottawa, Ontario
November 26, 2015
Statement of Authorities (unaudited)
Statement of authorities for fiscal years 2015-2016 and 2014-2015 in thousands of dollars. Read down the first column for the authorities and then to the right for the figures for the year ending March 31, 2016, the quarter ended September 30, 2015 for fiscal year 2014-2015, the year-to-date used at quarter-end, for the year ending March 31, 2015, the quarter ended September 30, 2014 for fiscal year 2014-2015, and the year-to-date used at quarter-end. The last row of the table displays the total authorities.
| (In thousands of dollars) |
Fiscal year 2015–2016 |
Fiscal year 2014–2015 |
Total available for use for the year ending
March 31, 2016 |
Used during the quarter ended
September 30, 2015 |
Year to date used at quarter-end |
Total available for use for the year ending
March 31, 2015 |
Used during the quarter
ended
September 30, 2014 |
Year to date used at quarter-end |
|
| Vote 1 – Program expenditures |
53,718 |
16,953 |
29,227 |
41,318 |
13,179 |
24,058 |
| Budgetary statutory authorities |
Contributions to employee benefit plans |
5,802 |
1,450 |
2,901 |
5,568 |
1,393 |
2,785 |
Spending of revenues pursuant to subsection 18(2) of the Canada School of Public Service Act |
39,476 |
2,072 |
2,911 |
78,740 |
3,183 |
6,311 |
|
| Total authorities |
98,996 |
20,475 |
35,039 |
125,626 |
17,755 |
33,154 |
Departmental budgetary expenditures by Standard Object (unaudited)
Departmental budgetary expenditures by Standard Object for fiscal years 2015-2016 and 2014-2015 in thousands of dollars. Read down the first column for the list of expenditures and then read to the right for the figures for the year ending March 31, 2016, the quarter ended September 30, 2015, the year-to-date used at quarter-end, the year ending March 31, 2015, the quarter ended September 30, 2014, the year-to-date used at quarter-end. The last row of the table displays the total budgetary expenditures.
| (In thousands of dollars) |
Fiscal year 2015–2016 |
Fiscal year 2014–2015 |
Planned expenditures for the year ending
March 31, 2016Note* |
Expended during the quarter ended
September 30, 2015 |
Year to date used at quarter-end |
Planned expenditures for the year ending
March 31, 2015Note* |
Expended during the quarter ended
September 30, 2014 |
Year to date used at quarter-end |
|
| Expenditures |
Personnel |
65,052 |
15,024 |
27,395 |
69,072 |
12,994 |
25,019 |
Transportation and communications |
2,661 |
406 |
664 |
2,399 |
295 |
473 |
Information |
937 |
133 |
279 |
1,055 |
99 |
211 |
Professional and special services |
21,572 |
3,948 |
5,538 |
45,568 |
3,354 |
4,399 |
Rentals
|
1,279 |
763 |
833 |
2,766 |
508 |
606 |
Repair and maintenance |
3,362 |
30 |
32 |
635 |
287 |
305 |
Utilities, materials and supplies |
735 |
74 |
135 |
1,111 |
57 |
126 |
Acquisition of machinery and equipment |
3,398 |
87 |
109 |
1,328 |
134 |
293 |
Other subsidies and payments Note** |
- |
10 |
54 |
1,692 |
27 |
1,722 |
|
| Total budgetary expenditures |
98,996 |
20,475 |
35,039 |
125,626 |
17,755 |
33,154 |
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